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Misery Index Then versus Now June 20, 2011

Heres a cheery way to begin the week. For a brief moment on Friday, the misery index of the Jimmy Carter era reared its ugly head again. Briefly on Friday the Jimmy Carter era misery index came to mind. You may remember the misery index was computed by adding the inflation rate to the unemployment rate. On Friday, CNBC posted a brief story about how the misery index stands at its highest since 1983: 9.1% unemployment + 3.6% consumer price index = 12.7% misery index The story did not explain, however, how government games both elements of the misery index compared to 28 years ago. If you give up looking for work you no longer count as unemployed. Government statisticians make the rising price of steak go away by assuming you buy less steak and more hamburger, etc. John Williams at ShadowStats.com still runs the numbers the way they were in the good old days. The calculation done as it was in 1980 is . . . 22.3% unemployment + 11.2% consumer price index = 33.5% misery index compared to a peak misery index of 22.0% in June 1980.

Most who experienced those days would say they know it is worse now They know the numbers are different than those reported at that time. Does, Were from the government and we are here to help you take on new significance now?

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