William E. Simon

William E. Simon
Official portrait, 1977
William E. Simon
Born	William Edward Simon 27 11, 1927
Birthplace	Paterson, New Jersey, U.S.
Died	Template:Death date and age Santa Barbara, California, U.S.
Nationality	American
Occupation	Businessman, government official, philanthropist
Known for	63rd United States Secretary of the Treasury; Director of the Federal Energy Office; President of the United States Olympic Committee
Spouse(s)	Template:Plainlist
Awards	Jefferson Award for Public Service

William Edward Simon (November 27, 1927 – June 3, 2000) was an American businessman, government official, and philanthropist who served as the 63rd United States Secretary of the Treasury from 1974 to 1977. Born in Paterson, New Jersey, Simon rose from modest origins to become a prominent figure on Wall Street before entering public service during one of the most turbulent periods in modern American political history. He first came to national attention as the director of the Federal Energy Office during the 1973 oil crisis, where he was tasked with managing the country's response to severe energy shortages. He then served as Secretary of the Treasury under Presidents Richard Nixon and Gerald Ford, navigating the economic challenges of the mid-1970s, including stagflation, rising unemployment, and the aftermath of the Watergate scandal. After leaving government, Simon returned to the private sector and achieved considerable success in business and investment. He also became a prominent advocate of free-market economics and laissez-faire capitalism, articulating his views in influential books and public statements. His philanthropic endeavors, carried forward by the William E. Simon Foundation, supported causes in education, public policy, and the arts. He served as president of the United States Olympic Committee from 1981 to 1985 and was a recipient of the Jefferson Award for Public Service.

Early Life

William Edward Simon was born on November 27, 1927, in Paterson, New Jersey, an industrial city in the northeastern part of the state. He grew up during the years of the Great Depression, an experience that shaped his later views on economics and the role of government in American life. Paterson, once a major center of American manufacturing, was particularly hard hit by the economic downturn of the 1930s, and Simon's formative years were marked by the economic hardships that affected many working-class families in the region.

Simon attended local schools in New Jersey during his youth. He developed an early interest in competitive pursuits, which would later manifest in both his business career and his involvement with the Olympic movement. The values of self-reliance and industriousness that characterized his upbringing in a New Jersey working-class community remained central to his worldview throughout his life.

As a young man, Simon served in the United States Army, fulfilling his military obligations before pursuing higher education and a career in finance. His military service provided him with discipline and organizational skills that would prove valuable in his subsequent career in both the private and public sectors.

The township of Harding, in Morris County, New Jersey, later became associated with Simon as a place of residence. The community, known for its rural character and large residential properties, attracted a number of prominent business figures during the latter half of the twentieth century.

Education

Simon pursued higher education at Lafayette College in Easton, Pennsylvania, where he studied and earned his undergraduate degree. Lafayette College, a private liberal arts institution founded in 1826, later honored Simon's connection to the school through various institutional recognitions, including materials preserved in the college's academic museum documenting his life and career. His education at Lafayette provided the intellectual foundation for his subsequent career in finance and public policy. The college would remain an institution with which Simon maintained a lifelong connection, and his philanthropic activities later extended to supporting educational institutions.

Career

Wall Street Career

After completing his education, Simon embarked on a career in the financial services industry. He entered the world of Wall Street, where he built a reputation as a skilled bond trader and investment banker. Over the course of his career in finance, Simon developed expertise in government securities and municipal bonds, areas that required deep knowledge of both financial markets and government fiscal policy. His success on Wall Street brought him to prominence within the financial community and eventually attracted the attention of political figures seeking individuals with strong financial acumen for government service.

Simon's experience in the bond markets gave him a thorough understanding of government debt, interest rates, and the mechanics of fiscal policy—knowledge that would prove directly relevant to his later roles in the Nixon and Ford administrations. His career on Wall Street also provided him with the personal wealth that would later enable his extensive philanthropic activities.

Deputy Secretary of the Treasury

In January 1973, Simon was appointed Deputy Secretary of the Treasury under President Richard Nixon, serving under Secretary George Shultz. His appointment reflected the Nixon administration's desire to bring individuals with private-sector financial expertise into senior government positions. As Deputy Secretary, Simon gained direct experience with the formulation and implementation of federal economic policy during a period of significant economic uncertainty.

Simon's tenure as Deputy Secretary coincided with a period of growing economic instability in the United States, characterized by rising inflation, increasing budget deficits, and the beginning of the energy crisis that would dominate American economic life in the mid-1970s. His performance in this role demonstrated his capacity for managing complex policy challenges and positioned him for greater responsibilities within the administration.

