The Smartest Guys in the Room

What Frank Rich says:


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.

Like Enron's stockholders, American taxpayers pay for the production of such propaganda, even if its message, like that of the Enron show put on for visiting analysts, misrepresents and distorts the bottom line of the scheme that is being sold. We paid for last year's phony television news reports in which the faux reporter Karen Ryan "interviewed" administration officials who gave partially deceptive information hyping the Medicare prescription-drug program. We paid Armstrong Williams his $240,000 for delivering faux-journalistic analysis of the No Child Left Behind act.

The administration cycled the Ryan and Williams paychecks through the PR giant Ketchum Communications. Ketchum was also one of the companies hired to flack for Andersen, the now-defunct Enron accounting firm that shredded a ton of documents. We don't know what, if any, role Ketchum is playing in the White House's Social Security propaganda push, though we do know the company has received at least $97 million from the government, according to a Congressional report...

The Bush propagandists have been successful at many tasks, from fomenting the canard that Iraqis attacked on 9/11 to deflecting moral outrage from Abu Ghraib and toward indecency as defined by its Federal Communications Commission. But Social Security may be a bridge too far even for propaganda machinery of this heft. Polls find that an ever-increasing majority of the country rejects the idea of letting Wall Street get its hands on its retirement savings.

You're either with Bu$hCo, or against it.

Obviously Dear Leader must reign in this outbreak empirical saavy.