Societies with generalized reciprocity are more efficient. Social networks and
reciprocity can facilitate cooperation for everyone’s mutual benefit. Reputations are built
through increased gossip, which in turn reduces opportunities for malfeasance. It is
important to note how the positive aspects of social capital can be maximized while
minimizing the negative aspects. One of the most positive aspects o f social capital is
trust. Trustworthiness is a social lubricant. Crime is lower when people trust each other.
Trust also reduces transaction costs, which are the costs of the every day business of life.
It allows us to let our guards down and reduces worrying (Putnam, 2000). When people
grow up close to their parents and friends they have a network of social support. People
can get to know each other better and leam to trust each other when they stay in one
community for prolonged periods of time (Layard, 2005). Social capital can also be
directed towards purposes that do not benefit society as a whole.