As the feckless Biden Administration continues to gaslight, spin, and deflect blame for the soaring cost of living in the United States, most Americans are forced to tighten their belts and cut back on everyday purchases. That means it’s time once again to check on the U.S. Misery Index.
Each month, economists use the most recent Bureau of Labor Statistics data in an attempt to gauge the health of our economy. By adding the current U.S. unemployment rate of 3.8% to the current rate of U.S. inflation of 7.87%, economists quantify the economic well-being of the country into what is called the U.S. Misery Index. In turn, the Misery Index is used to gauge how average Americans are weathering the ups and downs of the U.S. economy under the Biden/Harris administration’s disastrous economic policies — including the Russian invasion of Ukraine.
The current U.S. Misery Index stands at a painful 11.67%. Once again, the current Misery Index is higher than the previous month’s index, which was 11.48%. The situation is definitely not improving for the average American family’s wallet.
So what exactly does the Misery Index tell us? First, we know that as the rate of inflation goes up, the cost of living increases. Next, as the unemployment numbers rise, more and more people fall into poverty. Consequently, the Misery Index acts as a kind of snapshot that can be used to gauge the health of the economy as a whole, since both unemployment and inflation impact the average American wage earner.
But even if we take food and energy out of the equation, core inflation is at a high not seen since the 1980s.
The US Inflation Rate rises to 7.9%, its highest level since 1982. Core Inflation (excludes food/energy) rises to 6.4%, also the highest we've seen since 1982.
Charting via @ycharts pic.twitter.com/YNtwUnLmNh
— Charlie Bilello (@charliebilello) March 10, 2022
Unfortunately, everyday Americans don’t live in a fantasy world where we don’t have to pay for food and energy. We all have to eat and drive our cars. What’s more, this time of year, most Americans still need to heat their homes, especially at night.
Heating Oil futures hit a new all-time high, surpassing their previous high from 2008.
Increase year-to-date: 85%. pic.twitter.com/pBDu7G438f
— Charlie Bilello (@charliebilello) March 8, 2022
Inflation decreases the purchasing power of consumers. Higher prices mean fewer goods can be purchased, so even as Americans return to work after the economic disruptions of the pandemic, their wages, savings, and investments buy less and less the more inflation rises. The sad fact is, even though consumers haven’t done anything wrong, inflation acts as a tax, and the mere passage of time increases the prices of everyday goods and services such as housing, food, and transportation. Under these conditions, when and if workers get a raise this year, inflation will eat up any gains. In other words, as the Misery Index rises, life simply becomes more and more expensive.
So in the grand scheme of things, does it really matter who is in the White House? Or are inflation and the cost of living simply political footballs tossed around by politicians looking to get elected or re-elected? The answer is yes, it absolutely does matter which party sets our economic policies.
As is clear in the above chart, when the Misery Index is compared over the terms of the U.S. presidents, it’s obvious that most Americans have been economically better off under most Republican presidents (in pink). In fact, most Americans enjoyed a fairly robust economy with a low Misery Index hovering around 5.0% to 6.0% under Donald J. Trump until the COVID-19 pandemic hit. It’s unmistakable that the Biden administration’s economic policies are increasing the everyday American’s misery. When Biden took office in January 2021, the index stood at 7.70%, and it has since climbed to a crippling 11.67% today.
Meanwhile, as my PJ Media colleague Matt Margolis reported today, the U.S. Bureau of Labor Statistics announced that the February Producer Price Index “increased a colossal 10% over a year prior” which is “the first time the index hit double digits since” its 2010 inception. This increase will cause businesses to increase prices to consumers, bringing more misery to average Americans.
All American voters would do well not to get distracted by the events in Ukraine or the next virus variant and remember the misery these economic numbers under Biden have brought them when it comes time to vote in 2022 and 2024.
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