by Mitch Kokai
Senior Political Analyst, John Locke Foundation
Gwendolyn Sims writes at PJMedia.com about more bad news for the flailing Biden administration.
With inflation at record-high levels not seen since 1981, it follows that the Misery Index would also climb higher over last month’s levels, causing increases in basic necessities like food, shelter, and gasoline. In other words, American consumers are definitely feeling the pain of Bidenflation in their wallets with every purchase.
So what exactly does the Misery Index tell us? First, we know that as the rate of inflation grows, the cost of living increases. If the unemployment numbers also rise, more and more people fall into poverty. In theory, adding those two rates together gives us the Misery Index, which acts as a kind of snapshot in time gauging the health of the economy as a whole. In practice and since both unemployment and inflation significantly impact the average American wage earner’s spending power, the Misery Index also gauges how negatively impacted the quality of American life is by Bidenflation. To put it another way, as the Misery Index climbs, the quality of American life declines.
And, while not perfect, the Misery Index is a useful tool to gauge the ups and downs of the U.S. economy under the Biden-Harris administration’s ruinous economic policies. With the soaring cost of living, most Americans are being forced to tighten their belts by cutting back on everyday expenses like groceries, gasoline, and housing. Simply put, inflation decreases the purchasing power of consumers for all purchases, not just luxuries.
Many experts like founder and CEO of Compound Capital Advisors Charlie Bilello believe, the true rate of inflation is even higher than the government is reporting when the Consumer Price Index (CPI) is considered. The “US wage growth has failed to keep pace with rising prices for 15 consecutive months,” tweeted Bilello on Wednesday. “This is a decline in prosperity for the American worker.”