Cause for Stagflation of the 1970s

[True Federalist (진정한 연방 주의자)]

Partly it was the odd dogma that inflation and unemployment were inversely linked. (There are some economic factors that do promote both inflation and employment, but they aren't always dominant in the economy.) But it was also a failure to consider the effects of externalities on the economy. It began with the extravagance of funding both the Vietnam War and the Great Society simultaneously and then just as we started cutting back on excessive military spending,we got the oil shocks which beyond the economic effect of increasing energy costs, caused a hunkering down on spending for other things at the worst time. One thing that FDR, Reagan, and Obama all got right was the importance of emphasizing hope over fear. That's essential for a well functioning economy.