" [The] American business community was also very impressed with the propaganda effort. They had a problem at that time. The country was becoming formally more democratic. A lot more people were able to vote and that sort of thing. The country was becoming wealthier and more people could participate and a lot of new immigrants were coming in, and so on.
So what do you do? It's going to be harder to run things as a private club. Therefore, obviously, you have to control what people think. There had been public relation specialists but there was never a public relations industry. There was a guy hired to make Rockefeller's image look prettier and that sort of thing. But this huge public relations industry, which is a U.S. invention and a monstrous industry, came out of the first World War. The leading figures were people in the Creel Commission. In fact, the main one, Edward Bernays, comes right out of the Creel Commission. He has a book that came out right afterwards called Propaganda. The term "propaganda," incidentally, did not have negative connotations in those days. It was during the second World War that the term became taboo because it was connected with Germany, and all those bad things. But in this period, the term propaganda just meant information or something like that. So he wrote a book called Propaganda around 1925, and it starts off by saying he is applying the lessons of the first World War. The propaganda system of the first World War and this commission that he was part of showed, he says, it is possible to "regiment the public mind every bit as much as an army regiments their bodies." These new techniques of regimentation of minds, he said, had to be used by the intelligent minorities in order to make sure that the slobs stay on the right course. We can do it now because we have these new techniques. " -Chomsky

Beynays' book 'Propaganda': http://www.historyisaweapon.com/defcon1/bernprop.html