The Enronization of the Social Security Debate

In tomorrow's Times, Frank Rich examines the similarities between Enron and the administration, specifically the propaganda machines on which they are constructed.

The enduring legacy of Enron can be summed up in one word: propaganda. Here was a corporate house of cards whose business few could explain and whose source of profits was an utter mystery - and yet it thrived, unquestioned, for years. How? As the narrator says in "The Smartest Guys in the Room," Enron "was fixated on its public relations campaigns." It churned out slick PR videos as if it were a Hollywood studio. It browbeat the press (until a young Fortune reporter, Bethany McLean, asked one question too many). In a typical ruse in 1998, a gaggle of employees was rushed onto an empty trading floor at the company's Houston headquarters to put on a fictional show of busy trading for visiting Wall Street analysts being escorted by Mr. Lay. "We brought some of our personal stuff, like pictures, to make it look like the area was lived in," a laid-off Enron employee told The Wall Street Journal in 2002. "We had to make believe we were on the phone buying and selling" even though "some of the computers didn't even work."

If this Potemkin village sounds familiar, take a look at the ongoing 60-stop "presidential roadshow" in which Mr. Bush has "conversations on Social Security" with "ordinary citizens" for the consumption of local and national newscasts. As in the president's "town meeting" campaign appearances last year, the audiences are stacked with prescreened fans; any dissenters who somehow get in are quickly hustled away by security goons. But as The Washington Post reported last weekend, the preparations are even more elaborate than the finished product suggests; the seeming reality of the event is tweaked as elaborately as that of a television reality show. Not only are the panelists for these conversations recruited from administration supporters, but they are rehearsed the night before, with a White House official playing Mr. Bush. One participant told The Post, "We ran through it five times before the president got there." Finalists who vary just slightly from the administration's pitch are banished from the cast at the last minute, "American Idol"-style.

But just as mere PR couldn't keep Enron from imploding -- and Ken Lay soon to be on trial for helping to sell his "Potemkin Village" to his own employees even as he may have been dumping stock, so will PR only go so far for Bush on private accounts.

And, as Rich notes, it is ironic that Bush's old friend, Kenny, along with a host of other corrupt greed heads are again being paraded before the cameras on their way to court just as Bush tries to sell the American public on handing their last-resort retirement benefits over to Wall Street.

It's worth a read, assuming you want you blood to boil a bit.