The jury returned guilty verdicts against Ken Lay and Jeff Skilling today. I didn’t follow the case closely, but businesspeople who engage in fraud should obviously be punished. I do fear that the publicity surrounding this case will reinforce the misguided notion that federal prosecutors should be policing the business world. Cato’s new book, Trapped, shows that federal intervention will result in far more harm than good.
For those who would rather listen, than read, Prof. John Hasnas, author of Trapped, delivered an address here at Cato last month.
For still more background, go here.