nightmarishly right-wing, was actually more liberal than the Johnson administration in many ways—less hawkish in Vietnam, more free-spending on social programs. The reason wasn’t that Richard Nixon was a liberal but that the country as a whole had continued to move steadily to the left throughout the late sixties and early seventies; the political climate of institutions like the U.S. Congress and the boards of directors of big corporations was probably more liberal in 1972 than in any year before or since, and the Democratic party nominated its most liberal presidential candidate ever. Nixon had to go along with the tide.

In New Orleans, my hometown, the hippie movement peaked in 1972 or 1973. Long hair, crash pads, head shops, psychedelic posters, underground newspapers, and other Summer of Love-inspired institutions had been unknown there during the real Summer of Love, which was in 1967. It took even longer, until the middle or late 70s, for those aspects of hippie life that have endured to catch on with the general public. All over the country, the likelihood that an average citizen would wear longish hair, smoke marijuana, and openly live with a lover before marriage was probably greater in 1980 than it was in 1970. The 60s’ preoccupation with self-discovery became a mass phenomenon only in the 70s, through home-brew psychological therapies like est. In politics, the impact of the black enfranchisement that took place in the 1960s barely began to be felt until the mid- to late 1970s. The tremendously influential feminist and gay-liberation movements were, at the dawn of the 1970s, barely under way in Manhattan, their headquarters, and certainly hadn’t begun their spread across the whole country. The 60s took a long time for America to digest; the process went on throughout the seventies and even into the eighties.

The epochal event of the 70s as an era in its own right was the Organization of Petroleum Exporting Countries’ oil embargo, which lasted for six months in the fall of 1973 and the spring of 1974. Everything that happened in the 60s was predicated on the assumption of economic prosperity and growth; concerns like personal fulfillment and social justice tend to emerge in the middle class only at times when people take it for granted that they’ll be able to make a living. For 30 years—ever since the effects of World War II on the economy had begun to kick in—the average American’s standard of living had been rising, to a remarkable extent. As the economy grew, indices like home ownership, automobile ownership, and access to higher education got up to levels unknown anywhere else in the world, and the United States could plausibly claim to have provided a better life materially for its working class than any society ever had. That ended with the OPEC embargo.

While it was going on, the embargo

didn’t fully register in the national consciousness. The country was absorbed by a different story, the Watergate scandal, which was really another sixties spillover, the final series of battles in the long war between the antiwar liberals and the rough-playing anti-Communists. Richard Nixon, having engaged in dirty tricks against leftish politicians for his whole career, didn’t stop doing so as President; he only found new targets, like Daniel Ellsberg and Lawrence O’Brien. This time, however, he lost the Establishment, which was now far more kindly disposed to Nixon’s enemies than it had been back in the 1950s. Therefore, the big-time press, the courts, and the Congress undertook the enthralling process of cranking up the deliberate, inexorable machinery of justice, and everybody was glued to the television for a year and a half. The embargo, on the other hand, was a non-video-friendly economic story and hence difficult to get hooked on. It pertained to two subcultures that were completely mysterious to most Americans—the oil industry and the Arab world—and it seemed at first to be merely an episode in the ongoing hostilities between Israel and its neighbors. But, in retrospect, it changed everything, much more than Watergate did.

By causing the price of oil to double, the embargo enriched—and therefore increased the wealth, power, and confidence of—oil-producing areas like Texas, while helping speed the decline of the automobile-producing upper Midwest; the rise of OPEC and the rise of the Sunbelt as a center of population and political influence went together. The embargo ushered in a long period of inflation, the reaction to which dominated the economics and politics of the rest of the decade. It demonstrated that America could now be “pushed around” by countries most of us had always thought of as minor powers.

Most important of all, the embargo now appears to have been the pivotal moment at which the mass upward economic mobility of American society ended, perhaps forever. Average weekly earnings, adjusted for inflation, peaked in 1973. Productivity—that is, economic output per man-hour—abruptly stopped growing. The nearly universal assumption in the post-World War II United States was that children would do better than their parents. Upward mobility wasn’t just a characteristic of the national culture; it was the defining characteristic. As it slowly began to sink in that everybody wasn’t going to be moving forward together anymore, the country became more fragmented, more internally rivalrous, and less sure of its mythology.

