DeSales University

Department of Philosophy & Theology



ENRON SCANDAL

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Preamble

What kind of scandal? You decide! At the very least, capitalism, as a normative theory of resource allocation, has not been well-served by some Enron executives, some members of the accounting profession, and some "analysts" from the financial services industry. Apparently, some Enron executives, and others, including their political, ideological, and academic apologists, thought that capitalism was merely an ideology of insider profits for the well-connected rather than a theory of transparent economic markets and the fair distribution of related social goods.

We should all remember this cautionary comment from Adam Smith, the principal founding theorist of capitalism: The proposal of any new law or regulation of commerce which comes from this order [i.e., that of the business interests, the "dealers" as Smith calls them], ought always to be listened to with great precaution, and ought never to be adopted till after having long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it. Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations. Book 1, Chapter 11.

News Sites Visit daily!

Washington Post Comprehensive, well-organized coverage, & growing day by day

Washington Post The Numbers Crunch - Special Auditing Report

Washington Post Accounting Industry

Financial Times[London] Superb!

The Economist Excellent coverage from the world's real weekly capitalist tool!

C-Span Gets you quickly to the investigating committees

PBS News Hour Lots of interviews, analysis, & commentary

N. Y. Times Not as well-organized as the Washington Post but worth a daily visit

Wall Street Journal Limited on-line resources unless you are a paying subscriber!

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