Nice graph, from InflationData.com:
Except for brief spikes early on, the Misery Index before 1970 was low.
Also, it reached a low around 1998, but the low was not sustained.
Tuesday, June 19, 2012
The Misery Index
Nice graph, from InflationData.com:
Except for brief spikes early on, the Misery Index before 1970 was low.
Also, it reached a low around 1998, but the low was not sustained.
Subscribe to:
Post Comments (Atom)
3 comments:
I don't think that i would weight inflation the same as unemployment, in determining "misery". Actually, maybe I don't really understand what the downside of inflation is, or something. But I would think that a "misery index" should be defined as something having to do with unemployment, standard of living, growth in real median wage, poverty rate, that sort of thing. I don't think it would really have anything to do with inflation. His graph looks like it's basically a graph of inflation with a suggestive (misleading) title.
Actually, back in the 70's, when inflation was high, it contributed very little to misery, because there were cost of living adjustments.
Now, when inflation is low, it's a big contributor, since wages are at best stagnant. Only 2% inflation causes a price rise of about 22% in a decade. With no compensating wage increase, that is extremely painful, and causes a significant decline in standard of living.
JzB
Can we not look at a graph, call it pretty, and put some of its pattern into words? Must we always make claims and reach conclusions?
Jazz: "Actually, back in the 70's, when inflation was high, it contributed very little to misery, because there were cost of living adjustments. Now, when inflation is low, it's a big contributor, since wages are at best stagnant."
So, low inflation is bad. But low inflation is good:
Jazz: "Debt does not always go up faster than income. It does so mainly when the official policies are voodoo economics. And a bit of inflation really does help..."
Post a Comment