> High trust is prima facie incompatible with capitalism
Quite compatible
> If you want a high trust society, you don't want capitalism.
There is nothing at all in capitalism that would prevent a high level of trust in society.
> Capitalism is inherently low trust
But that's not true. The thing about capitalism is that it's RESILENT to low trust. It does not require low levels of trust, but is capable of functioning in such conditions.
> If the penalty for deceit was greater than the penalty for non-deceit
Who are the judges? Capitalism is the most resistant to deception, deceivers under capitalism receive fewer benefits than under any other economic system. Simply because capitalism is based on the premise that people cheat, act out of greed, try to get the most for themselves at the expense of others. These qualities exist in people regardless of the existence of capitalism, it is just that capitalism ensures prosperity in society even when people have these qualities.
If we look at any communist society, the only way to get ahead was lying and cheating. China was forced to adopt capitalist markets to deal with this, hence why modern China hardly resembles the USSR, Cuba, Venezuela, or Laos.
The problem is that without capitalism ONLY lying and cheating will get you ahead. Look at ANY country that builds its economy on the restriction of people's economic freedom, on the absence of private property rights - these are the most deceitful and disgusting regimes in the world with zero level of public trust.
