Before ALEC and the Heritage Foundation’s Project 2025, There Was the Powell Memo

What does the GOP MAGA ex-president bring to the table that makes US elected officials in the republican party succumb to all his demands while enabling him in all his outlandish shenanigans as he vies to become the next US president despite his very flawed character?

What Trump brings to the table, is his grievance affinity with working blue collar class folks that has added lots of new voters to the GOP MAGA coalition and allows the GOP party to be more competitive. These folks have every right to be outraged at their economic stagnation for over 50 years because of business CEOs’ decisions and for governmental blindness/ failure to act to correct for corporate decisions with negative consequences. What Trump does to court their favor by blaming minority (take your pick) for US workers’ lower economic standards declining for over 4 decades, is what’s wrong.

VP Harris gets this. POTUS Biden got this. That’s why their policies are so Lazer focused on lifting up the middle class and the essential working folks who simply want a fair share of the pie as US business production levels experience record breaking improvements.

1978-2015
1978-2015

In 1970’s, major corporations offered a secure pension plan that an employee could count on to cushion them from financial hardships in their old age. Now employer funded pension plans have gone the way of the dodo bird. Before 1980s, when US business productivity numbers improved, the workers accrued corresponding pay raises that reflected their value and contribution. But post 1980s, blue collar manufacturing jobs suffered permanent closures and laborers’ wages have remained stagnant for over 4 decades, no matter how much corporate productivity/ profits increased. After 1978, CEO / top level executive earnings increased by over 1,460% (as per the Economic Policy Institute).

One major change that happened in 1982 is when it became legal for companies to repurchase their shares on the open market pretty much whenever they wanted. The wellbeing of employees and consumers became a far lesser concern than corporate executives wanting to cater to their shareholders. There needs to be some restrictions on companies being permitted to repurchase (buy-backs) stocks.

I contend that the catalyst for some major big business executives taking a hard line against wage increases for laborers, the promotion of anti-union laws, the lobbying of legislators for more pro-business laws began with the 1971 Powell memo. Lewis Powell, an attorney for tobacco companies like Philip Morris, and who later became a Supreme Court justice could have written the GOP MAGA Project 2025 manifesto of today, and the negative consequences of his influence are reflected in the ultra-right wing pro-business leaders who’re in favor of the USA government becoming an autocracy in 2025.

As per the August 20, 2021 Slate article by Nitish Pahwa, “Lewis Powell memo: notes to the Chamber of Commerce:” …

“In the early 1970s, American corporate executives were in a state of panic. From the Great Depression through the social movements of the 1960s, mass popular and institutional outrage had arisen against their companies’ sins, including discrimination and toxic pollution. Even conservative, business-friendly Richard Nixon was signing legislation that added more regulation of corporate practices.”

The education director for the national Chamber of Commerce, Eugene B. Sydnor Jr., wanted a plan of action to counter these forces, and he reached out to a good friend to draw that up: Lewis Powell, then the head of the American Bar Association, an attorney for tobacco companies like Philip Morris, and a rumored Supreme Court nominee. Powell himself had faced down movements that were hostile to his clients, including anti-tobacco initiatives that flourished after scientists began linking smoking and cancer.”

A cool guide to Project 2025 : r/coolguides

In 1971, Powell wrote a lengthy, confidential memo to Sydnor and the Chamber, titled “Attack on American Free Enterprise System,” outlining ways that corporations could band together not only to fight off regulations but also to infiltrate American institutions—universities, publishers, magazines, ad agencies, TV networks, and even courts—to make them more broadly sympathetic to business. The tone of the prose indicates that this was a personal venture for Powell: “The time has come—indeed, it is long overdue—for the wisdom, ingenuity and resources of American business to be marshalled against those who would destroy it.”

Fifty years later, that vision has come to pass. A right-wing dark money network, financed over the decades by magnates from Bryce Harlow to Richard Mellon Scaife to Joseph Coors, has funded think tanks, media outlets and writers, college programs, legal organizations, and politicians dedicated to advancing pro-business causes. As journalists like Jane Mayer have documented, the strategy has worked all too well: Megacorporations now enjoy fewer regulations, lower taxes, more lobbyists, more businesspeople in power, and the ability to impede policy perceived as hurting their bottom line, whether that be related to climate protections or health care reform.”

