[Verse 1]
Back in nineteen seventy-three
Oil prices jumped dramatically
OPEC turned the taps down low
Made the crude oil prices grow
What you pay at the pump today
Hits your wallet right away
But there's more than meets the eye
When energy costs reach the sky
[Chorus]
Oil goes up, prices rise
Everything costs more, surprise
Workers want their bigger pay
Expectations lead the way
Fed must choose what they will do
Fight inflation coming through
Oil to CPI to wages climbing high
Policy response, that's how we try
[Verse 2]
When oil gets more expensive fast
Higher costs get passed and passed
Transportation, heating bills
Manufacturing up the hills
Consumer Price Index shows
How the cost of living grows
Food and shelter, gas and more
Inflation knocking at your door
[Chorus]
Oil goes up, prices rise
Everything costs more, surprise
Workers want their bigger pay
Expectations lead the way
Fed must choose what they will do
Fight inflation coming through
Oil to CPI to wages climbing high
Policy response, that's how we try
[Bridge]
Workers see their dollars shrink
Demand more pay, that's the link
If they expect prices to stay high
They'll negotiate and multiply
This creates a feedback loop
Wages chase prices in a group
Central bankers watch and worry
Act too late or act in hurry
[Chorus]
Oil goes up, prices rise
Everything costs more, surprise
Workers want their bigger pay
Expectations lead the way
Fed must choose what they will do
Fight inflation coming through
Oil to CPI to wages climbing high
Policy response, that's how we try
[Outro]
Seventy-three showed us the way
How one shock can change the day
Oil to prices, wages too
Policy makers, what they do
The mechanism now you know
How inflation starts to grow