WHY THINK TANKS AROSE

In the 19^th century, before the federal government was very big, capitalists ruled the U.S. more directly than they do now. Government existed primarily for the purpose of “conquering” the West (providing rights-of-way for railroads, killing Indians, and offering financial inducements to extract resources), maintaining civic order (using troops to put down strikes and labor movements more generally), printing money, and providing relatively inexpensive but crucial subsidies for young and growing industrial empires. That was all the ruling class needed from government, and it got these things without even trying, since rich white men were the only people who ever served at the federal level. Government provided no social services and did almost nothing in the way of regulating industry or banking.

That began to change towards the end of the 19^th century. The first response by big business was to set up think tanks and foundations to sponsor legislation on specific issues—education, transportation, etc. Andrew Carnegie and a number of other industrial “progressives” and philanthropists gave a great deal of money to finance these “commissions” and “councils.” The swift rise of the automobile, advances in medicine, the extension of the franchise to women (1920), muckraking reporters, the institution of the income tax (1913), and World War I all contributed to a change in what were perceived to be the obligations of democratic government. Sinclair Lewis’ reports on food safety (or lack of it), the automobile and medical practice all screamed for some sort of national regulation. Extending the vote to women meant that concerns for family welfare became a political issue. And all of this got a major boost when the worldwide capitalist economy practically disintegrated in 1929-30. Also, and perhaps most significant of all, U.S.-based firms began operating abroad—not just trading abroad.

Gradually, it became apparent to the corporate community that its challenges needed a more proactive response from government, not just on a case-by-case basis but in strategic terms. The first major think tank (or advisory council) was the Council on Foreign Relations, founded in 1922. When the Great Depression hit, followed by another world war, the corporate community used its class cohesion and considerable resources to set up many more advisory councils to anticipate trouble. In the 1960s and 1970s, as ideological divisions began to crack upper-class cohesion, the powerful and well-heeled right wing of the corporate community established think tanks based exclusively on ideological criteria (American Enterprise Institute, Heritage Foundation, etc.) to advance its agenda, i.e., to move the entire ruling class to the right and thereby institutionalize right-wing federal policy.

That is why the policy-discussion groups Domhoff refers to began to proliferate in the post-World War II era. It is actually a sign of the progress of democracy that it became necessary for the ruling class to take additional steps to protect itself from the clamoring voices of workers, farmers, women, and minorities.

This is also evidence for Parenti’s argument that government grows in response to the expansion of wealth. Governments become large not in response to public demands but in response to the ruling class’ requirements for protecting its wealth and privilege.