Section 4: Chapter 19, Economic Prosperity Summary and Analysis

Areas high in social capital are good places to get ahead. Many studies show that when people trust each other and social networks are strong, everyone in those networks and area has a greater likelihood of succeeding as well.

Individually, life changes are affected by social capital and connections. The connections that one has can make or break someone. These ties can influence who gets a job, promotion, and other benefits on the job. People within social networks have greater access to letters of recommendation, advice, and job leads. Social capital also affects economics. Studies have shown that institutions and social networks can be put to good use by unemployed people, when these factors are available. Immigrant networks can provide help and money for individuals who want to start businesses. Unemployed individuals often use social...