Income of Iranian Households; Expenses and Consumption (1978-1961)

Income of Iranian Households; Expenses and Consumption (1978-1961)

During the 1960s and 1970s, Iranian society witnessed significant transformations in various economic sectors. These changes not only facilitated class mobility and, to some extent, class inversion but also led to an increasing rift between society and the Pahlavi regime. The overwhelming influx of oil revenues, particularly after 1973, resulted in widespread inflation (especially from 1975 onwards) and created the groundwork for a vast network of economic rents. Collectively, these factors caused the living costs of the urban and rural middle and lower classes to rapidly diverge from their incomes, with a substantial portion of earnings being spent on necessities such as housing. Consequently, economic factors had a profound impact on people's lifestyles and contributed to widespread public dissatisfaction. This article poses the question, "What impact did the decline in Iranian household income have on the occurrence of the Islamic Revolution?" and, by analyzing existing statistics, argues that the public economic grievances stemming from the economic policies of the Pahlavi regime during the 1960s and 1970s were among the significant reasons for the formation of the Islamic Revolution in 1979.

Shideh / N. Azimi