The Real Problem With Enron

We all know what the talk of the town is right now: it's the collapse of energy giant Enron

due to the nefarious practices of some corporate bigwigs. And, in just the same way that a

massacre is latched onto by the media and used as a clarion call for gun-control, this event is

being used to justify greater government intervention into our lives, which of course is a further

removal of our freedoms. The problem here is a failure to understand the problem, which leads

to the prescription of a cure that's worse than the disease. We wouldn't conclude after dropping

one glass of milk on the floor that we should cease to carry milk, or discard the glass in which it

was contained, but that's exactly what we do when we make policy based on anecdotal evidence.

While the damage is infinitely greater, the truth is that one shooting or one case of corporate

fraud is statistically no more significant than a little spilt milk. But people often fail to see the

forest from the trees; they have their eyeballs so closely affixed to the map, that they see only the

scene of the crime and not the whole map. So, let's back up a bit and see if we can widen our

I don't have to tell you that human nature is fraught with frailty. We have always and will

always have people who commit crimes, and those who are unfaithful; lawyers who manipulate the law for their own ends, auto mechanics charging for work not done and doctors committing

malpractice. We'll always be able to find examples of people violating every moral imperative

in the book - that's the nature of the beast. But the saying "the devil is in the details" is quite

apropos here, because we'll never understand ANY societal problem, be it one of the above or

some other or Enron, unless we view it within the context of the whole society. To do otherwise

would be like a doctor treating symptoms and not the underlying cause. The disease must be

identified, and you do that by understanding that ALL the symptoms must be viewed as being

Now, let's move on to the diagnosis, by putting the symptoms exhibited by the body of

America in perspective. I mentioned transgressing lawyers, doctors, corporate executives,

spouses, etc., but what do all people who do things wrong have in common? Sure, the nature of

their misdeeds might be different, but what is a common thread? The answer is very simple: all

people who do wrong, do things that are wrong. So the issue is not simply how to prevent

another Enron, or another school shooting or another politician from taking bribes. Because it's

not just about misdeeds within the context of a corporation, a home, a restaurant or a sports

arena - it's about misdeeds period. So the issue is a much larger and age-old one: how can

civilization minimize the number of wrongs that will be done?

The answer to the last question is pretty simple too, but alas, common-sense is very

uncommon. I submit to you, that what has increased the chances of corporate malfeasance is the

same thing that has caused there to be more crime in the streets, and children to be more

disobedient. Namely, the across the board lack of accountability - the lack of effective

punishment in our nation. In Singapore they have almost no crime, and why? Michael Faye, the

teen-age American who received a well-deserved caning some years back can tell you. It's

because the punishment administered there is so severe that almost no one will take the chance

of running afoul of the law. Children years ago were obedient to their parents, whereas now . . .

well . . . let's just say there's a reason why ritalin has replaced Pez - and why were they obedient? Because our grandparents used the application of a switch to the posterior, and knew that "time-outs" should be reserved for football games.

So, how do you minimize the chances of more Enron fiascoes? Well, if the offending

corporate slugs would have all their wealth seized and find themselves living a Spartan lifestyle

in a work-camp, do you think very many kindred spirits would want to roll the dice similarly and

risk finding themselves in a neighboring cell? You see, we'll always have people who are

governed not by what's right, but by unenlightened self-interest. These people will always do a

cost/benefit analysis of their prospective actions when deciding to act rightly or wrongly. It's up to us to make sure that when they do, it's patently obvious that the risk/reward factor weighs heavily

against them. This is the REAL issue that underlies Enron. We need to make a wholesale change

in our attitude regarding justice. We need to dispense with the permissive, liberal nonsense and

once again make sure that those who do wrong get what they deserve: a day's suffering for a

day's misdeeds. Of course, you won't hear this truth from pseudo-intellectual academics, or

pundits or pandering politicians who try to lay the blame at the feet of political opponents. Most

of them will drone on about the minutiae of new laws and regulations we supposedly are in dire

need of, and this is a shame. Because we should learn something from the Enron debacle, but it

should be about what really ails the patient - not just his latest symptom.



