EDITORIAL Enron fall shows sorry state of politics
When Enron Corp. hurtles downward
like the giant from Jacks beanstalk, dragging millions of people with it,
Treasury Secretary Paul ONeill remarks, Its capitalism as
usual. Muted hurrahs.
But it is more. It is capitalism as usual linking arms
with politics as usual. And its a sorry, disturbing and
ultimately shameful sight.
Enron provides the latest commentary on an American
corporate-political complex that is morally unsound and ethically debased. In a
word, corrupt.
Economically, this is a continuing part of the meltdown of
Americas recent gilded age when money was everything.
Politically, this is America as a Third World shambles: Enron and
its auditors and their political pals are a study in corruption. The only thing
that distinguishes this morass from a Third World dictatorship is that these
American activities are not illegal (at least as far as we yet know).
The debacle is also a reminder that many U.S. government
regulatory agencies -- from the Securities and Exchange Commission to the
Federal Drug Administration -- and their regulations came into being in
response to scandal and corruption.
Think of Enron Corp. as a market stall. It sold what it did not
sow or reap. Its table was filled with baskets of energy it had bought
elsewhere and stockpiled at a time when such practices contributed to forcing
up prices.
Then came the collapse. People no longer needed to pay those
prices. Meanwhile, Enron had sold shares in the stall to millions of people
based on its own -- and Anderson accountants -- valuation of the stall,
the stockpile and the potential market. Enron had also, when business was good,
shoved fistfuls of money into the pockets of eagerly accepting politicians, not
least those of Presidents George W. Bush and Bill Clinton.
The object lessons and fallout of Enrons downward hurtle are
worth pondering:
If anything spells the end of the Republican goal to
privatize Social Security, its probably Enron. Horrified Americans,
hearing how Enron officials unloaded their stocks while urging their employees
to hold on into poverty, wonder if they can trust their employers. They know if
their employers, like Enron, fail them, and theres no Social Security,
theres nothing. Anxiety in the corporate world is evident. The National
Association of Manufacturers immediately constituted a special task force to
deal with a likely backlash on stock ownership issues, and the fear of
government regulation of how corporations run their employee stock ownership
programs.
When, one wonders, did it become such a scandal to
be a CPA? The big accounting firms and the numbers they sign their names to
used to mean something. Thats less and less true today. And in recent
times Anderson hasnt been the only one. Andersons activities,
however, were conflicts of interest mounted on conflicts of interest.
Meanwhile, watch for the big accounting firms to pump extra millions to the
political bagmen to ward off further regulation of their industry in the
post-Enron shakedown.
No one is charging that contributions from the Enron
corporate suite to Bush or Clinton led to an immediate quid pro quo, or that
this was anything but politics as usual. The scandal is precisely that: that
this is U.S. politics.
Nor are Enrons White House and Congressional attachments
anything that campaign finance reform, as presently envisioned, would prevent.
To prevent corporations from buying politicians, the entire election funding
system would have to be rethought.
Now questions loom. Why is our system so corrupt? And how did
Enron get away with its fabrications right up to the end? The answers are two
strings of the same bow.
If political ethics ever meant anything (and even in Honest Abe
Lincolns time votes and money had a symbiotic relationship), the
difference today is in the sheer amount of money needed to get elected. Money
buys access. No money, no access; no access, no victory.
The power of money, the glitz it throws off when Enron or the
dot.coms are churning billions, dazzles people, especially politicians. It
dazzles until another bubble bursts and everyone once more sees there was
nothing inside.
The long-term consequences of Enron are extremely serious.
Fat and happy still, unprepared by good civics lessons, blinded by
patriotism -- particularly now -- and by a less-than-critical belief in the
American system, one wonders what it would take for the average American
citizen to truly realize that he and she have been disenfranchised by corporate
America and the lobby system.
For sure, it would take nothing short of a sustained citizen
revolution to clean up politics. And one wonders if todays Americans,
aware they had been disenfranchised, would have the appetite and staying power
to see that revolution through to its end. Or even begin it.
National Catholic Reporter, January 25,
2002
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