A death announcement last week in the Houston Chronicle caught my eye. I never met the late Stephen Simon, but what I read made me realize that the quiet heroes and heroines of free-market capitalism need to be saluted now and then. For they are the wealth creators and real philanthropists versus the political system’s wealth redistributionists and wealth destroyers.

Here is the essence of this man. An engineer. More than 40 years with a major energy company in a variety of advancing positions at home and abroad. Successful. Private sector philanthropist with his time and money.

And through it all, a “heroic capitalist” in the Smith-Smiles-Rand tradition (see Part I of my Capitalism at Work). A practitioner of Principled Entrepreneurship ™.

Think of what Julian Simon would have said about Stephen Simon (no relation): He created more than he consumed to leave us resource richer.…

“Enron Lives! in Waxman-Markey. The sooner the public, media, and intelligentsia realize this, the faster cap-and-trade can be put in the dustbin of bad ideas.”

– Cap-and-Trade: The Temple of Enron, MasterResource, May 14, 2009.

Joseph Romm holds a Ph.D. (in physics) from MIT and works for a 501(c)3 foundation. Being highly educated and in the education business, to most of us, means being careful and fair in our arguments–and avoiding reckless ad hominem argument. But not so with Joe as evidenced by his very inaccurate recent post against me.

In “George Will and WattsUpWithThat embrace a proud former shill for a man convicted on fraud and conspiracy charges,” Romm argues that I must be corrupt because of my former association with Enron and Ken Lay–and thus George Will and the mega-site WattsUpWithThat are party to corruption too.…

“This agreement will be good for Enron stock!!”

– John Palmisano, “Implications of the Climate Change Agreement in Kyoto & What Transpired” (1997)

The 219–212 passage of HR 2454 inspires another look at Enron’s infamous “Kyoto memo,” written almost 13 years ago by company lobbyist John Palmisano. Indeed, an Enron memo upon House passage of the Waxman-Markey climate bill would have been similar! Change the dates and some other specifics and the bottom line would be the same–potential gains for Enron’s profit centers in wind, solar, CO2-emissions trading, energy outsourcing, and natural gas.

One can imagine a quotation like this from Enron’s fabled public relations department, hyperbolizing a half-victory into something bigger in the attempt to create a bandwagon effect:

“This historic vote was heard ’round the world,” stated Kenneth L. 

“Today the conservation movement is led by sober business men and is based on the cold calculations of the engineers. Conservation, no longer viewed as a political issue, has become a business proposition…. The old school looked on conservation as a governmental function; the new school believes in entrusting it to the hands of business men and engineers.”

– Erich Zimmermann, World Resources and Industries (New York: Harper & Brothers, 1933), pp. 784–85.

Profit-seeking conservation is nothing new, as economists have noted. So why must we assume that self-interested conservation is a ‘market failure’ requiring government subsidies and mandates? Why is market decision-making with energy necessarily sub-optimal?

And if “market failure” is posited, what must be said about “government failure”? Political processes are human too, and worse, bureaucrats do not have their own hard-earned cash on the line.…