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Difficulty: EasyPolitical Realignment, Watergate, and Rise of Conservatism

Lewis F. Powell Jr., memorandum to the U.S. Chamber of Commerce, "Confidential Memorandum: Attack on American Free Enterprise System," August 23, 1971:

"No thoughtful person can question that the American economic system is under broad attack. This varies in scope, intensity, in the techniques employed, and in the level of visibility. But there always is a common theme��acid criticism of the system itself, its institutions, its values, its history... The most disquieting voices joining the chorus of criticism come from perfectly respectable elements of society: from the college campus, the pulpit, the media, the intellectual and literary journals... The business community has been remarkably slow in recognizing this, and even slower in responding. The time has come—indeed, it is long overdue—for the wisdom, ingenuity and resources of American business to be marshaled against those who would destroy it."

The arguments expressed in the excerpt most directly contributed to which of the following developments?

  1. The mobilization of business leaders and conservative organizations to influence public policyAnswer
  2. B
    The adoption of government spending policies designed to stimulate consumer demand
  3. C
    The direct expansion of military containment strategies to protect foreign business markets
  4. D
    The establishment of federal welfare programs to reduce poverty in urban areas

Answer

The mobilization of business leaders and conservative organizations to influence public policy
The correct answer is correct because the Powell Memo served as a major catalyst for the political mobilization of American corporations. During the 1970s and 1980s, business leaders increasingly organized political action committees, financed conservative think tanks like the Heritage Foundation, and established advocacy groups like the Business Roundtable to actively influence public policy and combat regulations.

Step-by-Step Solution

1
Analyze the source text to identify the author's primary argument and target audience.
The author argues that the American free enterprise system is under domestic attack from intellectuals, media, and colleges, and calls on the business community to organize and marshal resources in defense of capitalism.
This establishes the core purpose and context of the primary source stimulus.
2
Connect the document's call to action to historical developments in the 1970s and 1980s.
Following this memorandum, corporate leaders significantly increased funding for conservative think tanks, legal foundations, and lobbying organizations (such as the Heritage Foundation and the Business Roundtable) to shape legislation.
This links the intellectual call to action to actual political realignment and organizational behavior.
3
Evaluate the choices to determine which option reflects the historical outcome of business mobilization.
The option stating that it led to the mobilization of business leaders and conservative organizations to influence public policy is the correct choice.
This matches the historical record of the corporate and conservative counteroffensive in the late 20th century.

Key Concept

The mobilization of conservative and business organizations to influence public policy and counter liberal reforms in the late 20th century.
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Topics

Political Realignment, Watergate, and Rise of Conservatism

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