In business and in government, lesson after lesson has been learned against trusting the ‘smartest guys in the room.’

Remember Enron, where doubters were told by CEO Jeff Skilling that they just didn’t ‘get it’? … the alarmist climate scientists who have long stated that the science is settled…. the Obama Administration energy decision-makers who know which technologies are ‘environmentally sustainable’ and are ‘commercially promising’?

F. A. Hayek warned against the ‘pretense of knowledge” where an intellectual elite via government coercion plans for the rest of us. Economist/educator Russell Roberts (Mercatus Center, George Mason University) explained what Hayek meant in a Wall Street Journal piece, “Is the Dismal Science Really a Science?”

If economics is a science, it is more like biology than physics. Biologists try to understand the relationships in a complex system.

“The state’s Public Utility Commission, or PUC, approved the CREZ concept in 2008 in response to a directive [mandate] from the [Texas] Legislature in 2005.”

– Kate Galbraith, “Texas’ Wind Transmission Project Keeps Rolling,” The Texas Tribune, September 8, 2010

“Lt. Governor David Dewhurst was the largest recipient of [CREZ] contractor funds with $419,250 from January 2005 through February 2010. …. The CREZ project has turned out to be a money-making opportunity for many politicians and companies.”

– Dan Byfield, “The Politics of Transmission Lines.”  San Angelo Standard Times, June 29, 2010.

A political fight of national import is on in Texas for the U.S. Senate between Tea Party favorite Ted Cruz and Republican-establishment favorite David Dewhurst. Voting this week has put these two in a runoff come July 31st for the Republican nomination.…

It was an opinion-page editorial that was not warmly received by my employer at the time, Enron Corp. “Wind power poses several major dilemmas,” my Washington Times piece read.

Among them, it remains uneconomical despite heavy subsidies from ratepayers and taxpayers over the last two decades—through 1995 the Department of Energy (DOE) had spent $900 million in wind energy subsidies. Second, wind farms are noisy, land intensive, unsightly, and hazardous to birds, including endangered species.

In response, Ken Karas, chairman & CEO of Enron Wind Corporation, wrote to Tom White, chairman & CEO of Enron Renewables Corporation:

Does Bradley still work for Enron? If so, I believe he should be terminated. This article is pure yellow journalism….

I was not terminated, but I reached a (fair) agreement with Enron CEO Ken Lay that I would stop writing about windpower given the obvious commercial interest and stockholder stake Enron had in this sector.…

“The stakes here could not be clearer. Economic studies have shown that Congressional inaction on the PTC will kill 37,000 American jobs, shutter plants and cancel billions of dollars in private investment. Congress needs to understand that, with PTC uncertainty, layoffs have already begun and further job losses and even plant closings will accelerate each month as we near expiration in December.”

– Denise Bode, quoted in American Wind Energy Association, “As Wind Manufacturing Job Losses Loom, Bipartisan Wind Extension Drive Continues (February 16, 2012).

Three cheers for market-driven resource reallocation for personal and economic betterment.

Some of us can speak from personal experience. I was part of the 4,000-person layoff from Enron Corporation on Monday December 3, 2001. The economy became a little more efficient that day, as many started getting jobs at other energy companies and elsewhere where consumer demand was stronger.…