Inside Job by Charles Ferguson - Essay Example

The faculty chair of the department of economics at the University of Iceland, Gylfi Zoega, justifies the practice by recapping that it was a universal problem. “In New York, you have the same problem, right?”The actors use the utilitarian philosophy to vindicate their actions. The utilitarian philosophy holds that actions are rational if they result in a ‘summum bonus, the greatest good, and a happy end to a greater number.

It contravenes the hedonistic approach where an individual acts for their own good and happiness. The revolving door, from a utilitarian perspective, could be beneficial to both the private and government sector. For instance, former industry executives bring their rich knowledge and vast proficiency to the private segment and secure the private segment support needed in the formulation and implementation of government policies. The former executives further would have sufficient influence over important individuals in government positions thus making it easy for firms to lobby for auspicious state policies and protocols.

Moreover, former executives acquired jobs, power, and influence and Charles Ferguson presents this as a beneficial approach to the financial crisis that was threatening to engulf America. The predominant notion is that allowing executives to switch positions was in the best interest of the public; in reality, this was far from the veracity. However, the utilitarian approach to the revolving door issue was quite imprudent since utilitarianism justifies overlooking or minimization of widely embraced principles and justice in the formulation of ethical decisions.

Instead, the actors should have framed their actions to be in line with the deontological philosophy and rights-based philosophy which could have led to the production of a fairly acceptable and justified movie. The deontological philosophy holds that individuals have specific rights that must be treasured and respected, notwithstanding the cost of keeping the moral cultural fabrics intact. The revolving door jeopardized society’s right to be represented by unprejudiced government bureaucrats.

If the deontological philosophy was used, a former Goldman Sachs policymaker, Gary Gensler, would not have been appointed to the position of chairing the Commodity Futures Trading Commission and other executives would not have switched their positions. This way, the regulation would not have been weakened, the society could have been fairly represented through legitimately appointed officers, and possibly the financial crisis could have been avoided. Rights-based philosophy maintains that individuals have rights and others have the obligation to ensure that the individuals get and enjoy their rights.

The revolving door could be averted if this theory had been utilized. The administrators would have left the former executives to act on best policies and on grounds that would have ensured that the public’s rights are upheld. Obama would have appointed unblemished individuals rather than people like William Dudley, Glen Hubbard, and Shapiro who were evidently committed to weakening the regulations that were governing the industry before the onset of the financial crisis. Further, the administrators would have demoted any executives that were acting against the good of the public.