вЂBureaucratic capitalвЂ™ consists also of good relationship with the lower-level bureaucracy. It is essentially inside knowledge of the system, including any loopholes that might exist. These actions are termed as bureaucratic capital. In fact, the regulator while in office takes actions and makes decisions enabling him to cash in later when joining a firm he has regulated. Industry, in turn, hires people out of government positions to gain personal access to government officials, seek favorable legislation/regulation and government contracts in exchange for high-paying employment offers, and get inside information on what is going on in government. Governments hire industry professionals for their private sector experience, their influence within corporations that the government is attempting to regulate or do business with, and in order to gain political support (donations and endorsements) from private firms. This theory gained a new level of importance in the United States, following the 2008 crisis, when prominent government figures insinuated that previous and future hirings in the financial sphere manipulates the decision-making of eminent government members when it comes to financial matters. In the literature, it has been described as a means to influence the financial industry. The revolving door phenomenon has become a public interest in the 2010s, with the writings of Andrew Baker, Simon Johnson and James Kwak.

The metaphor of a revolving door has been used to describe people switching jobs, from working as lawmakers, to being lobbyists, and vice versa.

Revolving door politics definition