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Many of the leaders of this counterinsurgency were directly inspired by Powell’s memo, as it was circulated among Chamber of Commerce members and other CEOs. It went public in 1972 after its author had been appointed to the Supreme Court, and inspired the establishment of various pro-business organizations and institutions that still hold major influence today, from the (ALEC) American Legislative Exchange Council to the Manhattan Institute. It’s clear, reading the hectoring language in the memo and the detailed steps it requires for Big Business to take the power back, that Powell—who would go on to serve as a Supreme Court justice for 16 years—helped lay the ideological groundwork for our current politics.”

Read: POTUS Biden Is Working to Lift Up All Including GOP MAGAs/ ALEC Explained

As per July 25, 2017 Business Insider article by Linette Lopez, “What Happened to American Jobs in the 80s:

Back to the Reagan era.

“The adverse impact of Japanese competition on US employment became particularly harsh in the double-dip recession of 1980-1982 when large numbers of good blue-collar jobs disappeared from US industry, as it turned out permanently (Bednarzik 1983).

“Previously, in a more stable competitive environment, US manufacturing companies would lay off workers with the least seniority in a downturn and re-employ them when economic conditions improved. Now companies were more likely to shutter whole plants (Harris 1984; Hamermesh 1989).

“From 1980 to 1985 employment in the US economy increased from 104.5 million to 107.2 million workers, or by 2.6 percent. But employment of operators, fabricators, and laborers fell from 20.0 million to 16.8 million, a decline of 15.9 percent (US Department of Commerce 1983, 416; and 1986, 386).”

“Industries like consumer electronics, automobiles, machine tools, steel and microelectronics were all hit especially hard by Japan’s advancement.”

“Most never recovered. Some companies disappeared from the face of the earth, like consumer electronics maker RCA. In 1981 it was a global leader, by 1986 it was bought by GE and then chopped up and sold for parts.”

“It started in the 1980s, when Ronald Reagan — a hero of the Trump administration — was president, and neoliberal economics were first making their mark on policy. Reagan and his ilk distrusted government and believed that the private sector could make the best decisions when left on its own. You’ve heard about this — it’s called laissez faire economics.”

“This ideology ultimately led to the financialization of the US corporation — the process of putting shareholders first, often at the expense of workers and consumers — and its emergence as an actor that takes resources from the economy rather than creating them. This, combined with a government zeal for lowering taxes rather than spending, means no one — not the government, and not the private sector — is investing enough in America to keep the economy strong across social classes.”

If the red states and the blue states were separated into two countries, which country would be more successful? Why? - Quora

“In short: Government cuts and changes in how corporations operate mean American workers are getting screwed by their own government and their own employers.”

“The shareholder became the main thing for a company to worry about. Employees lost their status. Companies feared getting attacked, so they bent over backward to mollify the former at the expense of the latter. (In 1982 it became legal for companies to repurchase their shares on the open market pretty much whenever they wanted. Previously, the SEC had considered this a form of stock price manipulation.) These new stock repurchasing rules, for one thing, allowed them to shore up their defenses by buying back stock. But, of course, that meant spending money that could’ve gone to innovate, invest in new technology and equipment, or reward workers.”

“That’s when Lazonick says the financialization of the American corporation began in earnest, and blue-collar workers were left behind by corporate America and the government alike:”

Red State Socialism : PoliticalHumor

“As secure middle-class jobs for high-school-educated blue-collar workers permanently disappeared, there was no commitment on the part of those who managed US industrial corporations or the Republican administrations that ruled in the 1980s to invest in the new capabilities and opportunities required to upgrade the quality and expand the quantity of well-paid employment opportunities in the United States on a scale sufficient to re-establish conditions of prosperity for these displaced members of the US labor force.”

Reagan’s mission was to cut the budget — which meant not spending money investing in the future of these workers. In the decades after this process started, manufacturing workers would find their numbers diminishing as corporations sought ways to please shareholders, and the government sought ways to lower taxes and deregulate the private sector.

No one had their backs.