Nixon resigned in August 1974, and the country settled into what appeared to be a quiet, folksy drama of national recuperation. In the White House, good-old Gerald Ford was succeeded by rural, sincere Jimmy Carter, who was the only president elevated to the office by the voters during the 1970s and so was the decade’s emblematic political figure. In hindsight, though, it’s impossible to miss a gathering conservative stridency in the politics of the late seventies. In 1976, Ronald Reagan, the retired governor of California, challenged Ford for

the Republican presidential nomination. Reagan lost the opening primaries and seemed to be about to drop out of the race when, apparently to the surprise even of his own staff, he won the North Carolina primary in late March.

It is quite clear what caused the Reagan campaign to catch on: He had begun to attack Ford from the right on foreign policy matters. The night before the primary he brought a half-hour of statewide television time to press his case. Reagan’s main substantive criticism was of the policy of détente with the Soviet Union, but his two most crowd-pleasing points were his promise, if elected, to fire Henry Kissinger as Secretary of State and his lusty denunciation of the elaborately negotiated treaty to turn nominal control of the Panama Canal over to the Panamanians. Less than a year earlier Communist forces had finally captured the South Vietnamese capital city of Saigon, as the staff of the American Embassy escaped in a wild scramble into helicopters. The oil embargo had ended, but the price of gasoline had not retreated. The United States appeared to have descended from the pinnacle of power and respect it had occupied at the close of World War II to a small, hounded position, and Reagan had hit on a symbolic way of expressing rage over that change. Most journalistic and academic opinion at the time was fairly cheerful about the course of American foreign policy—we were finally out of Vietnam, and we were getting over our silly Cold War phobia about dealing with China and the Soviet Union—but in the general public obviously the rage Reagan expressed was widely shared.

A couple of years later, a conservative political cause even more out of the blue than opposition to the Panama Canal Treaty appeared: the tax revolt. Howard Jarvis, a seventy-five-year-old retired businessman who had been attacking taxation in California pretty much continuously since 1962, got onto the state ballot in 1978 an initiative, Proposition 13, that would substantially cut property taxes. Despite bad press and the strong opposition of most politicians, it passed by a two to one margin.

Preposition 13 weis to some extent another aftershock lof the OPEC embargo. Inflation causes the value of hard assets to rise. The only substantial hard asset owned by most Americans is their home. As the prices of houses soared in the mid-seventies (causing people to dig deeper to buy housing, which sent the national savings rate plummeting and made real estate prices the great conversation starter in the social life of the middle class), so did property taxes, since they are based on the values of the houses. Hence, resentment over taxation became an issue in waiting.

The influence of Proposition 13 has been so great that it is now difficult to recall that taxes weren’t a major concern in

national politics before it. Conservative opposition to government focused on its activities, not on its revenue base, and this put conservatism at a disadvantage, because most government programs are popular. Even before Proposition 13, conservative economic writers like Jude Wanniski and Arthur Laffer were inventing supply-side economics, based on the idea that reducing taxes would bring prosperity. With Proposition 13 it was proved—as it has been proved over and over since—that tax cutting was one of the rare voguish policy ideas that turn out to be huge political winners. In switching from arguing against programs to arguing against taxes, conservatism had found another key element of its ascension to power.

The tax revolt wouldn’t have worked if the middle class hadn’t been receptive to the notion that it was oppressed. This was remarkable in itself, since it had been assumed for decades that the American middle class was, in a world-historical sense, almost uniquely lucky. The emergence of a self-pitying strain in the middle class was in a sense yet another 60s spillover. At the dawn of the sixties, the idea that anybody in the United States was oppressed might have seemed absurd. Then blacks, who really were oppressed, were able to make the country see the truth about their situation. But that opened Pandora’s box. The eloquent language of group rights that the civil rights movement had invented proved to be quite adaptable, and eventually it was used by college students, feminists, Native Americans, Chicanos, urban blue-collar “white ethnics,” and, finally, suburban homeowners.

Meanwhile, the social programs started by Lyndon Johnson gave rise to another new, or long-quiescent, idea, which was that the government was wasting vast sums of money on harebrained schemes. In some ways the Great Society accomplished its goal of binding the country together, by making the federal government a nationwide provider of such favors as medical care and access to higher education; but, in others, it contributed to the seventies trend of each group’s looking to government to provide it with benefits and being unconcerned with the general good. Especially after the economy turned sour, the middle class began to define its interests in terms of a rollback of government programs aimed at helping other groups.

