There are striking parallels between September 11 and the collapse of Enron. Both events involved widespread destruction of trust and its attendant costs. Both have now involved the loss of human life and disruption of the lives of thousands of families. And when the Enron case is finally litigated, we may conclude that both involved criminal behavior.
|
| The comparison of loss of life and criminal activity between the two is so forced as to appear not only insensitive but also positively asinine. |
|
| —Joe Hill |
MIT economist Paul Krugman argued recently in The New York Times that "in the years ahead Enron, not September 11, will come to be seen as the greater turning point in U.S. society." Although some might argue the point, a case can be made that events following September 11 have not confirmed our worst fears at the time. Those of us who did not lose loved ones or even acquaintances have learned to live with inconveniences that are somewhat less than truly life-altering. We have even learned how to act differently in the case of further attacks.
There is an old saying that things are never as bad or as good as they at first seem. If you believe that, you've got to believe that some good always accompanies the bad and vice-versa. For at least a period of several months, September 11 has united Americans and others against a common enemy, brought families together, and encouraged many to reappraise their lives.
Ironically, the most immediate outcome from Enron will likely be the enrichment of the very professions that contributed to the mess. First, there will be the obvious windfall of extra legal fees from Enron and related cases. Then it is quite likely that the accounting profession will be enriched permanently through higher auditing and related fees more willingly paid by anxious directors. Insurers too will enjoy increased business and higher rates.
But will we see other positive fallout from Enron? If so, what form will it take? Will investors finally gain access to the kind of data that will provide insights into the quality of corporate profits? Will the work of business-related professions, with or without outside oversight, adhere more closely to relevant codes of ethics? Will directors reassess the seriousness of their roles and act more responsibly? In fact, will we one day look back on Enron as a useful chapter in American business, law, and government? In fact, will Enron one day overshadow the events of September 11 as a turning point in U.S. society? What do you think?