The Business Roundtable and the End of Managerialism

Maher, Stephen

doi:10.1007/978-3-030-83772-3_7

Stephen Maher⁴

Part of the book series: Marx, Engels, and Marxisms ((MAENMA))

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Abstract

This chapter shows how the emergence of the Business Roundtable was rooted in state efforts to address the 1970s crisis. As the crisis of the 1970s dragged on, Nixon, Ford, and Carter implemented a series of wage and price control regimes to restrain wage growth while devising a more permanent strategy for disciplining labor. Yet a plan to do so was forthcoming from neither the state nor business. In this context, new policy planning capacities were rapidly built within and around the state economic apparatus. Connected to these was the Business Roundtable, formed in 1972 with the support of the Treasury Department and the Federal Reserve. While the BR sought to defend non-financial managers from rising investor power, the state’s ability to organize an “unstable equilibrium of compromise” between these fractions was a key factor in enabling the empowerment of finance through the neoliberal restructuring that would follow.

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Notes

1.
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2.
Michael Moran, The Politics of the Financial Services Revolution: The USA, UK and Japan (New York: Palgrave Macmillan, 1991), 43.
3.
Panitch and Gindin, The Making of Global Capitalism, 141–42.
4.
Waterhouse, Lobbying America, 55–60.
5.
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6.
Waterhouse, Lobbying America, 48.
7.
Waterhouse, Lobbying America, 77.
8.
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9.
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10.
“Construction Users Anti-Inflation Roundtable Report,” January 25, 1972.
11.
“Construction Users Anti-Inflation Roundtable Report,” December 7, 1970, 2.
12.
“Construction Users Anti-Inflation Roundtable Report,” February 17, 1971.
13.
Panitch and Gindin, The Making of Global Capitalism, 138–40.
14.
George Romney, “George Romney to President Nixon,” February 14, 1970, Record Group 56, Entry A1 719, Box #3, National Archives College Park, MD.
15.
Paul McCracken, “Memorandum for the President,” February 16, 1970, Record Group 56, Entry A1 719, Box #3, National Archives College Park, MD.
16.
Paul McCracken, “International Monetary Reform,” Memorandum for the President, June 2, 1971, Record Group 56, Entry A1 718, Box #8, National Archives College Park, MD.
17.
Charles Walker, “Charles Walker to George Shultz,” July 9, 1971, Record Group 56, Entry A1 719, Box #2, National Archives College Park, MD.
18.
John Connally, “John Connally to George Shultz,” June 15, 1971, Record Group 56, Entry A1 719, Box #2, National Archives College Park, MD.
19.
Panitch and Gindin, The Making of Global Capitalism, 124.
20.
John Burke, “John Burke to John Connally,” February 19, 1971, Record Group 56, Entry A1 719, Box #1, National Archives College Park, MD.
21.
Gene Bradley, “Gene Bradley to John J. Ehrlichman,” August 17, 1971, Record Group 56, Entry A1 718, Box #8, National Archives College Park, MD.
22.
John Ehrlichman, “Memorandum for Secretary Connally,” August 24, 1971, Record Group 56, Entry A1 718, Box #8, National Archives College Park, MD.
23.
Peter Flanigan, “Memorandum Secretary Connally, Secretary Stans, George Shultz, Paul McCracken, Peter Peterson,” September 17, 1971, Record Group 56, Entry A1 719, Box #3, National Archives College Park, MD.
24.
Waterhouse, Lobbying America, 107.
25.
Waterhouse, Lobbying America, 108–9.
26.
Jackson Grayson, “Memorandum for the Honorable Donald Rumsfeld, Director of the Cost of Living Council,” February 3, 1972, Record Group 56, Entry A1 718, Box #8, National Archives College Park, MD.
27.
Herbert Stein, “Memorandum for the President’s Files: ‘Quadriad Meeting With the President, Camp David, December 8, 1972, 12:00 Noon,’” December 11, 1972, Record Group 56, Entry A1 718, Box #3, National Archives College Park, MD.
28.
Waterhouse, Lobbying America, 118.
29.
Waterhouse, Lobbying America, 92.
30.
“March Group Washington Reps Memo,” April 20, 1972. Quoted in: Waterhouse, Lobbying America, 92.
31.
Waterhouse, Lobbying America, 91.
32.
“March Groups Washington Reps Memo,” April 20, 1972. Quoted in: Waterhouse, Lobbying America, 94.
33.
