Invisible Capital: A Story of Wages, Trust, and Etiquette

Invisible Capital: A Story of Wages, Trust, and Etiquette—What Could Be

in·vis·i·ble cap·i·tal (noun)

1. Definition:
   The hidden currency of trust, respect, and social norms that sustains economies, societies, and relationships. It includes the unspoken agreements that systems will operate with fairness, dignity, and mutual benefit, often reflected through equitable wages, transparent policies, and empathy-driven leadership.

2. Usage in Context:
   "When Invisible Capital erodes—through inequality, distrust, and stagnating wages—systems crumble, just as they did in Marie Antoinette's France."

If Invisible Capital were cake, we’d all still be starving. 🍰

It begins, as these things often do, with a city full of potential. San Antonio—a place blessed with skilled workers, abundant resources, and an economy brimming with possibility. On paper, it’s a dream. The numbers tell us this city should be thriving. Instead, wages trickle down like crumbs from a table set for kings, and the basic etiquette of economic fairness is long forgotten.

Imagine a worker—let’s call her Sofia. She wakes up before dawn in her small home on the edge of the city. She’s good at her job—really good. She builds, fixes, welds, or maybe she staffs a busy floor, answering phones with the kind of patience that takes years to master. She doesn’t complain, but when the paycheck comes, it barely covers rent. Groceries? Maybe if she skips eating out… again. Savings? Forget it.

San Antonio’s GDP is $182.1 billion (Federal Reserve, 2023). Split evenly, each household would earn $335,500 annually and, per capita, $125,990. But Sofia doesn’t see that. What she sees is her paycheck: $59,593 if she’s lucky. Sofia’s productivity is high, her contributions immense, but the system—the people deciding who gets paid and how much—treat her Invisible Capital as worthless.

She trusts her employer, the economy, the system… until she doesn’t. And when trust collapses, things unravel quickly.

Act I: The Wages That Build Cities—and the Etiquette That Sustains Them

Once upon a time, there was another place where trust eroded. It had palaces, gowns embroidered with gold, and bread… or at least bread for the privileged few. The workers, the people who made the city run, found themselves staring into bakery windows, asking: Why are we starving when we built the oven?

Marie Antoinette’s court had visible capital—the gold, the jewels, the opulence—but it lacked Invisible Capital. She misunderstood the basic etiquette of leadership: respect for the people who sustain your system. Her failure wasn’t just ignoring bread prices; it was ignoring the fundamental courtesy of listening, empathizing, and acting in good faith. Invisible Capital is etiquette in action—a social contract that keeps the economy humane.

Math Moment: Bread, Wages, and the Fragility of Trust

In 1788, a loaf of bread cost nearly 50% of a French worker’s daily wage. Bread wasn’t just food; it was survival. As prices soared and wages stagnated, the invisible contract between the monarchy and the people collapsed. Henry George described this fracture as “an immense wedge driven through society” (Progress and Poverty). That wedge—inequality—soon split the system in two.

Historical Breakdown:

• Daily Wage (1788): ~30 sous

• Price of Bread: ~15 sous

Modern Parallels:

Era	Key Statistic
1788 France	Bread = 50% of daily wage
2024 U.S.	Bottom 50% = 2% of total wealth
2024 U.S. Top 1%	Control 40% of total wealth

Bayesian Model: Predicting Wage Redistribution Outcomes

To move from inequity to equity, we can model wage redistribution using Bayesian probability:

Let P(W|GDP) represent the probability of fair wages (W) given total GDP.

Bayesian Formula:

Where:

• P(W) = prior probability of wage fairness (current wage distribution data)

• P(GDP|W) = likelihood of redistributing GDP equitably based on productivity

• P(GDP) = total GDP as observed (e.g., $182.1 billion in San Antonio)

This formula highlights that if wealth is equitably redistributed based on workers' productivity, the probability of wage fairness (P(W|GDP)) significantly increases—a future where Sofia’s pay reflects her labor.

Act II: What Happens When Trust and Etiquette Break?

San Antonio isn’t Versailles, but the warning signs are there. Workers like Sofia contribute more than ever, but their wages don’t reflect it. Confidence—the foundation of trust—is fraying.

As Akerlof and Shiller argue in Animal Spirits, human emotion—particularly confidence—drives economies. When workers lose trust that hard work leads to fair pay, they stop investing in the system.

Trust, much like bread in 1788, becomes too costly to sustain. Systems become brittle. Invisible Capital collapses.

Act III: The San Antonio That Could Be

Picture this: Sofia’s wages reflect her productivity. She’s not just surviving; she’s thriving. She buys local, invests in her future, and her kids get a chance to dream bigger. Multiply Sofia by thousands, and the city transforms.

Modern Math Moment:

Worker productivity in the U.S. has increased by 250% since 1970, yet wages have grown by only 44%. The gap between what workers produce and what they are paid continues to widen, and this is not a coincidence- it's by design. If wages had grown in line with productivity, the economic picture for families like Sofia's would look drastically different. 

If wages were tied to productivity:

Wage Growth Formula:

Where:

• W_{current} = current wage

• P_{growth} = productivity growth (e.g., 250%)

• W_{growth} = wage stagnation rate (e.g, 44%)

If applied in San Antonio, median wages could quadruple, moving from $59,593 to levels that align with economic growth and respect workers' contributions. The wealth exists- it simply isn't shared.

Act IV: Etiquette for the Modern Economy—Rebuilding Trust

Emily Post said it best: “True etiquette is about creating environments where everyone feels valued.” The economy works when people—all people—are respected. Invisible Capital grows when:

1. Wages Reflect Productivity: Workers’ efforts must tie directly to economic outcomes.

2. Policies Redistribute Wealth: Incentives for wage fairness ensure Invisible Capital flows, not stagnates.

3. Transparent Systems: Open pay scales build trust.

EF Schumacher’s Wisdom: Systems must serve people, not the other way around. Fairness is efficiency.

Conclusion: Redistribute Trust, Not Just Wealth

Marie Antoinette ignored the fragility of trust, and we all know how that turned out. Today, inequality threatens the same collapse. Piketty warns us that extreme inequality destabilizes systems, eroding the trust economies rely upon.

But here’s the opportunity: Trust and respect are not finite. Like Invisible Capital, they grow when shared—through fair wages, empathy-driven policies, and systems designed for people.

Trust is earned. Wages reflect respect. Invisible Capital grows when shared.

The math is simple. The etiquette is clear. The question isn’t whether San Antonio can afford this. The question is whether it will.

Here is a quick two-question survey link to further the Invisible Capital research.