Thefifth part of the movie “Inside the Job” illustrates how the rise of financialsector caused the downfall of the manufacturing sector.
The core companies ofthe United States were poorly managed and felled behind their foreigncompetitors. Thousands of people lost their jobs and American company’s sentjobs to China’s newly opened companies to save money. As manufacturing industrydeclined, other industries rose, especially technological industry. However,people needed education in order to find jobs in this sector. These lead to anastronomical increase in universities tuition fees. The Bush administration sharplyreduced taxes on investment gains, stock dividends and eliminated the estatetax. These then causes another problem, which was Inequality of wealth.American families responded to this in two ways: they either worked longer orwent into debt.
So, this makes an urge to make easy to get credit. “For thefirst time in history, average Americans have less education, and are lessprosperous than their parents”. Barack Obama spoke about the need to reformthe industry. Although the Presidential administration of the United States hasofficially changed, the same Wall Street players are now economic advisorsin the new administration.
Hence, nothing has changed. In 2009, theunemployment hit its highest level over past 17 years, the same year MorganStanley paid its employees over $14 billion and Goldman Sachs paid out over $16billion. The movie then describes the core of the problem in the United States,pointing that “The men and institutions that caused the crises are still inpower, and that needs to change”. The movie “Inside Job” focused onthe corrupt actions of politicians, university professors, financialorganizations, regulators, and rating firms that competed on the Wall Streetmonopoly game board with monopoly money provided by a failed economic monetarysystem.