Social Capital: The Wealth You Can't Keep in a Bank

The Two Types of Wealth

If you lost your job tomorrow, financial capital (savings) would pay your rent. But who would help you update your resume? Who would bring you a casserole? Who would listen to you vent? That is Social Capital.

Political scientist Robert Putnam famously distinguished between two types of social capital:

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  Bonding Capital: The glue that holds close groups together. Family, close friends, ethnic groups. It's good for "getting by."
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  Bridging Capital: The oil that lubricates interactions between different groups. Acquaintances, neighbors, colleagues. It's good for "getting ahead."

The Decline of Trust

We are living in a low-trust era. We lock our doors, we avoid eye contact, and we assume the worst of strangers. This is a tax on our quality of life. High-trust societies are wealthier, healthier, and happier. Low-trust societies are expensive and stressful.

Loop Score: Measuring the Intangible

This is why we built the Loop Score. It is an attempt to make social capital visible. When you see a neighbor with a high Loop Score, you aren't just seeing a number; you are seeing a history of reliability, generosity, and trust.

Investing in Your Neighborhood

Building social capital is like compound interest. A small favor today—lending a cup of sugar, watching a package—builds a foundation of trust that pays dividends for years. In a crisis, financial capital can vanish overnight (inflation, market crashes). But a strong community is a recession-proof asset.