1979 Economy & Business Events — Verified Historical Highlights
1979 Economy & Business Events — Verified Historical Highlights | TakeMeBack.to
- 01 Jan European Currency System established in 1979: The European Currency System (ECS) was established on January 1, 1979, to create a framework for monetary cooperation among European Community member states. It aimed to stabilize exchange rates and prepare for the eventual introduction of a single currency. The ECS was a precursor to the Economic and Monetary Union and the euro. source: ecb.europa.eu
- 05 Mar Iran resumes oil exports after two-month hiatus: On March 5, 1979, Iran resumed oil exports for the first time since a workers' strike and revolutionary upheaval halted production in December 1978. The initial shipment involved filling the Japanese tanker World Ambassador at Kharg Island's main export terminal. Despite the resumption, uncertainties remained about the future stability of Iran's oil industry and the consistency of oil revenues. source: washingtonpost.com
- 12 Mar Mello Yello soft drink launch: Mello Yello, a highly caffeinated citrus-flavored soft drink produced by The Coca-Cola Company, was introduced on March 12, 1979, to compete with PepsiCo's Mountain Dew. source: en.wikipedia.org
- 13 Mar European Monetary System established on March 13, 1979: The European Monetary System (EMS) was established on March 13, 1979, to promote monetary stability in Europe. It introduced the European Currency Unit (ECU) and aimed to reduce exchange rate variability and achieve monetary cooperation among member states. The EMS laid the groundwork for the eventual introduction of the euro. source: ecb.europa.eu
- 15 Mar Establishment of the European Monetary System: The European Monetary System (EMS) was established on March 15, 1979, to promote monetary stability in Europe. It introduced the European Currency Unit (ECU) and aimed to reduce exchange rate variability and achieve monetary cooperation among member states. The EMS was a precursor to the Euro and laid the groundwork for future economic integration in Europe. source: ecb.europa.eu
- 30 Apr First Israeli ship traverses Suez Canal: On April 30, 1979, the Israeli freighter Ashdod became the first Israeli-flagged vessel to navigate the Suez Canal, marking the end of Egypt's ban on Israeli shipping that had been in place since Israel's founding. The ship's passage was part of a 32-ship international convoy traveling from the Red Sea to the Mediterranean. The Suez Canal Authority provided an escort of patrol boats through the canal as a security measure and honor guard. The Ashdod paid a $10,000 fee for passage through the canal. source: washingtonpost.com
- 07 May 5th UNCTAD Conference Opens in Manila: The Fifth United Nations Conference on Trade and Development (UNCTAD V) commenced on May 7, 1979, in Manila, Philippines. The conference, held at the Philippine International Convention Center, continued until June 3, 1979, focusing on global trade and development issues. source: unctad.org
- 08 May Amway's business model legally validated by FTC ruling: On May 8, 1979, the Federal Trade Commission (FTC) ruled that Amway's business model was not an illegal pyramid scheme. The FTC found that Amway's policies, such as requiring distributors to sell products to at least 10 retail customers per month and prohibiting the purchase of large volumes of non-returnable inventory, helped prevent inventory loading and encouraged retail sales. However, the FTC also found Amway guilty of price-fixing and making exaggerated income claims, leading to orders to cease these practices. source: en.wikipedia.org
- 09 May California implements gasoline purchase limits: On May 9, 1979, California became the first U.S. state since World War II to implement gasoline purchase limits, introducing an "odd-even rationing" system due to fuel shortages causing long lines at service stations. The system restricted fuel purchases based on license plate numbers, with odd-numbered plates allowed on odd days and even-numbered plates on even days. This measure aimed to alleviate the fuel crisis affecting the state. source: washingtonpost.com
- 10 May Gasoline prices exceed $1 per gallon in Boston: On May 10, 1979, a Gulf station in Boston's Beacon Hill area became the first in the U.S. to raise its premium unleaded gasoline price above $1 per gallon, increasing it from 98.9 cents to $1.009. source: washingtonpost.com
- 19 May Gasoline price reaches one pound sterling per gallon in UK: On May 19, 1979, the price of a gallon of gasoline in the United Kingdom reached one pound sterling for the first time in British history. The Price Commission reported that some Esso petrol stations had prices of £1.02 per gallon, while most other stations had prices ranging from 89p to 92p per gallon. source: en.wikipedia.org
