The more you look into the 70’s the more similarities that appear with today…… but this is from Jan2025, this have progressed since the then…..

“Rachel Reeves aims to stimulate growth, albeit through government spending rather than tax cuts. It is now clear that markets are rejecting this approach as well. The reality is that increased borrowing—regardless of the purpose—is no longer acceptable to the bond market.

We have been here before. In 1972, the then-Conservative government launched a “spend for growth” strategy, which resulted in inflation, a falling pound, and rising bond yields (quick boom then bust). This strategy contributed to the Conservatives losing the following general election, leaving the new Labour government to inherit the crisis. Ultimately, in 1976, James Callaghan was forced to call in the IMF, resulting in drastic austerity measures that stabilized the situation.”

Looking at the current state of things, enforced austerity could be the only long term out.