As the country was becoming more fragmented, so was its essential social unit, the family. In 1965, only 14.9 percent of the population was single; by 1979, the figure had risen to 20 percent. The divorce rate went from 2.5 per thousand in 1965 to 5.3 per thousand in 1979. The percentage of births that were out of wedlock was 5.3 in 1960 and 16.3 in 1978. The likelihood that married women with young children would work doubled between the mid-sixties and the late 70s. These changes took place for a variety of reasons—feminism, improved birth control, the legalization of abortion, the spread across the country of the 60s youth culture’s rejection of traditional mores—but what they added up to was that

the nuclear family, consisting of a working husband and a non-working wife, both in their first marriage, and their children, ceased to be so dominant a type of American household during the 70s. Also, people became more likely to organize themselves into communities based on their family status, so that the unmarried often lived in singles apartment complexes and retirees in senior citizens’ developments. The overall effect was one of much greater personal freedom, which meant, as it always does, less social cohesion. Tom Wolfe’s moniker for the 70s, the Me Decade, caught on because it was provably true that the country had placed relatively more emphasis on individual happiness and relatively less on loyalty to family and nation.

Like a symphony, the  finally built up in a crescendo that pulled together all its main themes. This occurred during the second half of 1979. First, OPEC engineered the “second oil shock,” in which, by holding down production, it got the price for its crude oil (and the price of gasoline at American service stations) to rise by more than 50 percent during the first six months of that year. With the onset of the summer vacation season, the automotive equivalent of the Depression’s bank runs began. Everybody considered the possibility of not being able to get gas, panicked, and went off to fill the tank; the result was hours-long lines at gas stations all over the country.

It was a small inconvenience compared with what people in the Communist world and Latin America live through all the time, but the psychological effect was enormous. The summer of 1979 was the only time I can remember when, at the level of ordinary life as opposed to public affairs, things seemed to be out of control. Inflation was well above 10 percent and rising, and suddenly what seemed like a quarter of every day was spent on getting gasoline or thinking about getting gasoline—a task that previously had been completely routine, as it is again now. Black markets sprang up; rumors flew about well-connected people who had secret sources. One day that summer, after an hour’s desperate and fruitless search, I ran out of gas on the Central Expressway in Dallas. I left my car sitting primly in the right lane and walked away in the hundred-degree heat; the people driving by looked at me without surprise, no doubt thinking, “Poor bastard, it could have happened to me just as easily.”

In July, President Carter scheduled a speech on the gas lines, then abruptly canceled it and repaired to Camp David to think deeply for ten days, which seemed like a pale substitute for somehow setting things aright. Aides, cabinet secretaries, intellectuals, religious leaders, tycoons, and other leading citizens were summoned to Carter’s aerie to discuss with him what was wrong with the country’s soul. On July 15, he made a television address to the nation, which has been enshrined in memory as the

“malaise speech,” although it didn’t use that word. (Carter did, however, talk about “a crisis of confidence … that strikes at the very heart and soul and spirit of our national will.”)

To reread the speech today is to be struck by its spectacular political ineptitude. Didn’t Carter realize that presidents are not supposed to express doubts publicly or to lecture the American people about their shortcomings? Why couldn’t he have just temporarily imposed gas-rationing, which would have ended the lines overnight, instead of outlining a vague and immediately forgotten six-point program to promote energy conservation?

His describing the country’s loss of confidence did not cause the country to gain confidence, needless to say. And it didn’t help matters that, upon his return to Washington, he demanded letters of resignation from all members of his cabinet and accepted five of them. Carter seemed to be anything but an FDR-like reassuring, ebullient presence; he communicated a sense of wild flailing about as he tried (unsuccessfully) to get the situation under control.

I remember being enormously impressed by Carter’s speech at the time because it was a painfully honest and much- thought-over attempt to grapple with the main problem of the decade. The American economy had ceased being an expanding pie, and, by unfortunate coincidence, this had happened just when an ethic of individual freedom as the highest good was spreading throughout the society, which meant people would respond to the changing economic conditions by looking out to themselves. Like most other members of the word-manipulating class whose leading figures had advised Carter at Camp David, I thought there was a malaise. What I didn’t realize, and Carter obviously didn’t either, was that there was a smarter way to play the situation politically. A president could maintain that there was nothing wrong with America at all—that it hadn’t become less powerful in the world, hadn’t reached some kind of hard economic limit, and wasn’t in crisis—and, instead of trying to reverse the powerful tide of individualism, ride along with it. At the same time, he could act more forcefully than Carter, especially against inflation, so that he didn’t seem weak and ineffectual. All this is exactly what Carter’s successor, Ronald Reagan, did.

