Misery Index (9.49) equals Unemployment rate (7.9) plus
Inflation rate (1.59) (Editor’s note: this inflation figure does not include the
rising price of fuel, whether residential/manufacturing or transportation, and food. Also, the unemployment number does not reflect the 8.5 million folks who are no longer being counted as part of the workforce. If they were included, the unemployment number would be 14.2% - in other words, all of the following is crap).
The misery index was initiated by economist Arthur Okun, an
adviser to President Lyndon Johnson in the 1960's. It is simply the
unemployment rate added to the inflation rate. It is assumed that both a higher
rate of unemployment and a worsening of inflation both create economic and
social costs for a country. A combination of rising inflation and more people
out of work implies a deterioration in economic performance and a rise in the
misery index.
High: 21.98 June 1980
Current: 9.49 January 2013
Low: 2.97 July 1953
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