Director of the Federal Energy Office

On December 4, 1973, in the midst of the 1973 oil crisis triggered by the Organization of Arab Petroleum Exporting Countries (OAPEC) oil embargo, President Nixon appointed Simon as the first director of the newly created Federal Energy Office (FEO). Simon succeeded John Love, who had served as the energy policy coordinator, in overseeing the federal government's response to the energy crisis. The FEO was established to coordinate the government's efforts to manage fuel shortages, allocate petroleum supplies, and develop both short-term and long-term energy policies.

The role placed Simon at the center of one of the most pressing domestic crises of the era. American consumers faced long lines at gasoline stations, heating oil shortages threatened the welfare of residents in colder states, and the economic repercussions of sharply rising energy prices rippled through every sector of the economy. Simon was tasked with implementing fuel allocation programs, managing emergency petroleum reserves, and communicating the government's energy policies to a public increasingly frustrated by shortages and price increases.

Simon's approach to the energy crisis reflected his free-market orientation. While he oversaw the implementation of emergency allocation measures necessitated by the severity of the crisis, he expressed skepticism about price controls and government intervention in energy markets, arguing that market mechanisms would ultimately prove more effective in balancing supply and demand. His time at the FEO lasted until May 9, 1974, when he was elevated to the position of Secretary of the Treasury, and he was succeeded as energy chief by John C. Sawhill.

Secretary of the Treasury

William E. Simon was sworn in as the 63rd United States Secretary of the Treasury on May 9, 1974, succeeding George Shultz in the position. His appointment came during an exceptionally difficult period for both the Nixon administration and the American economy. The Watergate scandal was reaching its climax, and Nixon would resign the presidency just three months later, on August 9, 1974. Simultaneously, the United States economy was grappling with a phenomenon that economists had previously considered unlikely—stagflation, the simultaneous occurrence of high inflation, rising unemployment, and sluggish economic growth.

Upon Nixon's resignation, Simon was reappointed to his position by President Gerald Ford and continued to serve as Secretary of the Treasury throughout the Ford administration, remaining in office until January 20, 1977, when President Jimmy Carter took office. His continuity in the position provided a measure of stability in economic policymaking during a period of political upheaval.

As Secretary of the Treasury, Simon was one of the most senior economic advisors in the administration and played a central role in shaping fiscal policy. He advocated for fiscal discipline, spending restraint, and reduced government intervention in the economy. His tenure was marked by persistent economic challenges, including the severe 1973–75 recession, which saw unemployment rise above eight percent while inflation remained at elevated levels. The traditional tools of economic management—stimulative spending to combat unemployment and contractionary policy to fight inflation—seemed to work at cross purposes in the stagflationary environment, presenting policymakers with difficult tradeoffs.

Simon also oversaw Treasury Department operations related to international economic affairs, including the management of the dollar's position in international currency markets during a period of continued adjustment following the end of the Bretton Woods system in 1971. The floating exchange rate regime that replaced the fixed-rate system introduced new complexities into international economic management, and Simon was involved in multilateral negotiations on currency and trade matters.

Throughout his time as Secretary, Simon maintained his commitment to free-market principles. He opposed what he viewed as excessive government regulation and spending, arguing that the private sector, operating under market discipline, was better positioned than the government to allocate resources efficiently and generate economic growth. These views sometimes placed him in tension with members of Congress and other officials who favored more interventionist approaches to the economic challenges of the period.

Post-Government Business Career

After leaving the Treasury Department in January 1977, Simon returned to the private sector, where he built a second career as a businessman and investor. He became involved in various business ventures and investment activities, leveraging the expertise and connections he had developed during his years on Wall Street and in government. Simon's business activities after government service were marked by substantial success, and he became one of the more prominent figures in American business during the 1980s and 1990s.

Simon's approach to business reflected the same free-market philosophy that had guided his public service. He was particularly active in leveraged buyout transactions and other investment activities that characterized the dynamic financial landscape of the 1980s. The Simon family's approach to managing wealth and business interests later became a subject of interest in the financial press, with the family's office-based approach to investment management receiving attention as a model for wealthy families.

Author and Public Intellectual

Beyond his business activities, Simon became a prominent public voice for free-market economics and limited government. He authored books articulating his economic philosophy, in which he argued for the superiority of the capitalist system over government-directed economic management. Simon stated his fundamental belief directly: "There is only one social system that reflects the sovereignty of the individual: the free-market, or capitalist, system." His writings contributed to the broader intellectual movement in favor of market-oriented economic policies that gained influence in American political life during the late 1970s and 1980s.

Simon's advocacy for laissez-faire capitalism placed him within a tradition of American conservative economic thought that included figures such as Milton Friedman and Friedrich Hayek. He argued that government intervention in the economy, however well-intentioned, tended to produce inefficiencies, distortions, and unintended consequences that ultimately harmed the very people such intervention was intended to help. These views informed not only his public writings and speeches but also his philanthropic activities, which frequently supported institutions and organizations promoting free-market economics and limited government.

