Why the 1970s stagflation myth still misleads our politics

Video Description

We’re told that the 1970s proved Keynesian economics failed, that inflation and unemployment could rise together, and only neoliberalism could fix it. But the truth is very different. External shocks, not excessive spending, drove that crisis. Governments panicked, misunderstood money, and abandoned Keynes when they needed him most. In this video, I unpack what really caused stagflation — and why repeating those mistakes today risks another lost decade for Britain. Let us know your thoughts by voting in our poll: https://www.youtube.com/post/Ugkxw49wSO32JM7GNY-ynp9HTPQhqiRwDLsw 00:00 – Are we facing 1970s-style stagflation again? 01:00 – What really caused stagflation in the 1970s 02:00 – The oil shocks and imported inflation 03:30 – Union power, wage rises, and government panic 04:30 – The collapse of understanding: Keynes vs confusion 05:30 – The end of the gold standard and floating currencies 07:00 – How political choices, not Keynes, created the crisis 08:30 – Milton Friedman, monetarism, and the birth of neoliberalism 09:30 – What Keynes actually taught about inflation and power 10:30 – Why stagflation didn’t disprove Keynes 11:30 – Today’s inflation: supply shocks, not wages 12:00 – What we must do instead: planning, public investment, and care 13:30 – Reclaiming Keynes for a fairer, stable, prosperous economy TRANSCRIPT A transcript for this video is available at: https://www.taxresearch.org.uk IF YOU WANT TO WRITE TO YOUR MP ABOUT ISSUES IN THIS VIDEO If you want to write a letter to your MP on the issues raised in this blog post, there is a ChatGPT prompt to assist you in doing so, with full instructions, here. https://www.taxresearch.org.uk/Blog/2025/06/20/chatgpt-prompt-for-a-letter-to-your-mp/ HOW TO SUPPORT US Please consider donating: https://ko-fi.com/taxresearch ABOUT RICHARD MURPHY Richard Murphy is Emeritus Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best-known book is ‘The Joy of Tax’. This video was edited by Thomas Murphy. RICHARD MURPHY ON BLUESKY: https://bsky.app/profile/richardjmurphy.bsky.social OR ON MY BLOG: http://www.taxresearch.org.uk/Blog/ HIT SUBSCRIBE & GET NOTIFICATIONS Subscribe and get notified of new videos released. INTRODUCTION: https://www.youtube.com/watch?v=HdHsRPy3060 PLAYLISTS: The Wealth Series https://www.youtube.com/playlist?list=PLvRueM6wBgobQLeyZYAagFDMjEFTKbhRD Ecenomics https://www.youtube.com/playlist?list=PLvRueM6wBgob54Gs-fOL-8OAQ-IpduwB4 Britain https://www.youtube.com/playlist?list=PLvRueM6wBgobwTT4ATvJjsf8OO6S7wD10 Tax https://www.youtube.com/playlist?list=PLvRueM6wBgoaMni_12J6ULp3yUJisUZoY MMT https://www.youtube.com/playlist?list=PLvRueM6wBgoZ6jvRGSW5YXu8qogE6aClX Money https://www.youtube.com/playlist?list=PLvRueM6wBgoYnLk1c7syTvoIo8bKYUs5m Climate Change https://www.youtube.com/playlist?list=PLvRueM6wBgob4_wsYaVivWd2WumpPLYwJ USA https://www.youtube.com/playlist?list=PLvRueM6wBgoYYd3dSyU2Oyl3x7bWJOP7H Labour https://www.youtube.com/playlist?list=PLvRueM6wBgoa-KhzG-fnjDSg1WROL1zMw The Trump Administration https://www.youtube.com/playlist?list=PLvRueM6wBgobz41-GLimTho27A3flVWQx #Stagflation #KeynesianEconomics #Neoliberalism #UKEconomy #InflationCrisis #Monetarism #RachelReeves #1970sEconomy #Keynes #EconomicJustice #PublicInvestment #PoliticsOfCare #Austerity #LabourVsCapital #FiscalPolicy #EconomicHistory #ModernMonetaryTheory #SupplyShock #OilCrisis #EconomicPlanning #ProsperityForAll