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They weren't the first band to be called punk. They were probably just the first band to personify it.
The word "punk" first made an appearance in music journalism in a 1970 essay, "The Punk Muse: The True Story of Protopathic Spiff Including the Lowdown on the Trouble-Making Five-Percent of America's Youth" by Nick Tosches in Fusion. He described a music that was a "visionary expiation, a cry into the abyss of one's own mordant bullshit," its "poetry is puked, not plotted." That same year, Lester Bangs wrote a novella titled Drug Punk, influenced by William Burroughs' book, Junky, in which there is a line, "Fucking punks think it's a joke. They won't think it's so funny when they're doing five twenty-nine on the island." Dave Marsh used the phrase "punk rock" in his Looney Tunes column in the May 1971 issue of Creem, the same issue that introduced the term "heavy metal" as a genre name. Marsh wrote, "Culturally perverse from birth, I decided that this insult would be better construted as a compliment, especially given the alternative to such punkist behavior, which I figured was acting like a dignified asshole." Tosches, Bangs, Marsh, Richard Meltzer, Greg Shaw and Lenny Kaye used the term to define a canon of proto-punk bands, including the Velvets, Stooges, MC5, the Modern Lovers and the New York Dolls (DeRogatis, Let It Blurt, 118-119).
(I always keep that bit of info on hand when someone claims that punk didn't come along until the mid-1970s.)
In the August '72 issue of Creem there are dozens of references to punk rock. It's like the whole IDEA of punk was already there - it just took bands like the Ramones to come along and personify it. And good for them for doing it!
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"Go read a book and flunk a test." -Iggy