- 28 Jun OPEC raises oil prices by 16% to $23.50 per barrel: On June 28, 1979, the Organization of Petroleum Exporting Countries (OPEC) increased the price of a barrel of oil by 16%, setting the new price at $23.50. This decision was made during a meeting in Geneva, where representatives from the 13 OPEC nations agreed on the price hike, effective July 1, 1979. The increase was implemented to compensate for inflation and currency depreciation, aiming to stabilize the global oil market amid rising demand and production challenges. source: washingtonpost.com
- 02 Jul US Mint releases Susan B. Anthony dollar coin to circulation: On July 2, 1979, the United States Mint released the Susan B. Anthony dollar coin to the public. The coin, featuring a portrait of Susan B. Anthony, was intended to replace the larger Eisenhower dollar and was minted in large quantities to ensure widespread availability. However, its size and appearance led to confusion with the quarter dollar, resulting in poor public acceptance and limited circulation. source: usmint.gov
- 18 Jul Gold price reaches historic peak on July 18, 1979: On July 18, 1979, the price of gold reached $303.85 per ounce, marking a significant increase from earlier in the year. This surge was part of a broader trend where gold prices more than quadrupled since July 1978, rising from $20.67 per ounce to over $80 by January 1980. source: clevelandfed.org
- 24 Jul Paul Volcker appointed as Federal Reserve Chairman: On July 24, 1979, Paul Volcker was appointed as the Chairman of the Federal Reserve. His tenure is noted for significant monetary policy changes aimed at combating inflation during a challenging economic period in the United States. Volcker's policies had a lasting impact on the Federal Reserve's approach to monetary policy. source: federalreserve.gov
- 03 Aug Death of Bertil Ohlin: Bertil Gotthard Ohlin, a Swedish economist and politician, passed away on August 3, 1979, in Åre, Sweden. He was renowned for developing the Heckscher–Ohlin model of international trade and was awarded the Nobel Memorial Prize in Economic Sciences in 1977 for his contributions to the theory of international trade and capital movements. source: britannica.com
- 06 Aug Paul Volcker becomes Federal Reserve Chairman: Paul Volcker was appointed as the Chairman of the Federal Reserve on August 6, 1979. His tenure is noted for significant monetary policy changes aimed at combating high inflation in the United States during the late 1970s and early 1980s. Volcker's policies ultimately led to a period of economic stabilization, albeit with short-term pain in the form of recession. source: nytimes.com
- 05 Sep Royal Canadian Mint launches Gold Maple Leaf Bullion Coin: The Royal Canadian Mint introduced the Gold Maple Leaf Bullion Coin on September 5, 1979. This coin was the world's first 24-karat gold bullion coin, featuring a purity of 99.99% and a face value of C$50. It was initially available in a 1 troy ounce size, with subsequent smaller denominations introduced in 1982. source: lbma.org.uk
- 07 Sep Chrysler requests $1.5 billion loan guarantee from U.S. government: On September 7, 1979, Chrysler Corporation, led by Chairman Lee Iacocca, approached the U.S. government seeking a $1.5 billion loan guarantee to avert bankruptcy. The company faced significant financial losses and required federal assistance to continue operations. This request led to the Chrysler Corporation Loan Guarantee Act of 1979, which authorized the loan guarantees to stabilize the company. source: washingtonpost.com
- 29 Sep Gold reaches record price in Hong Kong: On September 29, 1979, gold prices reached a record high of over US$400 per ounce in Hong Kong, driven by inflationary concerns and geopolitical tensions. This surge marked a significant milestone in the precious metal's price history. source: todaysflashback.com
- 06 Oct Federal Reserve shifts monetary policy to control inflation: On October 6, 1979, Federal Reserve Chairman Paul Volcker announced a significant change in monetary policy, focusing on controlling the growth of bank reserves and the money supply to combat persistent inflation. This shift involved allowing interest rates to fluctuate more widely, moving away from targeting the federal funds rate. The new approach led to higher interest rates and was a pivotal moment in the Fed's efforts to stabilize the economy. source: federalreserve.gov
