benefited from the reforms. From 1960-72 the percentage of owner occupied farmland in Iran rose from 26 to 78 percent. Per capita income rose from $176 in 1960 to $2,500 in 1978. From 1970-77 the gross national product was reported to increase to an annual rate of 7.8% ("Iran" 896). As a result of this thriving economy, the income gap rapidly widened. Exclusive homes, extravagant restaurants, and night clubs and streets loaded with expensive automobiles served as daily reminders of a growing income spread. This created a perfect environment for many conflicts to arise between the 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 (...
