Powell Memorandum: Attack On American Free Enterprise System
Overview & Context
In this influential 1971 memorandum, Lewis F. Powell Jr.—soon to be nominated to the U.S. Supreme Court—warned the U.S. Chamber of Commerce of a growing “attack” on the American free enterprise system from intellectuals, the media, and political institutions.
📌 Key Arguments
- Powell asserts that business and capitalism are under siege from leftist academics, media outlets, and activist organizations.
- He accuses institutions of higher education and public discourse of producing a climate hostile to business.
- He calls on American businesses to become more organized, proactive, and aggressive in shaping policy, public opinion, and academia.
🧠 Strategic Recommendations
- Influence education by monitoring textbooks and curricula.
- Monitor and challenge the media for anti-business bias.
- Fund legal centers and think tanks to develop pro-business legal and political arguments.
- Establish a permanent and coordinated strategy for corporate advocacy across all levels of government and culture.
🏛️ Lasting Impact
- The Powell Memo is often credited as a blueprint for the rise of conservative think tanks, such as the Heritage Foundation, and legal societies like the Federalist Society.
- It helped catalyze a decades-long realignment of corporate America’s relationship to politics, leading to more overt political activism and lobbying by business interests.
“The overriding first need is for businessmen to recognize that the ultimate issue may be survival — survival of what we call the free enterprise system.”
📚 Citation
Powell, L. F. Jr. (1971, August 23). Attack on American Free Enterprise System: The Memo. Washington and Lee University School of Law. Retrieved from https://scholarlycommons.law.wlu.edu/powellmemo/1
OpenAI. (2025). Summary of the Powell Memorandum. Generated by ChatGPT (GPT‑4). Retrieved from chat.openai.com