[Verse 1] Nineteen seventy-three, the world began to shake Oil embargo hit us like an economic earthquake OPEC turned the taps down, prices shot up high While factories were closing and the jobless lines grew wide [Chorus] Stagflation nation, when the rules don't apply High inflation rising while employment's running dry Stag-fla-tion, breaking all we used to know When prices climb but wages fall and business growth runs slow [Verse 2] Before this crazy decade, we thought we understood More jobs meant higher prices, that trade-off seemed so good But suddenly we're facing what the textbooks said can't be Recession and inflation living simultaneously [Chorus] Stagflation nation, when the rules don't apply High inflation rising while employment's running dry Stag-fla-tion, breaking all we used to know When prices climb but wages fall and business growth runs slow [Bridge] Cabinet brief time, let me break it down for you Oil shock supply disruption made the whole world black and blue Stagnation plus inflation equals stagflation's grip Monetary policy couldn't get us out of this economic dip [Verse 3] Canada and America, the global markets too All struggling with this puzzle, nothing seemed to work right through The Phillips Curve was broken, economists had to rethink How inflation and unemployment could both rise at the same link [Chorus] Stagflation nation, when the rules don't apply High inflation rising while employment's running dry Stag-fla-tion, breaking all we used to know When prices climb but wages fall and business growth runs slow [Outro] Seventy-three's the year we learned Economics can be overturned Stagflation taught us something new Sometimes the old rules just won't do
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