Misery index (economics)
From Wikipedia, the free encyclopedia
The Misery Index is an economic indicator created by economist Arthur Okun, but often attributed to Chicago economist Robert Barro in the 1970s, due to the Barro Misery Index[1]. The Misery Index is found by adding the unemployment rate 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. <Ref>[[2]]</ref>
Contents |
[edit] U.S. Misery Index
[edit] Misery Index - Era by U.S president
| Rank | President | Time Period | Index Average | Low | High |
|---|---|---|---|---|---|
| 5 | Harry Truman | 1948 - 1952 | 7.87 | 1952-12 = 3.45 | 1948-01 = 13.63 |
| 1 | Dwight Eisenhower | 1953 - 1960 | 6.26 | 1953-07 = 2.97 | 1958-04 = 10.98 |
| 3 | John F. Kennedy | 1961 - 1962 | 7.27 | 1962-07 = 6.40 | 1961-07 = 8.38 |
| 2 | Lyndon Johnson | 1963 - 1968 | 6.78 | 1965-11 = 5.70 | 1968-07 = 8.19 |
| 7 | Richard Nixon | 1969 - 1973 | 9.98 | 1968-01 = 7.80 | 1973-12 = 13.61 |
| 10 | Gerald Ford | 1974 - 1976 | 15.93 | 1976-12 = 12.66 | 1975-01 = 19.90 |
| 11 | Jimmy Carter | 1977 - 1980 | 16.27 | 1978-04 = 12.60 | 1980-06 = 21.98 |
| 9 | Ronald Reagan | 1981 - 1988 | 12.19 | 1986-12 = 7.70 | 1981-09 = 19.33 |
| 8 | George H.W. Bush | 1989 - 1992 | 10.68 | 1989-09 = 9.64 | 1990-11 = 12.47 |
| 4 | William J. Clinton | 1993 - 2000 | 7.80 | 1998-04 = 5.74 | 1993-01 = 10.56 |
| 6 | George W. Bush | 2001 - 2005 | 7.98 | 2002-01 = 6.64 | 2005-09 = 9.97 |
[edit] Misery & Crime
Some economists posit that the components of the Misery Index drive the crime rate to a degree. They have found that the Misery Index and the Crime Rate correlate strongly and that the Misery Index seems to lead the Crime Rate by a year or so.
[edit] Data Sources
The data for the misery index is obtained from unemployment data obtained from the U.S. Department of Labor and Inflation Rate from Financial Trend Forecaster®. The exact methods used for measuring unemployment and inflation have changed over time.