7 comments

  1. Do me a favour, please, Gronda. Rewrite this post so a Grade 5 person could understand it. Get rid of the big words, the complex ideas, the huge numbers people who are 10 years old cannot understand. Pretend you are trying to teach this to your great-granddaughter.
    That is the educstion level of many of the citizens of Red States. You want them to understand how they are being screwed by their political leaders, you need to reach them at their level of understanding. This is s reality of the New America.

    Liked by 2 people

    • Hi! You made a great suggestion. Unfortunately, GOP MAGA Trumpers aren’t likely to read my posts or any other analysis with similar arguments.

      It’s a sad state of affairs because if the GOP MAGA ex-president were to win the presidency, blue collar workers’ economic wellbeing will suffer. Major companies like Goldman Sachs are openly stating this reality. But the GOP MAGA voters have allowed themselves to be convinced, otherwise.

      Hugs, Gronda

      Like

      • Ah, they might not read you, but I think people will reblog it, and re-reblog it. Somewhere someone will read it will put it on a MAGA website, even if only to ridicule you. All it takes is opening one mind, and others will follow.
        I did not invent this idea, I learned it in my BSW course in university. “Write to the audience you want to reach!”

        Liked by 1 person

        • Hi!

          Thanks for the support. I’ve been commenting on numerous New York Times and Washington Post articles to counter the obvious GOP MAGA talking points.

          I tried to do a video on TikTok, but I wouldn’t want folks to see it.

          Trump’s economic plans are really bad for working folks. His plans include adding a 20% tariff on all goods imported from foreign countries and a 60% tariff on products from China. This ends up being an invisible tax paid for by American consumers because as companies have to pay more, they just pass on the increased costs in the form of increased price tags. But he thinks he can get away with this tactic because the purchaser doesn’t see that he/ she is paying extra because of tariffs.

          Hugs, Gronda

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  2. Based on my conversations with others, they are not concerned with the how and when. They simply want to pay their bills, eat, and have a nest egg for emergencies. There is history as to why college degrees came into demand for employment, and it is directly connected to the government wanting to exclude certain people from employment. In the 1970’s, you could work next to someone who earned more for doing the same job. Companies justified the pay differences based on the co-worker having a high school diploma. Dr. King highly promoted the need for a high school diploma. As more minorities achieved that goal, companies moved the goal post. If an employee had an Associates degree, they were paid more for doing the same job as a person with a high school diploma. As more minorities earned Associate degrees, the goal post was raised again –to qualify for employment required a Bachelor’s degree.

    Tuition increased to deprive the poor of attending 4 year colleges. Then came student loans.

    What man set-up to deprive some of equal pay and decent employment backfired on the entire country.

    It comes as no surprise that Project 2025 wants to remove public education. Only those families able to afford private schools will have the benefit of education and that also means the benefit of employment. Can we see what Trump truly meant when saying “Black jobs”? Yes. Making America great “again” is to return to the days of slavery and oppression. It’s a return where only White men who own property are allowed to vote. It keeps them in power.

    Can we also now see what Trump really means when he promotes that the states making their own laws regarding women’s rights to choose? The states making their own laws was something that was decided to end the Civil War — but it took a Constitutional Amendment to keep the states from making laws making slavery legal.

    The Confederacy lost the battle, but they won the war because they won the narrative. Project 2025 is intended to return the United States to pre-Civil war conditions; forbidding certain people from being taught to read and write; to freely travel; to be paid for working; deprived health care by qualified physicians; from having income for retirement; from owning property.

    Liked by 2 people

    • Hi Xena,

      It’s great to hear from you and I pray that you’re doing okay.

      Your points are right on. It was the Trayvon Martin case that exposed for me the virulent strain of racism that permeated the Republican Party and influenced policy. It continues today. What they don’t get is that by hurting others, they end up doing harm to themselves. The GOP MAGA ex-president is counting on racism in the form of outrageous claims like Haitians in Springfield, Ohio are eating pets to win in the 2024 US presidential elections.

      Karma is coming. I don’t want to count my chickens yet, but won’t it be great when the GOP MAGA ex-president loses to VP Kamala Harris, a woman of color who’s competent, decent and who will comport herself on the international stage, in a way that will make us all proud.

      Hugs, Gronda

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