The Lewis Powell Memo of 1971

The Lewis Powell Memo, formally titled “Attack on American Free Enterprise System,” was a confidential memorandum written by Lewis F. Powell Jr. on August 23, 1971, The memo was addressed to Eugene B. Sydnor Jr., chair of the Education Committee of the U.S. Chamber of Commerce. It outlined a strategy for the business community to respond to what Powell perceived as increasing attacks on the free enterprise system by critics in government, media, academia, and other spheres. The memo was delivered to President Nixon who then met with Powell soon after appointed him to the Supreme Court October 21, 1971. 

The late 1960s and early 1970s were marked by significant social upheaval, including civil rights movements, anti-Vietnam War protests, and growing skepticism toward corporate power.  Powell believed that these movements, combined with regulatory policies, threatened the foundational principles of capitalism and free enterprise in the United States. Powell viewed the growing influence of consumer advocates like Ralph Nader, environmental activists, and labor unions as a direct challenge to corporate interests. 

The memo laid out a comprehensive plan for the business community to defend and promote free enterprise. Powell warned that the business community faced a broad, systemic assault from critics who questioned capitalism’s morality, social responsibility, and benefits to society. He cited universities, media, the judiciary, and legislative bodies as sources of criticism that required immediate and organized counteraction. Powell argued that the U.S. business community had failed to effectively defend itself against criticism and needed to become more proactive in shaping public opinion, policy, and culture. He called for a “sustained and massively funded effort” to promote pro-business values and combat anti-business rhetoric. 

The memo proposed several key initiatives for the Chamber of Commerce and the broader business community, to counter any opposition to corporate interests. 

• Influencing Education: Develop pro-business curricula and provide scholarships and fellowships to pro-capitalist scholars. Increase funding for university programs and research promoting free market principles.  

• Media and Communications: Monitor and challenge media outlets perceived as hostile to business. Fund public relations campaigns to highlight the benefits of free enterprise. 

• Legal Strategy: Establish and support a network of lawyers dedicated to defending business interests in court. Encourage businesses to participate in judicial appointments to influence the legal system. 

• Political Lobbying: Expand lobbying efforts to influence legislation favorable to business. Create think tanks and policy organizations to generate research and proposals supportive of corporate interests. 

• Grassroots Mobilization: Engage employees, shareholders, and consumers in advocacy efforts to promote pro-business policies. 

The Powell Memo is widely regarded as a catalyst for the organized political activism of corporate America in the late 20th century. It directly influenced growth of corporate and industrial think tanks, organizations like the Heritage Foundation, American Enterprise Institute, and Cato Institute expanded significantly in the years following the memo’s publication, promoting pro-business policies. 

The memo encouraged businesses to become more active in lobbying and political campaign financing, laying the groundwork for the rise of Political Action Committees (PACs) and corporate contributions to elections. The Powell Memo’s ideas influenced deregulatory policies and the pro-business agenda of the 1980s, particularly under President Ronald Reagan. 

Powell viewed the judiciary as both a battlefield and a tool for advancing pro-business interests and countering perceived threats to capitalism. He urged the business community to be proactive in challenging laws, regulations, and policies perceived as harmful to their interests. Powell highlighted the importance of judicial appointments and urged the business community to pay close attention to the selection of judges.He argued that judges who understood and supported corporations would be critical in shaping legal interpretations of issues like regulation, antitrust laws, and corporate rights. Powell suggested that businesses work to influence the appointment process by advocating for candidates sympathetic to their values. 

To build a long-term foundation for legal strategies, Powell proposed investing in legal education that emphasized free enterprise principles. He called for funding law school programs, scholarships, and fellowships to encourage young lawyers to support business interests. He also recommended establishing legal research centers focused on the defense of capitalism and limited government. This legal network of judges and lawyers would be instrumental in influencing the outcomes of cases affecting business and corporate rights. 

Powell understood that judicial decisions could have long-lasting impacts on public policy and economic regulation, often more so than legislation. By utilizing the courts, businesses could both defend against unfavorable policies and proactively create legal precedents to safeguard their interests. Powell’s vision for using the courts as a venue to defend and expand corporate rights has had lasting implications, particularly in the areas of campaign finance, regulatory law, and corporate speech rights. 

Nixon nominated Powell to the U.S. Supreme Court on October 21, 1971 to take his role in executing on the memo’s principles from his new seat on the highest court. The existence of the Powell memo was not known by Senators until long after his confirmation and Lewis Powell Jr. was sworn in as a Supreme Court Justice on January 7, 1972. Powell served on the Court until his retirement on June 26, 1987.