Invisible Hands

Starred review from September 29, 2008
Looking beyond the usual roster of right-wing Christians, anticommunist neo-cons and disgruntled working-class whites, this incisive study examines the unsung role of “a political movement of businessmen” in leading America's post-1960s rightward turn. Historian Phillips-Fein traces the hidden history of the Reagan revolution to a coterie of business executives, including General Electric official and Reagan mentor Lemuel Boulware, who saw labor unions, government regulation, high taxes and welfare spending as dire threats to their profits and power. From the 1930s onward, the author argues, they provided the money, organization and fervor for a decades-long war against New Deal liberalism—funding campaigns, think tanks, magazines and lobbying groups, and indoctrinating employees in the virtues of unfettered capitalism. Theirs was also a battle of ideas, she contends; the business vanguard nurtured conservative thinkers like economist Friedrich von Hayek and his secretive Mont Pellerin Society associates, who developed a populist free-market ideology that persuaded workers to side with their bosses against the liberal state. Combining piquant profiles of corporate firebrands with a trenchant historical analysis that puts economic conflict at the heart of political change, Phillips-Fein makes an important contribution to our understanding of American conservatism. Photos.