The Hollies had a string of hits by this point, but most came from outside writers. With "On A Carousel," band members Graham Nash, Allan Clarke, and Tony Hicks used what they had learned to construct a clever and effective pop song. Speaking with Bruce Pollock
, Nash explained how it came together. "I remember doing 'On A Carousel' in a bar room in Margate, this seaside town in England," he said. "Somebody would say, 'hey, carousel,' then it would go round and round and we'd end up with a song. Everything was pretty light, lyrically shallow. So, you would be able to think of something and write a pop song to it. You could really manufacture songs about anything. You develop a vocabulary of hooks and you swing two hooks together. It's a technique that can be learned. I don't think anybody just naturally writes that kind of song."
A year later, Nash left the group, eager to write songs that were more profound and sometimes political. He found kindred spirits in David Crosby and Stephen Stills, with whom he formed Crosby, Stills & Nash.