Every month, economists look at how the average American is faring during these times of economic uncertainty. Economists use the Misery Index to measure the state of the US economy by combining the unemployment rate (4.20 percent) and the current inflation rate (6.81 percent). 11.01 percent is the current percentage of Americans who are miserable.
In terms of the Misery Index, what can we learn? To begin, rising prices are a well-known consequence of an increase in the general rate of inflation. Unemployment continues to increase, and as a result, more and more people end up in poverty. It can thus be used to gauge the overall health of the economy, as both employment and inflation impact the average wage earner in the United States.
Consumers’ purchasing power is reduced as a result of inflationary pressure. Higher prices imply that fewer items may be purchased. Thus even if more Americans return to work following the interruptions caused by the pandemic, their income, savings, and investments buy fewer and fewer things as time goes on. The unfortunate reality is that, even if customers haven’t done anything wrong, inflation and the passage of time have increased the pricing of essential products and services such as housing, food, and transportation. In other words, as the Misery Index rises, living gets more and more expensive due to inflation.
The economic pinch worsens as the Joe Biden presidency drags on and the Misery Index rises. The index was 10.82 percent a month ago, up 0.19 percent, and seasonal hiring likely kept it from rising more. Is the health of the US economy genuinely affected by the president? Yes, in a nutshell.
When the Misery Index is compared across presidents, it is clear that most Americans have been better off under Republican leadership. Until the COVID-19 epidemic arrived, most Americans had a good economy and a low Misery Index of 5.0 to 6.0 percent. The Biden administration’s economic policies are increasing everyday Americans’ pain. The score was 7.70% when Biden entered office in January 2021 and is now a debilitating 11.01 percent. Do we need more clarity on who’s behind these debilitating times? I think not! When the time comes to vote in 2022 and 2024, all American citizens should remember this agony and these economic numbers under Biden.