Do Unemployment and Inflation Measure Our Misery?
The Misery Index was created by economist Arthur Okun, an adviser to President Lyndon Johnson. It is the sum of the unemployment and inflation rates. The higher the number, the more misery the economy is suffering. Running against Gerald Ford for the presidency in 1976, Jimmy Carter made an issue of the Misery Index: It was 13%. He argued that no one should be reelected as president when the Misery Index is that high. When Carter sought reelection in 1980, the Misery Index exceeded 20%; he lost to Ronald Reagan.
The Misery Index was created by economist Arthur Okun, an adviser to President Lyndon Johnson. It is the sum of the unemployment and inflation rates. The higher the number, the more misery the economy is suffering. Running against Gerald Ford for the presidency in 1976, Jimmy Carter made an issue of the Misery Index: It was 13%. He argued that no one should be reelected as president when the Misery Index is that high. When Carter sought reelection in 1980, the Misery Index exceeded 20%; he lost to Ronald Reagan.