'Ask Not What Your Country Can Do For You’: Legacies of the Great Recession and the Trust Crisis

This paper investigates how persistent changes in trust caused by the Great Recession have affected how citizens across Europe responded to the next global crisis: the COVID-19 pandemic. We show that increases in individualism and mistrust towards institutions caused by individual exposure to the 2007–08 financial crisis led to significant declines in mobility during the initial period of lockdown. We attribute this effect to individuals prioritizing their own safety amid perceived breakdowns in the social contract. We also document increased discontent among exposed citizens with traditional European centrist governments. These results suggest that economic events that lead to changes in social trust have lasting legacies by affecting government and citizen responses to future crises.