United States Olympic Committee

In 1981, Simon was elected president of the United States Olympic Committee (USOC), a position he held until 1985, succeeding Robert Kane and later being succeeded by Jack Kelly Jr. His tenure at the USOC came during a period of significant political complexity in international sports, following the United States-led boycott of the 1980 Summer Olympics in Moscow and preceding the 1984 Summer Olympics in Los Angeles. Simon's leadership of the USOC involved managing the organization's finances, overseeing the preparation of American athletes for international competition, and navigating the intersection of sports and geopolitics that characterized the Olympic movement during the Cold War era.

The 1984 Los Angeles Olympics, which took place during Simon's presidency of the USOC, were notable as the first Olympic Games to be organized on a primarily private-enterprise basis, generating a surplus rather than the deficits that had burdened previous host cities. The success of the American team at the 1984 Games, boosted in part by the retaliatory boycott by the Soviet Union and most of its allies, was a source of national pride, and Simon's stewardship of the USOC during this period was recognized as effective.

Personal Life

William E. Simon married Carol Girard in 1950, and the couple remained married until her death in 1995. Together they had several children. Simon later married Tonia Adams. The Simon family maintained residences in several locations, including in Harding Township, New Jersey, a community in Morris County known for its pastoral setting and large estates.

Simon was a member of the Republican Party throughout his political career. His political philosophy centered on limited government, individual liberty, and free-market capitalism—principles he advocated in both his public service and his private life.

William E. Simon died on June 3, 2000, in Santa Barbara, California, at the age of 72. He was interred at Laurel Grove Memorial Park. His death was noted widely in the press as the passing of a figure who had played a significant role in American economic policy during a critical period in the nation's history.

Philanthropy

Simon dedicated significant resources to philanthropic endeavors throughout his post-government career. His charitable activities spanned a wide range of causes, including education, public policy research, and the promotion of free-market economic principles. The William E. Simon Foundation was established to formalize and perpetuate his philanthropic commitments, and it continued to support causes aligned with Simon's values after his death.

Simon's philanthropic philosophy was closely connected to his economic beliefs. He directed substantial support toward organizations and institutions that promoted free enterprise, individual responsibility, and limited government. His giving also extended to educational institutions, including Lafayette College, his alma mater, and to cultural and community organizations.

The Philanthropy Roundtable recognized Simon's contributions to charitable giving by inducting him into its Hall of Fame, acknowledging the scope and impact of his philanthropic activities over several decades. The William E. Simon Foundation has continued to operate as an active grantmaking institution, supporting causes in education, the arts, and public policy.

Recognition

William E. Simon received numerous honors and awards during his career in recognition of his contributions to public service, business, and philanthropy. Among the most notable was the Jefferson Award for Public Service, which recognized his contributions to the nation through both his government service and his philanthropic activities.

His induction into the Philanthropy Roundtable's Hall of Fame recognized his sustained commitment to charitable giving and his influence on the practice of American philanthropy. Lafayette College, his alma mater, preserved materials related to his life and career in its academic museum, reflecting the significance of his achievements in the context of the college's history.

Simon's career was also documented in the American National Biography, a comprehensive biographical reference work published by Oxford University Press under the auspices of the American Council of Learned Societies, further attesting to his recognized significance as a historical figure in American public life.

Legacy

William E. Simon's legacy encompasses his roles as a government official, businessman, author, and philanthropist. His tenure as Secretary of the Treasury during the economic turmoil of the mid-1970s placed him at the center of debates over economic policy that continued to shape American political discourse for decades. His advocacy for free-market economics and fiscal discipline anticipated the broader shift toward market-oriented policies that characterized American economic governance in the 1980s and beyond.

The William E. Simon Foundation has continued to operate as a significant force in American philanthropy, carrying forward the causes and principles that Simon championed during his lifetime. Through its grantmaking activities in education, public policy, and the arts, the foundation has perpetuated Simon's commitment to supporting institutions that promote free enterprise and individual liberty.

Simon's writings on economics and public policy contributed to the intellectual foundation of the modern conservative movement in the United States. His articulation of the case for laissez-faire capitalism, grounded in his practical experience in both the financial markets and government, provided a perspective that combined theoretical conviction with real-world knowledge of how economies function.

His leadership of the United States Olympic Committee during the politically charged Olympic cycles of the early 1980s demonstrated his capacity for organizational leadership beyond the realms of finance and government. The successful 1984 Los Angeles Olympics, which occurred during his presidency of the USOC, represented a high point in the American Olympic movement.

In the broader context of American history, Simon's career illustrates the movement between the private sector and government service that has characterized many prominent figures in American public life. His trajectory from Wall Street to the Treasury Department and back to the private sector, combined with his sustained philanthropic commitments, established a model of public engagement that influenced subsequent generations of business leaders and policymakers.