	The Real Problem With Enron

by Selwyn Duke We all know what the talk of the town is right now: it's the collapse of energy giant Enron due to the nefarious practices of some corporate bigwigs. And, in just the same way that a massacre is latched onto by the media and used as a clarion call for gun-control, this event is being used to justify greater government intervention into our lives, which of course is a further removal of our freedoms. The problem here is a failure to understand the problem, which leads to the prescription of a cure that's worse than the disease. We wouldn't conclude after dropping one glass of milk on the floor that we should cease to carry milk, or discard the glass in which it was contained, but that's exactly what we do when we make policy based on anecdotal evidence. While the damage is infinitely greater, the truth is that one shooting or one case of corporate fraud is statistically no more significant than a little spilt milk. But people often fail to see the forest from the trees; they have their eyeballs so closely affixed to the map, that they see only the scene of the crime and not the whole map. So, let's back up a bit and see if we can widen our perspective and see the big picture. I don't have to tell you that human nature is fraught with frailty. We have always and will always have people who commit crimes, and those who are unfaithful; lawyers who manipulate the law for their own ends, auto mechanics charging for work not done and doctors committing malpractice. We'll always be able to find examples of people violating every moral imperative in the book - that's the nature of the beast. But the saying "the devil is in the details" is quite apropos here, because we'll never understand ANY societal problem, be it one of the above or some other or Enron, unless we view it within the context of the whole society. To do otherwise would be like a doctor treating symptoms and not the underlying cause. The disease must be identified, and you do that by understanding that ALL the symptoms must be viewed as being indicative of a systemic malaise. Now, let's move on to the diagnosis, by putting the symptoms exhibited by the body of America in perspective. I mentioned transgressing lawyers, doctors, corporate executives, spouses, etc., but what do all people who do things wrong have in common? Sure, the nature of their misdeeds might be different, but what is a common thread? The answer is very simple: all people who do wrong, do things that are wrong. So the issue is not simply how to prevent another Enron, or another school shooting or another politician from taking bribes. Because it's not just about misdeeds within the context of a corporation, a home, a restaurant or a sports arena - it's about misdeeds period. So the issue is a much larger and age-old one: how can civilization minimize the number of wrongs that will be done? The answer to the last question is pretty simple too, but alas, common-sense is very uncommon. I submit to you, that what has increased the chances of corporate malfeasance is the same thing that has caused there to be more crime in the streets, and children to be more disobedient. Namely, the across the board lack of accountability - the lack of effective punishment in our nation. In Singapore they have almost no crime, and why? Michael Faye, the teen-age American who received a well-deserved caning some years back can tell you. It's because the punishment administered there is so severe that almost no one will take the chance of running afoul of the law. Children years ago were obedient to their parents, whereas now . . . well . . . let's just say there's a reason why ritalin has replaced Pez - and why were they obedient? Because our grandparents used the application of a switch to the posterior, and knew that "time-outs" should be reserved for football games. So, how do you minimize the chances of more Enron fiascoes? Well, if the offending corporate slugs would have all their wealth seized and find themselves living a Spartan lifestyle in a work-camp, do you think very many kindred spirits would want to roll the dice similarly and risk finding themselves in a neighboring cell? You see, we'll always have people who are governed not by what's right, but by unenlightened self-interest. These people will always do a cost/benefit analysis of their prospective actions when deciding to act rightly or wrongly. It's up to us to make sure that when they do, it's patently obvious that the risk/reward factor weighs heavily against them. This is the REAL issue that underlies Enron. We need to make a wholesale change in our attitude regarding justice. We need to dispense with the permissive, liberal nonsense and once again make sure that those who do wrong get what they deserve: a day's suffering for a day's misdeeds. Of course, you won't hear this truth from pseudo-intellectual academics, or pundits or pandering politicians who try to lay the blame at the feet of political opponents. Most of them will drone on about the minutiae of new laws and regulations we supposedly are in dire need of, and this is a shame. Because we should learn something from the Enron debacle, but it should be about what really ails the patient - not just his latest symptom.



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