I thought it was Morgoth, a valar and not an elf, who made them. In any case it twists the causal relationship because the goblins subsequently make their own pitiful conditions. I do not condone the terminology even if solely on the basis of how reductionist it is. Since a government is, in its pure form, only a body of people, you can translate trust between people and trust between a government if it is sufficiently representative.