Waterhouse, Lobbying America, 92.
34.
“Construction Users Anti-Inflation Roundtable Report,” June 1, 1972.
35.
“Construction Users Anti-Inflation Roundtable Report,” May 2, 1972.
36.
“Construction Users Anti-Inflation Roundtable Report,” June 1, 1972.
37.
Waterhouse, Lobbying America, 87.
38.
“Business Roundtable Report,” November 28, 1972.
39.
“Business Roundtable Report,” December 10, 1972.
40.
“Business Roundtable Report,” November 28, 1972.
41.
“Business Roundtable Report,” December 10, 1972.
42.
Arthur Burns, “Arthur Burns to George Schultz,” December 5, 1972, Record Group 56, Entry A1 718, Box #3, National Archives College Park, MD.
43.
Waterhouse, Lobbying America, 119.
44.
Caspar Weinberger, “Caspar Weinberger to George Shultz,” December 8, 1972, Record Group 56, Entry A1 718, Box #5, National Archives College Park, MD.
45.
Waterhouse, Lobbying America, 119.
46.
“Business Roundtable Report,” January 31, 1973.
47.
Waterhouse, Lobbying America, 120.
48.
George Shultz, “Memorandum for the President,” April 11, 1973, Record Group 56, Entry A1 718, Box #5, National Archives College Park, MD.
49.
Shultz, “Memorandum for the President,” April 11, 1973.
50.
“Business Roundtable Report,” May 23, 1973; Waterhouse, Lobbying America, 94.
51.
“Roundtable and March Group in Affiliation Move,” The Business Roundtable Report, May 23, 1973.
52.
Waterhouse, Lobbying America, 120.
53.
“Talking Points for the President, Cabinet Meeting 10/18/73,” October 18, 1973, Record Group 56, Entry A1 718, Box #2, National Archives College Park, MD; “Business Roundtable Report,” September 28, 1973; “Business Roundtable Report,” October 29, 1973.
54.
Waterhouse, Lobbying America, 121.
55.
Peter Flanigan, “‘Meetings with Business Leaders,’ Memorandum for Secretaries Shultz, Schlesinger, Weinberger, Butz, Lynn, General Haig, Melvin Laird, Herbert Stein, Roy Ash, John Love, John Dunlop, William Casey, Paul Volcker,” November 21, 1973, Record Group 489, Entry UD-WW, Box #4.
56.
Frederick Dent, “Frederick Dent to Richard Nixon,” November 2, 1973, Record Group 56, Entry A1 718, Box #3, National Archives College Park, MD.
57.
“Business Roundtable Report,” February 28, 1974; “Business Roundtable Report,” April 1974.
58.
“Business Roundtable Report,” April 26, 1974.
59.
“Business Roundtable Report,” April 26, 1974.
60.
“Business Roundtable Report,” July 20, 1974.
61.
“Business Roundtable Report,” October 1974.
62.
“Business Roundtable Report,” July 20, 1974.
63.
“Business Roundtable Report,” August 31, 1974.
64.
“Business Roundtable Report,” August 31, 1974.
65.
“Business Roundtable Report,” August 31, 1974.
66.
Waterhouse, Lobbying America, 181.
67.
Waterhouse, Lobbying America, 182.
68.
“Business Roundtable Report,” December 1974.
69.
“Business Roundtable Report,” January 1975.
70.
“Business Roundtable Report,” July 1975.
71.
“Business Roundtable Report,” June 1975.
72.
“Business Roundtable Report,” June 1975.
73.
“Business Roundtable Report,” August 1976.
74.
Thomas Cate, An Encyclopedia of Keynesian Economics, Second Edition (Northampton, MA: Edward Elgar Publishing, 2013), 182–83.
75.
“Business Roundtable Report,” August 1976.
76.
“Business Roundtable Report,” February 1977.
77.
“Business Roundtable Report,” July 1977.
78.
Rothschild, The Secret to GE’s Success, 183.
79.
“Business Roundtable Report,” July 1977; Hobart Rowen, “Business Wary of Ending ‘Double Tax,’” The Washington Post, July 13, 1977.
80.
Richard Steele et al., “Picking Up the Pieces,” Newsweek, October 3, 1977.
81.
David Broder, “The Search for a New Federal Reserve Chairman: A Secretive, Significant Process,” The Washington Post, December 30, 1977; Michael Ruby et al., “The Economy: New Look?,” Newsweek, January 9, 1978.
82.
“Business Roundtable Report,” July 1977.
83.
“Business Roundtable Report,” August 1977.
84.
“Business Roundtable Report,” October 1977.
85.
“Business Roundtable Report,” March 1978.
86.
“Business Roundtable Report,” June 1978.
87.
“Business Roundtable Report,” July 1978; “Business Roundtable Report,” September 1978.
88.
Jack Watson and Bruce Kirschenbaum, “Memorandum for the President Re: Anti-Inflation Initiatives,” July 3, 1978, Record Group 429, Entry A1 1025, Box #13, National Archives College Park, MD.
89.
Watson and Kirschenbaum, “Memorandum for the President,” July 3, 1978.
90.
Watson and Kirschenbaum, “Memorandum for the President,” July 3, 1978.
