Many world news stories occurred in 1978 including the signature of China and Japan for The Treaty of Peace and Friendship in August which led to the establishment of normal diplomatic relations with the U.S. in December. Russia proved to have a bad political and economic year. The trade deficit with the West jumped sharply and its growth rate lagged. Saudi Arabia played the role of the honest broker in Arab disputes over the Egyptian – Israeli peace negotiations in 1978 while neutralizing its ties with the United States at the same time.
The United Nations (U.N.) sent a peacekeeping force to Lebanon in 1978 after Israeli troops withdrew. Moscow continued to lose authority it once possessed over the world. Communist movement and the Euro communists of Italy, France, and Spain lst ground in elections. Many noted world leaders also died in 1978. The prime minister of Australia (Sir Robert.
Menzies) and Golda Meir, the prime minister of Israel were among such persons. Another death included J omo Kenyatta of Kenya. Meanwhile, events in our own nations continued to stir. The years 1978 remained year of discontent in the United States in which war was un noted but peace with oneself also remained absent. The U.S. Didn’t lose its influence in Asia and established Diplomatic Relations with the Communist Regime in China. Despite differences with the Soviet Union, The u S. remained on the verge of signing a Second Strategic Arms Limitation Treaty with Russia and peace with the Middle East remained a bright possibility.
The year 1978 saw the dramatic entrance of women into the work force of the nation and a wider re for movement for women’s rights. There was also an increase in special-interest groups. Only thirty-seven percent of eligible voters went to the polls in the congressional election in November of 1978. This remained the lowest turn-out in 35 years. President Carter introduced an austerity budget for 1978 -78 which infuriated liberals, major labor union leaders, and the blacks. Political controversies of 1978 and early 1979 illustrated this drift toward a transformation of people into new isolated yet powerful factions.
By the beginning of 1979, the United States was a more aware and less arrogant nation. After hum ulation by Vietnam and the shock of the Watergate Scandal, the U.S. Took its time to sort things out before the eighties approached. In December 1978, the major oil-producing countries raised their prices by 14.5%. This pushed the rate of inflation in the U.S. to eight percent and depressed the value of the dollar. In fact, through 1978, the value of the U.S. dollar created an almost insoluble dilemma not only for the U.S. but the entire Western world. Most of the blame was placed on President Carter and his inexperience.
However, President Carter initiated an anti-inflation policy (Phase II) in October..