Hollywood, Wall Street and the Universities

The villains in the powerful documentary by Charles Ferguson about the 2008 economic crisis, Inside Job, are the de-regulators. The film was recently released to cinemas in North America and Europe and was produced by Sony Pictures Classics.

No one can tell to what extent the top men in government, on Wall Street, in industry and economics departments in universities were true believers in the libertarian message of deregulation. No doubt some were. What is clear, according to recent experiences, is that true beliefs, and concerns for the public good, were in the last few years often trumped by diverse corroding factors, among them outrageous executive bonuses and, in the universities, by preposterously high consultants fees to economics professors.

The extent of the corruption is so well known by now that few people are shocked by its revelation. What is perhaps not so well known is that – astoundingly – so many of the villains are still in positions of authority.

The doubts that were, no doubt, expressed in the board room of Sony Pictures when the film was first discussed were obviously overcome, very much to their credit. The legal department must have been asked to make sure that defences were ready should there be any defamation suits.

Shots of the Statue of Liberty in N.Y. harbour at the conclusion of the film were intended to suggest that, in the end, traditional decency will prevail even in the face of relative decline and the dysfunctional nature of American institutions.

An argument for optimism is that in spite of the Horatio Alger myth, Wall Street is not admired by Hollywood and by popular culture in general, but social idealism (as long as the word “liberal” is not used) is considered a prime virtue.

But the arguments for pessimism are at least as strong. Right-wing demagoguery is dominating the airwaves, with ugly racism just under the surface, and the universities are in league with corporate America while shrinking humanities departments are on the defensive. The conventional media, too, are in the hands of corporate interests, although individual journalists are often guided by journalistic ethics. On the Internet, anything goes – therefore, it is a positive factor. In a showdown between organized religion and the power of money, the outcome is far from certain. As to the political parties, Inside Job blames both.

Where does the Tea Party fit it? It is a populist anti-corruption movement with a high moral purpose and should therefore be welcomed. On the other hand, it believes in simple solutions and must therefore be condemned as dangerous in a complex world. Moreover, it is financed, at least in part, by the Superrich, in the hope that they can manipulate it in their interests.

Perhaps Aung San Suu Kyi can help us, too?