91.
Jimmy Carter, “Anti-Inflation Program Speech,” October 24, 1978.
92.
“Business Roundtable Report,” October 1978.
93.
Jane Campana, “Advisory Committees: Procedures–Pros and Cons,” January 26, 1979, Record Group 429, Entry A1 1025, Box #1, National Archives College Park, MD.
94.
“Business Roundtable Report,” February 1979.
95.
Alfred Kahn, “Modifications in the Price Program,” March 28, 1979, Record Group 429, Entry A1 1025, Box #13, National Archives College Park, MD.
96.
Jimmy Carter, “Talking Points for the President – After the Press Leaves,” March 29, 1979, Record Group 429, Entry A1 1025, Box #13, National Archives College Park, MD. Emphasis in text.
97.
W. Michael Blumenthal, “Memorandum for the President Re: Monetary Policy and Consumer Credit Creation,” March 30, 1979, Record Group 429, Entry A1 1025, Box #14, National Archives College Park, MD.
98.
Jimmy Carter, “Memorandum for the Heads of Executive Departments and Agencies, Re: The Economic Policy Group and the Coordination of Economic Policymaking,” March 30, 1979, Record Group 429, Entry A1 1025, Box #14, National Archives College Park, MD.; Alfred Kahn, “Long-Range Anti-Inflationary Policy,” May 17, 1979, Record Group 429, Entry A1 1025, Box #13, National Archives College Park, MD.
99.
Barry Bosworth and Robert Russell, “Barry Bosworth and Robert Russell to Michael Blumenthal, Stuart Eizenstat, Alfred Kahn, James McIntyre, Charles Shultze, Re: ‘Short-Term Inflation Policy Options,’” June 1, 1979, Record Group 429, Entry A1 1025, Box #13, National Archives College Park, MD.
100.
“Business Roundtable Report,” June 1979; Council on Wage and Price Stability, “Memorandum from Deputies to Economic Policy Group Re: General Electric Proposal for Pay/Price Standards,” July 16, 1979, Record Group 429, Entry A1 1025, Box #14, National Archives College Park, MD; Reginald Jones, “Reginald Jones to Alfred E. Kahn,” July 12, 1979, Record Group 429, Entry A1 1025, Box #15, National Archives College Park, MD.
101.
Bradley Graham, “‘Blockbuster’ Inflation Plan Urged by GE Head,” The Washington Post, April 26, 1979; Jerry Flint, “Why Shoot the Piano Player?,” Forbes, July 9, 1979.
102.
“Business Roundtable Comments and Recommendations on the Voluntary Pay Standard,” July 24, 1979, Record Group 429, Entry A1 1025, Box #15, National Archives College Park, MD.
103.
Alfred Kahn, “Alfred Kahn to Donald Seibert,” July 31, 1979, Record Group 429, Entry A1 1025, Box #15, National Archives College Park, MD.
104.
John C. Read, “NAM Recommendations for the Development of the Second Year Voluntary Wage/Price Standards,” August 3, 1979, Record Group 429, Entry A1 1025, Box #15, National Archives College Park, MD.
105.
Panitch and Gindin, The Making of Global Capitalism, 167–68.
106.
Panitch and Gindin, The Making of Global Capitalism, 163.
107.
Merrill Brown, “Why Are All These National Businessmen Smiling?,” The Washington Post, October 15, 1979.
108.
“Business Roundtable Report,” March 1980.
109.
“Business Roundtable Report,” April 1980.
110.
“Business Roundtable Report,” March 1980.
111.
“Business Roundtable Report,” June 1980.
112.
“Business Roundtable Report,” October 1977.
113.
“Business Roundtable Report,” September 1978; “Business Roundtable Report,” October 1978; “Business Roundtable Report,” December 1978; “Business Roundtable Report,” August 1979; “Business Roundtable Report,” December 1979; “Business Roundtable Report,” August 1977.
114.
“Business Roundtable Report,” January 1978.
115.
Steele et al., “Picking Up the Pieces.”
116.
“Business Roundtable Report,” June 1980.
117.
Panitch and Gindin, The Making of Global Capitalism, 168.
118.
Panitch and Gindin, The Making of Global Capitalism, 163.

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Political Science, Ontario Tech University, Oshawa, ON, Canada
Stephen Maher

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Maher, S. (2022). The Business Roundtable and the End of Managerialism. In: Corporate Capitalism and the Integral State. Marx, Engels, and Marxisms. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-83772-3_7

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DOI: https://doi.org/10.1007/978-3-030-83772-3_7
Published: 29 March 2022
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-83771-6
Online ISBN: 978-3-030-83772-3
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