As inflation continues to wreak havoc on the economy, labor statistics show that the American quality of life is on a sharp decline.
The U.S. Misery Index is a common indicator of the state of the economy. Economists compute the statistic by adding the unemployment rate to the inflation rate. The resulting percentage is known as the Misery Index.
Economist Arthur M. Okun first discussed the statistic, calling it “the discomfort index” and describing it as a useful snapshot of the state of the economy.
Currently, the unemployment rate in America is 3.5%, and the inflation rate is 8.2%, meaning the Misery Index sits at 11.7%. Compared with data from the last 74 years, the current Misery Index is approaching dangerous territory. Over the last decade, the only time the Misery Index has been worse was during the height of the COVID-19 pandemic.
Many believe that the Biden administration is responsible for the state of the economy. PJ Media’s Rick Moran recently pointed out that The Federal Reserve appears to be the only government agency proactively battling the issue of inflation.
“The Fed appears to be the only warrior in this battle, as the president and Congress have abnegated their responsibilities and refuse to do what’s necessary to help tame inflation,” Moran wrote. “Cutting spending would be a very good start.”
“Inflation is now being driven by expectations of price increases as much as actual pressures on costs,” he continued. “This begets an inflationary spiral that can easily get out of control and make matters much worse.”
Meanwhile, President Joe Biden seems to be more preoccupied with the world economy than the American economy.
On Saturday, reporters asked Biden about the economy while he ate ice cream at a Baskin-Robbins in Portland, Oregon.
“I’m not concerned about the strength of the dollar,” Biden responded. “I’m concerned about the rest of the world…The problem is the lack of economic growth and sound policy in other countries, not so much ours.”
“And that’s having, it’s worldwide inflation, and it’s consequential,” he added.
Biden, while munching on ice cream says, "Our economy is strong as hell."pic.twitter.com/NJHR1KHh4R
— Election Wizard 🇺🇸 (@ElectionWiz) October 16, 2022