It's a Wonderful Life, Mr. Scrooge, and Other Tales From La La Land

Larry E. Ribstein, University of Illinois College of Law, has published "How Movies Created the Financial Crisis", in the Michigan State Law Review for Winter 2009. Here is the abstract.

Narrative makes sense out of reality and can forcefully persuade listeners to a particular point of view. Artists in general have a narrative of business which springs from their belief that at least some aspects of business are antithetical to art. Filmmakers add to this a resentment of the constraints capital places on their art. Film is particularly persuasive because of its vivid images and because of the consistency of filmmakers’ anti-capitalist perspective on business. Filmmakers’ negative portrayal of capitalists has helped to prepare the public to believe that capitalists - and not government, economic cycles, greedy people or business generally - caused the financial crisis. This will help the public accept a regulatory agenda built on this premise, specifically including the regulation of hedge funds.

Download the Article from SSRN at the link.