I didn’t know about the inspiration by Iran
While that is the primary inspiration that Atwood herself cites, I would say that the main trigger for her writing the novel was the rise of the evangelical right in America under Reagan.
It’s very hard to understand now just how dominated America was by the liberal, urban upper middle class from the forties to the late seventies. The Republican party was still just the party of rich people who didn’t want to pay tax, and the Democrats had increasingly dropped their traditional base in the South. Even when there was a nominally right-wing President, the balance of power rested with liberals. Eisenhower basically laughed at the members of his party who wanted to repeal Social Security and it was under Nixon that abortion was legalized; Nixon’s administration also created the EPA.
Basically, the reason Fox News keeps going on about the ‘liberal elite’ is because it strikes a chord for the Boomers, who grew up when America was a much more liberal country.
Then Reagan won the 1980 election and the liberal upper middle class lost. their. shit.
They couldn’t understand where these people had come from. Kind of like the shock when Trump won only even more so, because by 2016 everyone was used to the religious right but in the late 1970s it wasn’t seen as a serious force in politics. Previously evangelicals hadn’t voted as a block; Southerners had voted Democrat in line with their economic interests while conservatives elsewhere in the country had voted for the Republic ideals of self-reliance and American patriotism more than their religious stance. It was Reagan (or his campaign managers) who took advantage of the South’s swing away from the Democrats to pull the evangelicals and other religious groups into a powerful religion-based voting demographic.
A lot of liberals had blithely assumed that religion was a Medieval relic that wasn’t a real force in American society any more. So Reagan’s victory triggered a not inconsiderable amount of hysteria along the lines of: ‘we’re only one step away from a Christo-fascist theocracy’.
They weren’t, of course. Nor were they in 2000 when Bush won and we had to go through the whole song and dance again. But that didn’t stop Atwood jumping on the bandwagon.
It is fun watching the upvotes yoyo up and down. From the timing, it seems like my comment is generally agreed with in Europe and highly controversial in the US and Canada.