In this section, Putnam addresses the implications of the decline in social capital and civic engagement, or The Consequences of Reduced Amounts of Social Capital. Drawing upon the work of scholars in multiple disciplines, he outlines the positive impact of social capital on individuals, communities, and nations. Social capital allows citizens to resolve collective problems more easily and greases the wheels that allow communities to function smoothly (288). With higher levels of trust, there is minimal need to spend time on the enforcement of agreements, for example. In a society rich with social capital, people are more likely to be tolerant and empathetic toward others. Operating through psychological and biological processes, social capital significantly improves the lives of individuals.

Putnam explores five areas to highlight the positive impact of social capital in this section, namely child welfare and education, healthy and productive neighborhoods, economic prosperity, health and happiness, and democratic citizenship and governmental performance (290). To quantify the amount of social capital in various states, Putnam uses 14 indicators of formal and informal community networks to establish a Social Capital Index. He finds substantial differences among American states in terms of social capital.