Watching the documentary “Inside Job” allowed me to have more of an objective perspective on the Financial Crisis of 2008. Working in a financial institution in many ways created a subjective perspective towards this economic crisis, and in many ways I would put much of the blame on the government for its negligence towards financial regulation. However after watching this film, much of the blame shifted from the government towards the greedy Financial moguls that orchestrated in many ways, the downfall of their own financial corporations. The Chief Executive Officers in many of these investment banks and securities corporations were extremely reckless with their companies’ assets, but had no risk in doing so as their personal wealth would in no way be affected.
The blame however cannot be placed solely on one spectrum of the problem. The blame has to be placed on each spectrum, from the individuals making these reckless decisions, to those in government wanting deregulation of our economy. This notion of de-regulation created a shift in our economic paradigm. Financial moguls believed that the economy was self-sufficient and could not go through another economic catastrophe as it did with the Great Depression.
Deregulation along with our society’s obsession with the accumulation of wealth allowed financial moguls to exploit their investors in order to have a financial gain. They were able to capitalize on this notion that one should borrow capital in order to amass more capital. Failed leadership by Alan Greenspan allowed this notion to become a hegemonic ideology. He was heavily influenced by Ayn Ran, a Russian philosopher who stressed ethical egoism, and rejected any sort of collectivism, and ethical altruism.
Financial innovators capitalized on this weak regulation and were able to substantial amass wealth all throughout this period. Karl marx always rejected capitalism as he believed that the division of labor creates a class struggle. This class struggle would always involve the owners of the means of production exploiting those who sell their labor as a means of survival.
Hopefully as a society we can learn from our mistakes as we have seen that history always repeats itself. The individuals with social and economic power must make better decisions as they affect billions of people throughout the world.