A growing sense of inequality is eroding trust in institutions, capitalism, and long-held social values, according to the 2020 Edelman Trust Barometer. The global survey, now in its 20th year, highlights a dramatic shift in public sentiment: many people no longer believe that working hard is enough to achieve a better life.
A Trust Paradox in Developed Nations
Despite sustained economic growth in many countries, the survey found that a majority of respondents in every developed market do not expect to be better off in five years. This sentiment marks a departure from the traditional belief that economic performance directly contributes to societal trust and upward mobility.
“We are living in a trust paradox,” said Richard Edelman, CEO of Edelman. “Since we began measuring trust 20 years ago, economic growth has fostered rising trust. This continues in Asia and the Middle East, but not in developed markets, where national income inequality is now the more important factor.”
The study suggests that in advanced economies, inequality is suppressing hope and fueling disillusionment. People no longer view hard work as a reliable path to success, and this shift in belief is weakening the foundations of both capitalism and democratic institutions.
A World Divided: Elites vs. the Mass Population
Perhaps the most striking finding of the report is the emergence of a “trust chasm” between the informed public and the broader population. While 65% of the informed public — defined as university-educated individuals aged 25-65 in the top 25% of household income and frequent news consumers — say they trust institutions, only 51% of the mass population feel the same. This 14-point gap reflects a growing divide in perception and lived experience.
“The result is a world of two different trust realities,” the report notes. “The informed public remains far more trusting of every institution than the mass population.”
This disparity is especially pronounced in developed nations. In Australia, for example, trust levels among the informed public stand at 68%, compared to just 45% among the mass population — a 23-point gap. This division reveals deep-rooted concerns about fairness, representation, and institutional accountability.
Rising Anxiety and Fear of Displacement
Beyond the issue of trust, the report highlights a surge in public anxiety related to economic insecurity and the fast pace of technological change. A staggering 83% of employees worldwide fear losing their jobs — due to automation, lack of skills, foreign competition, immigration, or the rise of the gig economy.
More than half (57%) of respondents worry they are losing the respect and dignity they once enjoyed in their country. Nearly two-thirds believe that technological innovation is progressing too quickly, with little consideration for its societal impact. Australia reported one of the sharpest declines in trust in technology, with gig economy concerns topping the list of job-related fears.
These findings indicate that while the global economy may show signs of health on paper, many people feel excluded from its benefits. Their concerns are not just economic but emotional and existential — tied to identity, status, and control over their future.
Questioning Capitalism Itself
In perhaps the most radical signal of discontent, 56% of global respondents said that capitalism in its current form does more harm than good. This sentiment is gaining traction even in markets traditionally aligned with free-market ideals. It suggests a profound questioning of systems once seen as the engines of progress.
This disillusionment with capitalism is tightly connected to perceptions of fairness and opportunity. As wealth becomes increasingly concentrated and wage growth stagnates for many, faith in the ability of the system to deliver broad-based prosperity is fading.
A Call for Inclusive Leadership
The 2020 Edelman Trust Barometer concludes that rebuilding trust will require more than economic indicators. Institutions — from governments and businesses to media and NGOs — must acknowledge the fears of the majority and actively work to close the trust gap.
“Fears are stifling hope, and long-held assumptions about hard work leading to upward mobility are now invalid,” Edelman emphasized.
In today’s polarized environment, trust is no longer guaranteed by growth alone. It must be earned through transparency, fairness, and inclusive policies that address inequality head-on. Without such efforts, the trust divide will likely deepen, threatening the legitimacy of institutions and the stability of global systems.
