This paper examines the phenomenon of revolving door politics in the United States, arguing that the movement of government officials into lobbying and industry roles undermines fair governance and regulatory oversight. Using the 2010 Deepwater Horizon disaster and the Mineral Management Service's regulatory failures as a primary case study, the paper illustrates how close ties between regulators and the industries they oversee lead to corruption and inefficiency. The case of former New Jersey Governor Jon Corzine further demonstrates the financial sector's vulnerability to revolving door dynamics. The paper concludes by advocating for a mandatory three-year cooling-off period before elected officials may join lobbying firms.
Politics is a lucrative business. The federal government constantly handles billions of dollars and makes consequential decisions that affect dozens of industries across the country. It is no wonder, then, that politicians find their expertise and connections in Washington to be a valuable asset when considering a post-political career. This phenomenon is called revolving door politics, and it carries negative implications for the fairness of the American lobbying system and for the extent to which the U.S. government is willing to provide oversight of the contracts and laws it passes (Taibbi, 2012).
The revolving door is a problem because it disrupts the so-called iron triangle — the separation of spheres of influence among citizens, corporations, and government. When corporations and government work together too closely, the result is corruption, inefficiency, and a loss of competitiveness, all of which are harmful to a free-market society.
This dynamic was illustrated most dramatically by the Deepwater Horizon drilling disaster in the Gulf of Mexico in 2010. The Mineral Management Service (MMS), the agency responsible for overseeing the drilling platform, failed to fulfill all of its required regulatory duties (Tempest, 2010). Compounding this failure, the revolving door was identified as a serious problem within the MMS: many of its top officials had previously worked for the very oil companies the agency was supposed to regulate.
The situation within the MMS was so severe that, following the disaster, the Obama Administration dissolved the agency and redistributed its responsibilities between two new bodies: the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement. The MMS had been the nation's most profitable federal agency after the IRS, a fact that likely explains why Congress had been so reluctant to address the growing revolving door problems within it.
"Corzine's career as a revolving door case study"
The revolving door is a dangerous political dynamic that places overseers uncomfortably close to those they are supposed to regulate. Some industries, such as oil and gas, require a high level of technical expertise that can only be attained through direct professional experience, which makes managing their safety oversight even more difficult. Other industries depend heavily on personal connections and the access that individual officials can provide to key decision-makers and investors.
A complete ban on public elected officials joining lobbying firms for a period of three years should be enacted by the public sector to curtail excessive revolving door activity. Three years is sufficient time to preserve relevant institutional knowledge about a given field, while also allowing enough of a transition period for meaningful turnover in Washington and within incoming administrations.
Foley, S. (November 18, 2011). "Goldman Sachs Conquers Europe." The Independent. London.
Taibbi, M. (January 11, 2012). "Revolving Door." Rolling Stone Magazine. New York.
Tempest, R. (June 2010). "Before Deepwater Horizon Disaster." Wyoming File. Idaho Falls.
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