Global Financial Crisis
The movie Inside Job, also known as a Documentary, is aimed at the economic meltdown and attempts to understand the various reasons of the same. It also criticizes various economists and Columbia University’s academicians like Glenn Hubbard, Frerderic Mishkin because they failed to forecast the economic meltdown (O’Brien, 2010). These academicians and economists were being paid to be consultants to big companies which pointed very blatantly to conflict of interests. They were being paid by those very people on whom they were supposed to research. It was difficult for the public to trust any research, or recommendation provided by them.
In the movie, Hubbard was accused of not disclosing his fees of consulting assignments with various financial firms and Mishkin was also questioned on a report which assured stability of Iceland’s economy which obviously proved incorrect. The movie had an impact on the public on a lot of things, primarily being conflict of interest as it highlighted these cases of Columbia’s academicians (Wretling, 2011). The film highlights the pitfalls in the financial system of a country, and the lack of governance which led to this massive financial downfall and crisis.
According to the research and the movie Inside Job, Glen Hubbard who was on the council of Economic advisors in Bush’s administration, was paid $100,000 to testify for two executives in a financial firm by the US government. Economists were regularly paid to provide testimonies and write research papers and reports which showed the financial firms in a positive light (Eipstein & Hagbarth, 2010, p.46). This perhaps makes it clear why very few economists had warned about the upcoming economic downfall in 2006-2008. The support for strict financial regulation has not been seen much amongst these economists. This is where conflict of interest was a primary concern (Stuart, 2012, p. 405).