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theses

The early 1970s saw a series of events that led to significant changes to the US economy. The year 1971 marked the end of the Bretton Woods global monetary system. 1973 was the start of the Arab oil embargo. 1974 marked the beginning of a deep recession and the start of high inflation that would dominate the decade. These events were the catalysts for change that would start to move the US from a mixed Keynesian economy to a more aggressively capitalist economy that was characterized by tax cuts, deregulation and military spending. This study is an examination of the ideas, policies and issues that led to this change. It argues that while elites in business, finance and politics argued for policies based on free markets, free trade and unfettered capitalism, the policies in fact worked to strengthen the influence and wealth of these elites. One of the main driving forces of this push for capitalism was the newly emerging conservative think tanks of the 1970s. Without these think tanks, conservatives could not have created the positive messages and perception of the policies they were able to sell to the American public. Think tanks exerted influence through the books, journals and reports they published. They pushed their message in Congress and in the media where they positioned themselves as defenders fighting liberal excess, big government and a social welfare state. They created a powerful connected network that advocated for what seemed like useful ideas in a time of economic trouble. The changes to capitalism in the 1970s and early 1980s was driven by think tanks whose funding came from wealthy donors who sought to exert their influence over the US economic and political system. This study explains how Conservatives won the war of ideas with a version of capitalism that had little to do with free markets. It shows how their success would not have been possible without conservative think tanks. Finally, it identifies the winners and losers in this battle that started 40 years ago and continues today.

ETD_5654

M.A.

Includes bibliographical references

Includes vita

by Eugene F. Smith

doi:10.7282/T3BP012D

ETD graduate

The author owns the copyright to this work.