classes. Iran's elite class consisted of wealthy land owners, intelligencia, military leaders, politicians, and diplomats. The Elite continued to support the monarchy and the Shah. The peasants were victim of unfulfilled political expectations, surveillance by the secret police, and the severe social and economic problems that resulted from modernization. The middle class favored socialism over capitalism, because capitalism in their view supported the elite, and does not benefit the lower classes. The middle class was the most changeable element in the group, because they enjoyed some of the privileges of the elite, which they would like to protect. At the same time, they believed that they had been cheated by the elite out of their share of the industrialization wealth (Orwin 43). About this time, the middle class, which included students, technocrats, and modernist professionals, became discontent withthe economy. The key event should have further stabilized the royal dictatorship, but the increase in oil prices and oil income beginning in 1974 caused extreme inflation. This was due to the investment strategy followed by the Shah, which led to a spectacular 42% growth rate in 1974. (Cottam 14). And because of the Shah's support structure which enabled the new rich to benefit from inflation, the government effort to deal with inflation was aimless. Poor Iranians and Iranians with a fixed income suffered major losses in real income. Better standards of living were no longer visible. Thus, the majority of the Iranian people developed a revolutionary predisposition. As the middle class became discontent in Iran throughout the 1970's, the desertion of intellectuals could be found in great excess. Ayatollah Ruhollah Khomeini represented much of the discontent of the religious sector of Iran. For speaking out against the Shah's autocratic rule, Khomeini was exiled to Turkey in 1963. In 1965, Khomeini moved to Iraq where...
