Misery Index
Misery IndexThe Misery Index is an economic indicator, created by economist Arthur Okun, and 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.[1] It is often incorrectly attributed to Chicago economist Robert Barro in the 1970s, due to the Barro Misery Index that additionally includes GDP and the bank rate.[2]
Misery Index - Era by U.S president
Index = Unemployment rate + Inflation rate
Rank
President
Time Period
Index Average
Low
High
5
Lyndon Johnson
1963 - 1968
6.78
1965-11 = 5.70
1968-07 = 8.19
7
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
COMMENT
For many years Americans talked about the misery index and until the George W. Bush administration it was very telling. We could add the unemployment rate to the inflation rate and the sum would indicate the misery index of the nation for that month or year. It appears at first glance that America is doing pretty well under George W. Bush as it has under William J. Clinton, and George H. W. Bush, but not as well under Jimmy Carter, Ronald Reagan, and Gerald Ford. But the misery index under Lyndon Johnson was the lowest and best of all time for America.
Americans take government indexes at face value. Most of us do not read the fine print. If you read the fine print the indexes make some sense. But if you compare the values to our individual values they do not.
Take the inflation rate. During George W. Bush's administration we have seen oil prices reach the roof and oil company profits reach record high's. Recently, chicken and beef prices jumped because much of our corn production is routed to produce ethanol instead of feeding our livestock and corn prices also jumped. The costs to educate our children from pre-school to the college and university levels have skyrocketed. Most state, county, and town government taxes are excessive already and going higher because they are running short due to prior obligations such as pensions and medical benefits of government employees. All health costs are running away from our individual ability to pay even with insurance. Even with such high costs our President George w. Bush and Congress are forcing the middle class to pay the huge tax of social costs of millions of illegal aliens in this country. If one reads and understands the fine print definition of the inflation rate, the government inflation rate is probably accurate. But if you are trying to survive and be honest and pay the bills of your family you see a much higher real inflation rate that we all have to pay everyday which is tremendously much bigger. When you ask people how they are paying for their heating bills this winter, for example you get a bleak picture. Millions of Americans are wearing layers of clothing in their homes including outdoor garmets, not taking prescription medicines because they would rather have something to eat, avoid going to their doctors because they cannot afford to go and do not have insurance, have lost their homes because they cannot afford to pay the insurance, taxes, or mortgage.
The American unemployment rate is also skewed away from reality.
1.) Today's minimum wage has half of the purchasing power of minimum wage during Lyndon Johnson's administration and even with the House increase in the minimum wage proposal will only have 75% of the purchasing power that minimum wage had during the Johnson years. And it has been more than 10 years since the minimum wage was last increased. Americans prefer to pay their bills and millions fall prey to the predator businesses that pay at or near official minimum wages usually with no benefits.
2.) We do not have a work force that is composed of American citizens and legal aliens, but is skewed with tens of millions of illegal aliens and H1B workers that are in America illegally since there are Americans available, qualified, and willing to perform those jobs. And millions of American continue to be fired because their jobs are sent offshore. Currently there are industries that are owned by the illegal aliens in America where most Americans will never find employment because they do not speak the foreign language.
3.) Millions of Americans, sometimes more than 10 years away from their retirement year, are retiring prematurely because they refuse to work for Walmart wages or are physically unable to stand for long amounts of time at a register or can no longer do physical labor such as stocking shelves. Many hoped to remain in their old jobs, but their jobs were offshored. Their retirements will not be as easy as they should be because they are losing as many as 10 years of retirement funding and they are also accepting penalties to retire early.
4.) Training and education are so expensive it is impossible to return to school to be retrained for most Americans especially those with families and those that are near retirement age.
5.) George W. Bush refused to extend unemployment benefits beyond the normal 6 months as his father has and I think those that do not find a job within those 6 months are not counted in official unemployment counts. I heard it takes a month for every $10,000 that you made previously to obtain a new job....most Americans fall off the unemployment radar before they are gainfully employed again.
6.) George W. Bush's tax policy has been to benefit the very wealthy and remove benefits on the poor and middle class. For example, he withdrew funding of grants and subsidies for college tuition to enable tax reductions for the rich.
Officially, more people are suffering with George W. Bush than with Lyndon Johnston even though Johnson provided a fair wage to those receiving minimum wage during his administration and America did not have the rampant offshoring of American jobs, tens of millions of illegal alien and the H1B problems of today. President George W. Bush has far exceeded all previous misery index values of any past president including Carter and Ford. He has made most of America's citizens and legal aliens very miserable. And what is really sad is that he is not ashamed at all as he should be.
Think about what the misery index will be for each of the Republican and Democratic presidential hopefuls that are running today if each are elected to President. How much of the misery index problem were they responsible for during the last 6 years? America has to be careful when electing future officials.
posted by God Bless America - Bob @ 11:14 AM
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