Democracy Is Collapsing: This 1971 Playbook Started It All

by Joel Wong

Lewis Powell’s 1971 memo transformed the U.S. into a corporate-dominated political system, where money shapes policy and public interest takes a backseat. The pro-business policies and judicial rulings inspired by Powell continue to influence today’s political landscape, fostering wealth inequality and eroding democratic representation. His legacy serves as a stark reminder of how corporate influence can reshape a nation’s democracy.

In 1971, Lewis F. Powell Jr., a corporate lawyer who later became a U.S. Supreme Court Justice, authored a confidential memo titled “Attack on the American Free Enterprise System“. This memo became a blueprint for corporate America to expand its influence over politics, media, academia, and the judiciary. Powell warned that growing anti-business sentiment and progressive activism threatened free enterprise. To counter this, he advocated for greater corporate involvement in politics, control over public discourse, and influence in educational institutions.

The Powell Memo’s Impact on Corporate Power: Powell’s memo inspired the creation of powerful think tanks and lobbying groups, such as the Heritage Foundation, Cato Institute, and Business Roundtable. These organizations promoted free-market policies, deregulation, and tax cuts, shaping conservative policy platforms. Their influence became particularly pronounced during Ronald Reagan’s presidency, ushering in an era of Reaganomics and business-friendly governance.

Judicial Influence: The Fight for Corporate Rights: As a Supreme Court Justice, Powell cemented his pro-corporate stance. In 1978, he authored the majority opinion in First National Bank of Boston v. Bellotti, which allowed corporations to spend on political campaigns, paving the way for the 2010 Citizens United ruling. This decision unleashed unlimited corporate spending in elections, significantly tilting the political system in favor of wealthy donors.

Media and Academia: Shaping Public Opinion: Powell’s call for corporate influence over media and academia bore fruit. Corporate-funded think tanks and media outlets shaped public discourse, while business-backed academic programs promoted free-market ideologies. Organizations like the Koch Foundation funded university curricula that aligned with corporate interests, weakening opposition to neoliberal policies.

The Rise of Corporate Power and Wealth Inequality: The widespread influence of Powell’s memo has contributed to a modern oligarchy, where corporate lobbying, campaign financing, and judicial influence dominate U.S. politics. This has led to:

Net Results:

Weakened campaign finance laws, allowing billionaires and corporations to control political narratives.
Deregulation and reduced oversight, favoring corporate profits over public welfare.
Rising wealth inequality, as policies increasingly benefit the wealthy elite.