The economic crisis during the 1970s, often referred to as "stagflation," was caused by a combination of factors, including the oil crises, high inflation, and stagnant economic growth. The Arab oil embargo of 1973 and the subsequent increase in oil prices had a dramatic effect on the U.S. economy, leading to surging costs of goods and services. Coupled with rising unemployment, this resulted in a unique economic scenario where inflation and stagnation coexisted, challenging traditional economic policies. Stagflation prompted reevaluation of fiscal and monetary strategies and ultimately contributed to significant shifts toward deregulation and a focus on free-market principles in the subsequent decades.