Misery Index vs. Consumer Sentiment: A Paradox in American Economic Perception The Misery Index, a measure combining unemployment and inflation rates, suggests Americans should be feeling less miserable than they report. Created by economist Arthur Okun, this index gained prominence during the 1976 and 1980 presidential elections. In April 2020, the Covid crisis drove the Misery Index to its highest level in nearly four decades, but it has since fallen sharply due to cooling inflation and low unemployment, standing at 6.8 in November with unemployment at 3.7% and a 3.1% rise in consumer prices. Despite this improvement, consumer sentiment remains low. The University of Michigan’s index of consumer sentiment only recently increased to 69.7 in December from November’s 61.3, still below its pre-pandemic level of 101 in February 2020. This disconnect highlights a complex relationship between economic indicators and public perception. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts True Inflation May Have Peaked in Late 2022 READ MORE Sprott CEO Sees Potential for 66% Price Jump READ MORE ZeroHedge: Time to Bet Against Banks READ MORE Record Gold Rally Hits Pause as U.S. Treasury Yields Climb READ MORE Economists Question the Recession-Predicting Power of the Inverted Yield Curve READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment