On August 23, 1971, prior to accepting Nixon's nomination to the Supreme Court, Powell was commissioned by his neighbor,
Eugene B. Sydnor Jr., a close friend and education director of the
US Chamber of Commerce, to write a confidential memorandum titled "Attack on the American Free Enterprise System," an anti-Communist, anti-Fascist, anti-
New Deal blueprint for conservative business interests to retake America for the chamber.
[14][15] It was based in part on Powell's reaction to the work of activist
Ralph Nader, whose 1965 exposé on
General Motors,
Unsafe at Any Speed, put a focus on the auto industry putting profit ahead of safety, which triggered the
American consumer movement. Powell saw it as an undermining of Americans' faith in enterprise and another step in the
slippery slope of
socialism.
[14] His experiences as a
corporate lawyer and a director on the board of
Phillip Morris from 1964 until his appointment to the Supreme Court made him a champion of the
tobacco industry who railed against the growing scientific evidence linking smoking to cancer deaths.
[14] He argued, unsuccessfully, that tobacco companies' First Amendment rights were being infringed when news organizations were not giving credence to the cancer denials of the industry. That was the point where Powell began to focus on the media as biased agents of socialism.
[14]
The memo called for corporate America to become more aggressive in molding society's thinking about business, government, politics and law in the US. It sparked wealthy heirs of earlier American Industrialists like
Richard Mellon Scaife; the
Earhart Foundation, money which came from an oil fortune; and the
Smith Richardson Foundation, from the cough medicine dynasty;
[14] to use their private charitable foundations, which did not have to report their political activities, to join the
Carthage Foundation, founded by Scaife in 1964
[14] to fund Powell's vision of a pro-business, anti-socialist, minimalist government-regulated America as it had been in the heyday of early American industrialism, before the
Great Depression and the rise of
Franklin Roosevelt's
New Deal.
The Powell Memorandum thus became the blueprint of the rise of the
American conservative movement and the formation of a network of influential right-wing
think tanks and lobbying organizations, such as
The Heritage Foundation and the
American Legislative Exchange Council (ALEC) as well as inspiring the US Chamber of Commerce to become far more politically active.
[16][17] CUNY professor
David Harveytraces the rise of
neoliberalism in the US to this memo.
[18][19]
Powell argued, "The most disquieting voices joining the chorus of criticism came from perfectly respectable elements of society: from the college campus, the pulpit, the media, the intellectual and literary journals, the arts and sciences, and from politicians." In the memorandum,
Powell advocated "constant surveillance" of textbook and television content, as well as a purge of left-wing elements. He named consumer advocate Nader as the chief antagonist of American business. Powell urged
conservatives to take a sustained media-outreach program; including funding scholars who believe in the free enterprise system, publishing books and papers from popular magazines to scholarly journals and influencing public opinion.
[20]
This memo foreshadowed a number of
Powell's court opinions, especially First National Bank of Boston v. Bellotti, which shifted the direction of First Amendment law by declaring that corporate financial influence of elections by independent expenditures should be protected with the same vigor as individual political speech. Much of the future Court opinion in
Citizens United v. Federal Election Commissionrelied on the same arguments raised in
Bellotti.