This can result in paralysis and/or radicalization of the effected population depending on how it's used.
Unfortunately we kind of have both the internal and external problems in effect right now.
Either way, at face value, I do agree that cynical mistrust (especially when partisan) is more immediately damaging to society than uncritical absolute trust, regardless of each of their relative frequencies. However, I do believe that each of these phenomena reinforce each other in a vicious cycle. The contrarian denialist feels vindicated when he sees the blind acceptance placed on certain sources by the naïve truster on the other end of the political spectrum. The naïve truster, on the other hand, feels that any criticism or questioning directed towards trusted sources on his side is to behave like the contrarian denialist would. Hence the mutual polarisation.
[1] https://www.city-journal.org/article/slouching-toward-post-j...
Both over-skepticism and under-skepticism are bad and should be recognized and fought. If you only oppose one of them, then it's likely because your preferred party is, too.