- 10 Oct Olkiluoto Nuclear Power Plant Unit 1 begins commercial operation: On October 10, 1979, Unit 1 of the Olkiluoto Nuclear Power Plant in Finland commenced commercial operations, marking a significant milestone in the country's nuclear energy production. This unit, a boiling water reactor (BWR) with a net capacity of 880 MW, was synchronized to the national grid on September 2, 1978, and achieved full capacity on January 8, 1979. The plant is owned and operated by Teollisuuden Voima Oyj (TVO). source: tvo.fi
- 16 Oct Nobel Prize in Economics awarded to Theodore W. Schultz and Sir Arthur Lewis: The Nobel Prize in Economics for 1979 was awarded jointly to Theodore W. Schultz and Sir Arthur Lewis for their pioneering work in the field of economic development. Their contributions significantly advanced the understanding of how economic policies can affect the growth and development of nations, particularly in the context of developing countries. source: britannica.com
- 31 Oct Second ACP-EEC Convention of Lomé signed: On October 31, 1979, the second Lomé Convention was signed in Lomé, Togo, between the European Economic Community (EEC) and 57 African, Caribbean, and Pacific (ACP) countries. This agreement expanded the partnership to include more ACP nations and introduced new provisions for financial and technical cooperation, building upon the first Lomé Convention signed in 1975. source: consilium.europa.eu
- 02 Nov Studio 54 owners plead guilty to tax evasion charges: On November 2, 1979, Studio 54 co-owners Steve Rubell and Ian Schrager pleaded guilty to federal income tax evasion charges. They admitted to underreporting the club's income and their personal earnings, leading to a total tax due of $366,267. In exchange for their guilty pleas, the government dropped additional charges, including obstruction of justice and cocaine possession. Sentencing was scheduled for January 18, 1980. source: washingtonpost.com
- 15 Nov Iran cancels oil contracts with U.S. companies: On November 15, 1979, Iran announced the cancellation of all oil contracts with U.S. companies, a move that had little immediate impact due to the U.S. halting oil imports from Iran on November 12, 1979, in response to the hostage crisis in Tehran. source: washingtonpost.com
- 17 Nov Brisbane suburban rail electrification begins: On November 17, 1979, the first section of Brisbane's suburban rail network was electrified, marking a significant milestone in Queensland's transportation history. The initial electrified segment ran between Darra and Ferny Grove, introducing electric multiple units (EMUs) to the region. This development aimed to improve efficiency and reduce reliance on diesel locomotives. The electrification project continued over the following years, expanding the network and enhancing urban mobility. source: railtram.com.au
- 28 Nov U.S. Steel Corporation announces major plant closures: On November 28, 1979, U.S. Steel Corporation announced the closure of 16 operations across eight states, resulting in approximately 13,000 layoffs. The company cited non-competitiveness due to high operating costs, unfairly priced imports, and excessive environmental spending requirements as reasons for the closures. Chairman David M. Roderick indicated that more layoffs could follow if certain facilities did not improve their financial performance. source: washingtonpost.com
- 12 Dec Gold price reaches record high on December 12, 1979: On December 12, 1979, gold prices reached a record high of $449.75 per ounce, marking a significant increase from earlier in the year. This surge was part of a broader trend, with prices rising from $300 in July 1979 to over $400 by October 1979, and continuing to climb into 1980. source: sdbullion.com
- 16 Dec OPEC members raise oil prices in December 1979: On December 16, 1979, Libya and Indonesia announced plans to increase their oil prices by $4 and $2 per barrel, respectively, ahead of the Organization of Petroleum Exporting Countries' (OPEC) annual price-setting meeting in Caracas. These preemptive hikes aimed to influence the upcoming OPEC decisions, which ultimately led to a significant rise in global oil prices, contributing to the energy crisis of the late 1970s. source: washingtonpost.com
- 21 Dec Congress approves $1.5 billion loan guarantees for Chrysler Corporation: On December 21, 1979, the U.S. Congress approved $1.5 billion in loan guarantees for Chrysler Corporation to prevent its bankruptcy. This decision was made after Chrysler faced significant financial losses and sought federal assistance to continue operations. The loan guarantees were contingent upon Chrysler meeting certain conditions, including raising additional funds from private sources and implementing cost-cutting measures. source: nytimes.com
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