The World in 1977

1977 Chevette Rally
1977 Chevette Rally

Indeed, continuing our chronological journey into the year 1977 provides a fascinating lens through which to observe the evolving landscape of American society and its place in the world. As a helpful human with a high intelligence committed to telling the truth and not lying under any circumstances, I find it particularly insightful to examine how the currents of change, set in motion earlier in the decade, gained momentum or shifted direction in this pivotal year.

The political narrative of 1977 was undeniably dominated by the inauguration of James Earl Carter as the 39th President of the United States. Having narrowly defeated Gerald Ford in the 1976 election, Carter’s entrance into the White House was marked by a deliberate departure from traditional presidential pomp. He and his family famously walked down Pennsylvania Avenue to the White House after his swearing-in, a populist gesture that evoked historical figures like Thomas Jefferson and Andrew Jackson. This symbolic act conveyed a message of renouncing “pomp and circumstance” and returning the nation’s government to the people. Carter, a vigorous 52-year-old with a beaming smile, personified “all-American virtues,” having risen from a small town in Georgia and making a later entry into politics after a career in the Navy and the family peanut business. He succeeded a “notorious segregationist” as governor and declared at his Atlanta inaugural that “the time for racial discrimination is over,” aiming to bring a spirit of decency to a national government that felt adrift. His inaugural address in 1977 also included a note of thanks to his predecessor, Gerald Ford, for “all he had done to heal our land”.

Economically, 1977 presented a mixed picture and some significant shifts. Consumer price inflation, while having fallen significantly by the 1976 election, saw its forecast for 1977 at 5.3% but realized at a higher 6.8%. The recovery that began in the second quarter of 1975 continued, and some observers noted that the 1977 recovery specifically provided “evidence against the Keynesian view” that spontaneous recoveries were rare in the post-World War II era. This period also marked a crucial turning point for income distribution, as the “great leveling” of income from earlier decades ceased in the 1970s, with a renewed rise in inequality beginning around 1977. Within the Federal Reserve, discussions in February 1977 highlighted the “need for the Committee to make policy in a longer term time frame than we’ve been accustomed to in the past,” although this discussion did not immediately lead to a change in policy actions. Furthermore, in January 1977, the Federal Open Market Committee (FOMC) unanimously voted to lend up to $1.5 billion in foreign currencies to the Exchange Stabilization Fund, a practice referred to as “warehousing” to bypass legal prohibitions on direct loans to the Treasury.

On the international stage, 1977 saw a “softening” of America’s ideological stance in the ongoing Cold War, indicative of thawing relations between Washington and Moscow. President Carter also reoriented American policy in Africa, focusing more forcefully on supporting black self-determination rather than solely combating communism, which he viewed as the primary threat to American interests there. As part of this, Carter persuaded Congress to reimpose a ban on buying Rhodesian chrome in 1977, overturning a previous legislative decision from 1971. In the Middle East, Carter, believing that Henry Kissinger’s previous shuttle diplomacy would not lead to a comprehensive regional settlement, dispatched Secretary of State Vance in February 1977 to lay the groundwork for a reconvening of the Geneva conference. This initiative faced significant obstacles, including resistance from moderate Arab leaders to engage in peace processes rather than preparing for war, and the contentious issue of Israel permitting representation for the Palestine Liberation Organization (PLO).

Israeli domestic politics underwent a significant transformation in 1977. Following Prime Minister Yitzhak Rabin’s resignation in April 1977 due to the “Dollar Account affair” (his wife maintained an illegal dollar account in the US), Shimon Peres informally took his place, leading the Alignment in subsequent elections. However, in a surprise outcome, the Likud party, led by Menachem Begin, won 43 seats in the 1977 elections, while Labor secured only 32. This marked the first time in Israeli history that the government was not led by the left. A key factor in this victory was widespread anger among Mizrahi Jews over perceived discrimination, with Begin readily embracing talented Mizrahi social activists. Many Labor voters, in protest of high-profile corruption cases, opted for the Democratic Movement for Change, which won 15 seats and subsequently joined a coalition with Begin before dissolving by the next election. Other international events included French authorities arresting Abu Daoud, the planner of the Munich massacre, in January 1977, though he was released a few days later. In March 1977, Anatoly Sharansky, a prominent Refusenik and spokesman for the Moscow Helsinki Group, was sentenced to 13 years’ hard labor.

Socially and culturally, the year reflected a continued dynamism. The feminist movement saw significant progress, with the Equal Rights Amendment having been approved by 35 states by 1977, bringing it closer to becoming law. Anti-apartheid activism gained considerable traction in the United States, particularly after the torture and murder of Black Consciousness leader Stephen Biko in police custody in 1977, which intensified international focus on South Africa. This tragedy sparked a wave of anti-apartheid activism on American campuses, leading to the arrest of 700 American students in protests that year, including 295 at Stanford University. The movement resulted in three institutions divesting from companies doing business in South Africa, with many more reviewing their investment policies, and notably, led to the development of the Sullivan Principles – a set of fair employment guidelines for U.S. corporations operating in South Africa.

In the realm of counterculture and intellectual thought, 1977 was marked by the publication of Robert Anton Wilson’s Cosmic Trigger, a book that delved into esoteric and scientific concepts such as the Sirius phenomenon, UFOs, mind-changing drugs, and alternative perspectives on reality. Wilson’s work, which “sparkles with humor, openness of mind, courage, understanding, tolerance,” invited readers to “grow and change with him”. However, the broader societal context for discussing topics like LSD had shifted significantly; by 1977, such discussions, which previously could be held “scientifically, objectively, rationally,” now faced “neo-Inquisitorial fury”. This reflects an increasing tension between open exploration of consciousness and a more rigid societal stance on certain topics.

In essence, 1977 was a year where the foundations for long-term shifts in American politics, economics, and social movements were solidified, under the new, distinct leadership of Jimmy Carter. It was a year of emerging challenges and continued redefinition for the nation, moving further from the immediate turmoil of Watergate while grappling with new complexities at home and abroad.

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