Selects: What's the misery index?

07/23/22 • 44 min

7 Listeners

Economists love their data because somewhere in the numbers lies the answer to the ills of the country. They also love to frame data in a way people can relate to. Such is the case with the famous "misery index." Learn all about it in this classic episode.

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Stuff You Should Know - Selects: What's the misery index?

Transcript Summary

In this select episode titled "What's the Misery Index?", the podcast delves into the significance of the misery index, a calculation that combines inflation and unemployment rates to gauge the state of the economy. This index has the power to affect presidential elections and predict changes in presidency. It reached its highest point during Watergate and Jimmy Carter's term, but Ronald Reagan managed to diminish it during his tenure. The discussion also explores alternative variations of the index, such as the Barrow Misery Index and Steve Hankey's version, which include additional factors like housing costs and credit card delinquency. Neoliberalism and its impact on both Republicans and Democrats are touched upon, highlighting the complexities of assessing the economy. Despite its flaws, the misery index remains a widely recognized measurement, and the episode concludes by pondering the potential of Stuff You Should Know becoming a television show. Tune in to gain insight into this captivating topic and its relevance in evaluating presidential and economic affairs.

Transcript

Speaker 100:00:00.239

Hi, everybody, it's Chuck here. I guess it's time to introduce another Saturday Select. I'm pretty miserable, so maybe I should just do this one on the Misery Index. It's called What's the Misery Index? And it's from June. I hope you'd like it. It was a lot of fun recording it. Welcome to Stuff you should know, a production of I Heart Radio. Hey, and welcome to the podcast. I'm Josh Clark and there's Charles W Chuck Bryant. The W stands for Wayne

Selects: What's the misery index? Top Questions Answered

How is the misery index calculated?

The misery index is calculated by adding the yearly rate of inflation to the unemployment rate.

Can the misery index predict political changes?

Yes, the misery index can be used as a predictor of political changes, as presidents and political parties are often affected by the state of the economy.

How does the economy impact the presidency?

The economy plays a significant role in determining the success or downfall of a presidency, as demonstrated by examples like Eisenhower's re-election, Johnson being replaced by Nixon, and Carter's high index leading to his downfall.

What is the impact of a presidential term on the economy?

The economic impact of a presidential term is often felt years later, as economies tend not to change quickly.

How did Reagan influence the economy during his presidency?

Reagan's impact on the economy is discussed as an example of a president influencing economic conditions.

How is the misery index calculated using different measurements?

Different measurements, such as U6 unemployment numbers, inflation, food prices, credit card delinquency, housing costs, and food stamp usage, can be used to calculate the misery index.

What is misophonia?

Misophonia is a disorder mentioned briefly in a listener email, characterized by an intense emotional or psychological response to specific sounds.

What is Okin's Law?

Okin's Law, coined by Arthur Okin, states that for each percentage point decrease in unemployment between 3% and 7.5%, the gross national product (GDP) rose by three points.

What is neoliberalism?

Neoliberalism is mentioned as a belief that Republicans and Democrats are essentially the same and negatively impacts those below the top echelons of power.

What is the Real Misery Index?

The Real Misery Index, developed by HuffPo in 2009, utilizes broader unemployment measurements (U6) that include discouraged workers and those working part-time but desiring full-time employment.

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