...The proposed taxonomy ties each of the five collapse stages to the breaching of a specific level of trust, or faith, in the status quo.
Dmitry Orlov's Five Stages of Collapse
Stage 1: Financial collapse. Faith in "business as usual" is lost. The future is no longer assumed resemble the past in any way that allows risk to be assessed and financial assets to be guaranteed. Financial institutions become insolvent; savings are wiped out, and access to capital is lost.
Stage 2: Commercial collapse. Faith that "the market shall provide" is lost. Money is devalued and/or becomes scarce, commodities are hoarded, import and retail chains break down, and widespread shortages of survival necessities become the norm.
Stage 3: Political collapse. Faith that "the government will take care of you" is lost. As official attempts to mitigate widespread loss of access to commercial sources of survival necessities fail to make a difference, the political establishment loses legitimacy and relevance.
Stage 4: Social collapse. Faith that "your people will take care of you" is lost, as local social institutions, be they charities or other groups that rush in to fill the power vacuum run out of resources or fail through internal conflict.
Stage 5: Cultural collapse. Faith in "the goodness of humanity" is lost. People lose their capacity for "kindness, generosity, consideration, affection, honesty, hospitality, compassion, charity" (Turnbull, The Mountain People). Families disband and compete as individuals for scarce resources. The new motto becomes "May you die today so that I die tomorrow" (Solzhenitsyn, The Gulag Archipelago). There may even be some cannibalism.
In a recent post (listed below), Orlov recently added a sixth stage, the only one not based on faith:
Stage 6: Environmental collapse. ...There is also the sixth stage... —environmental collapse—at the end of which we are left without a home, having rendered Earth (our home planet) uninhabitable.
Read the full articles at following links:
Five Stages of Collapse
Stages of Collapse Revised: Joined at the Wallet
The Sixth Stage of Collapse