West Chester University - Serpentine Yearbook (West Chester, PA)

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NATIONAL The Dollar. Down but not out. The Dollar Our year began with inflation spiraling out of control and the dollar plunging to new lows. The economy was definitely going sour and most people blamed the uncon- trolled spending of the federal government. Confidence in Amer- ica from foreign governments such as West Germany, Japan, and Bri- tian eroded to the point where they questioned the competence of American leadership to solve this nations economics woes. In this light, President Jimmy Carter announced his helt-tighting plan for the stabilizing of the dollar and Phase II of his anti-inflation program. Included in his plan were wage and price guidelines of 7 ' c , the hiking of the Federal Reserves interest rates a full I ' r, and the in- creased selling of gold by the U.S. Carter, at the feet of Washington on Wall Street. Treasury. Both proponents and critics alike feared that these steps could contribute to a recession, but the supporters contended that this would be a small price to pay if the economy were collared as a result.

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Egyptian President Anwar Sadat. President Jimmy Carter. Israeli Prime Minister Menachem Begin. The Mid East A new chapter in the Mid East drama unfolded this year when the Egyptian-Israeli peace pact was signed. After twenty-five years of terrorism and numerous wars be- tween these two countries, Anwar Sadat and Menachem Begin signed, with the middleman help of Presi- dent Jimmy Carter, a Treaty that it is hoped will bring a lasting peace. There are many questions still un- answered, such as the Palastine question and the problem of the ad- verse reaction of many Arab coun- tries to the pact, but the first step towards peace has been suc- cessfully taken. Sadat and Begin embrace after signing the peace treaty.

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86 93 Energy To add to America ' s economic woes, there came news of OPEC ' s sharp rise in oil prices. With the United States still depending on OPEC for about 20% of its oil, and the temporary cut-off of oil from Iran due to its political problems, Demonstrators against Nukes. consumers could expect to see prices at the pump approach as much as a dollar per gallon by sum- mer ' s end. President Carter, in an effort to force a cutback in the amount of gasoline used by consumers, lifted price controls on oil drilled in the U.S. . Prices in the United States are well below those of the rest of the world, and Carter ' s move is ex- pected to bring a new wave of development and exploration in our country, thereby lessening our dependence on foreign oil. Nuclear Energy suffered a ser- ious setback in March when the na- tions worst commercial nuclear ac- cident occurred. On Three Mile Island near Harrisburg, Pa., a com- bination of human ana mechanical errors caused a serious leak of radioactive iodine, endangering the nearby communities as well as the rest of Central and Southeastern Pennsylvania. Governor Richard Thornourg advised all pregnant women and small children to leave the area within five miles of the reactor. For over a week a state of uncertainty and fear dominated the area. As the danger eventually sub- sided, serious questions were being asked about what actually had hap- pened, and about the future of nuclear power in America.