Steve's barking at those crazy 70s and the change of economic reality

Do remember how economic was taught, inflation occurred with full employment, recessions were due to too much manufactured goods. We could always fight inflation by reducing employment and having a mild recession. We could always end recessions by government spending. The Fed could always help lowering interest rates and make it easier for the private sector to borrow to help with hiring and raise interest rates forcing the private sector to into layoffs to lower inflation. Now came that crazy decade of the 70s with that new lexicon stagflation. High unemployment and high inflation at the same time.This was the start of high oil prices, that caused inflation with prices so high that too many people couldn't afford goods and services.
This should have been the turn around the way we think of inflation and employment, but we have a hard time changing the way we think.
Too many economist think that the FED ended stagflation when in truth the end of stagflation was due to the Iraq, Iranian war, with defence build up thrown in.

The decade of the 70s should have shown us one thing we must controll our energy and natural resources.