Stakeholder Capitalism: Postwar to 1960 (1 of 2)
This post discusses the role played by the business community from postwar to 1960, while the next post discusses business political involvement in the 1960s. Subsequent to these two posts, the following posts treat the role of labor similarly.
The business community from the era of the New Deal to the early ’70s often split in its political and governmental activities. On the one side, the US Chamber of Commerce (the Chamber) and the National Association of Manufacturers (NAM), represented what might be called the ultraconservative business community. On the other side were business moderates, often working under the umbrella of the Committee on Economic Development (CED), which was formed in the early ’40s.… Read the rest
The Last Gasp of Stakeholder Capitalism: The 1960s (2 of 2)
This long post chronicles the last, albeit significant gasp, of stakeholder capitalism.
Kennedy administration
The CED remained influential during the Kennedy administration, especially in trade and tax policies. Kennedy appointed many business leaders to key positions in his administration. These included Walter Heller, Paul Samuelson, a Nobel prize winner and perhaps the most respected Keynesian economist, and Kermit Gordon.
CED’s first success was enactment of the Trade Expansion Act of 1962. This gave the president significant authority to negotiate lower tariffs. Kennedy appointed Howard Peterson, a CED trustee, as his special trade advisor, to begin drafting new trade legislation. To get the new trade bill passed Kennedy had to agree to impose quotas on foreign textiles and increase subsidies for Southern cotton growers.… Read the rest
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