Actually, Carter himself set in motion the process by which inflation was conquered a few months later, when he gave the chairmanship of the Federal Reserve Board to Paul Volcker, a man willing to put the economy into a severe recession to bring back price stability. But, in November, fate delivered the coup de grâce to Carter in the form of the taking hostage of the staff of the American Embassy in Teheran, as a protest against the United States’ harboring of Iran’s former shah.

As with the "malaise" speech, what is most difficult to convey today

about the hostage crisis is why Carter made what now looks like a huge, obvious error: playing up the crisis so much that it became a national obsession for more than a year. The fundamental problem with hostage taking is that the one sure remedy—refusing to negotiate and thus allowing the hostages to be killed—is politically unacceptable in the democratic media society we live in, at least when the hostages are middle-class sympathetic figures, as they were in Iran.

There isn’t any good solution to this problem, but Carter’s two successors in the White House demonstrated that it is possible at least to negotiate for the release of hostages in a low-profile way that will cause the press to lose interest and prevent the course of the hostage negotiations from completely defining the presidency. During the last year of the Carter administration, by contrast, the hostage story absolutely dominated the television news (recall that the ABC show Nightline began as a half-hour five-times-a-week update on the hostage situation), and several of the hostages and their families became temporary celebrities. In Carter’s defense, even among the many voices criticizing him for appearing weak and vacillating, there was none that I remember willing to say, “Just cut off negotiations and walk away.” It was a situation that everyone regarded as terrible, but in which there was a strong national consensus supporting the course that Carter had chosen.

So ended the seventies. There was still enough of the sixties spillover phenomenon going on so that Carter, who is now regarded (with some affection) as having been too much the good-hearted liberal to maintain a hold on the presidential electorate, could be challenged for renomination by Ted Kennedy on the grounds that he was too conservative. Inflation was raging on; the consumer price index rose by 14.4 percent between May 1979 and May 1980. We were being humiliated by fanatically bitter, pre-modern Muslims whom we had expected to regard us with gratitude because we had helped ease out their dictator even though he was reliably pro-United States. The Soviet empire appeared (probably for the last time ever) to be on the march, having invaded Afghanistan to Carter’s evident surprise and disillusionment. We had lost our most recent war. We couldn’t pull together as a people. The puissant, unified, prospering America of the late 1940s seemed to be just a fading memory.

I was a reporter for the Washington Post during the 1980 presidential campaign, and even on the Post’s national desk, that legendary nerve center of politics, the idea that the campaign might end with Reagan’s being elected president seemed fantastic, right up to the weekend before the election. At first, Kennedy looked like a real threat to Carter; remember that up to that point no Kennedy had ever lost a campaign. While the Carter people were disposing of Kennedy, they were rooting for Reagan to win the Republican nomination because he would

be such an easy mark.

He was too old, too unserious, and, most of all, too conservative. Look what had happened to Barry Goldwater (a sitting officeholder, at least) only 16 years earlier, and Reagan was so divisive that a moderate from his own party, John Anderson, was running for president as a third-party candidate. It was not at all clear how much the related issues of inflation and national helplessness were dominating the public’s mind. Kennedy, Carter, and Anderson were all, in their own way, selling national healing, that great post-sixties obsession; Reagan, and only Reagan, was selling pure strength.

In a sense, Reagan’s election represents the country’s rejection of the idea of a 60s-style solution to the great problems of the seventies—economic stagnation, social fragmentation, and the need for a new world order revolving around relations between the oil-producing Arab world and the West. The idea of a scaled-back America—husbanding its resources, living more modestly, renouncing its restless mobility, withdrawing from full engagement with the politics of every spot on the globe, focusing on issues of internal comity—evidently didn’t appeal. Reagan, and the country, had, in effect, found a satisfying pose to strike in response to the problems of the seventies, but that’s different from finding a solution.

Today, some of the issues that dominated the 70s have faded away. Reagan and Volcker did beat inflation. The “crisis of confidence” now seems a long-ago memory. But it is striking how early we still seem to be in the process of working out the implications of the oil embargo. We have just fought and won a war against the twin evils of Middle East despotism and interruptions in the oil supply, which began to trouble us in the seventies. We still have not really even begun to figure out how to deal with the cessation of across-the-board income gains, and as a result our domestic politics are still dominated by squabbling over the proper distribution of government’s benefits and burdens. During the 70s themselves, the new issues that were arising seemed nowhere near as important as those 60s legacies, minority rights and Vietnam and Watergate. But the runt of decades has wound up casting a much longer shadow than anyone imagined.