Wednesday, July 23, 2008

Misery Index

In the 1970s, economists introduced "The Misery Index". It was a way to measure how Stagflation was putting the squeeze on American families. Since we appear in the mood for 1970s retro chic, let's reintroduce the Misery Index:

2(Unemployment rate) + Inflation Rate = Current Misery levels

Right now we are at 5.5% unemployment and the CPI is 7.9%.

2(5.5) + 7.9 = 18.9% Misery

This is our benchmark, let's see where it goes from there.

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1 Comments:

At 5:52 PM, Blogger David Austin Sing said...

what was the index back in the original stagflation days?

 

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