Reaganland: America's Right Turn 1976-1980

by Rick Perlstein

The Federal Elections Campaign Act Amendments of 1974 made it easier to form political action committees—legal entities that pooled stakeholders’ individual contributions. This reform was specifically requested by labor unions, who believed it could help them dominate political fundraising because they had the ability to coordinate donations from members. But the organizations that found it easiest to coordinate donations were corporations—whose employees had to please the boss or lose their jobs. Some corporations merely “invited” employees to deduct PAC contributions straight from their paycheck. Others leaned on them to send money themselves. (“This is your opportunity to voluntarily contribute to the benefit of United Technologies’ employees and shareholders in signing a check,” ran a typical letter from a senior vice president to his corporation’s entire management upon the opening of the conglomerate’s new PAC in 1977.) Stockholders were supplicated for PAC donations, too.