U.S. Misery Index Relies Upon Biden’s Hopeful Economy Nonsense

Joe Biden declared that “inflation will fall in America” this week. Most Americans only needed to glance at their small wallets to see that he was full-on malarkey. Biden continued to proclaim that November Bidenflation had slowed slightly by 0.64%, which is something to be proud of. Jack, it’s still not double digits.

Biden denies that Bidenflation has reached its 40-year peak. Biden refuses to admit that most Americans don’t feel “optimistic” about the holidays or the year ahead because Bidenflation has not “risen by double digits” as inflation elsewhere in the world. In Biden’s America, we should be content with its 7.11%. We shouldn’t forget that there are 15 countries with lower inflation rates than the U.S., no matter what we do. Why would we want this?

Americans don’t feel much relief if any. Biden’s continuing disastrous economic policies and inaction on drilling issues are driving prices higher for all purchases, from housing to gas pumps to grocery stores and beyond. Inflation was lower than expected for November. Housing, food, and energy prices are still major contributors to rising consumer costs. These higher inflation-driven prices won’t be lowered by a drop of 0.64%, regardless of how well the president spins the country’s economic situation.

Economists used the latest Bureau of Labor and Statistics data (BLS) on U.S. unemployment (a stagnant 3.7%) to calculate the country’s economic health and inflation rate (November’s 7.1%). This sum is a snapshot of America’s economy in general. The original “discomfort index” was created in 1970 by Arthur M. Okun, a policy economist. Today, the sum of these two rates can be called the U.S. Misery Index.

Current U.S. Misery Index – Unemployment 3.7% + inflation 7.11% = 10.81%

The Misery Index measures the impact of inflation and unemployment on average American wage earners’ spending power. Even though inflation slowed slightly in November, the Fed raised interest rates this week at their highest level since 2006.

November’s slight decline in the rate of U.S. inflation doesn’t mean that all prices for all goods and services fell; it simply means some prices fell or aren’t rising as quickly as they were earlier in the year. The most recent BLS news release stated that inflation hasn’t hit just one or two price sectors of the economy. The Consumer Price Index (CPI), which measures the overall change in prices consumers paid for goods and services, rose 0.1% in November. During the same period, the prices for shelter (↑ 0.6%), food (↑0.5%), and apparel (↑0.2%) were the largest contributors to the monthly seasonally adjusted all-items increase. Recreation (↑0.5%) and personal care (↑0.7%) were among those that also increased over the last month. Used cars and trucks (↓2.9%), gasoline (↓2.0%), electricity (↓0.2%), medical care (↓0.7%), and airline fares (↓3.0%) saw a decrease.

Many Americans are planning to reduce holiday spending and travel, despite everyday consumer prices nearing record levels. They are not wrong. AAA reported that Thursday’s national gasoline average was $3.193 per gallon. This is $0.566 less than in November, but still $0.125 more than last year. The Western states continue to have high gasoline prices. California, for instance, has an average price per gallon of $4.446. No matter what perspective we take, gasoline prices remain higher than they were before the Trump administration. What about wage growth? How can American workers keep up with rising prices? It turns out, not so well.

Experts like Charlie Bilello, founder, and CEO at Compound Capital Advisors, said that twenty consecutive months with negative real wages growth have resulted in “a decline of prosperity for the American worker” which in turn has led to a high Misery Index and uncomfortably high real wage growth. No matter how optimistic Biden may try to portray the economic picture, American workers’ money isn’t going as far as it used. How much has Bidenflation cost American workers? E.J. Antoni estimates that the average American household has lost over $7,000 due to inflation and rising interest rate since Biden’s election. For most Americans, $7,000 is a significant amount of money.

Whether Biden admits it or not, today’s economic reality is rising prices and volatile stock exchange, stagnant wages, and climbing mortgage rates. The dollar is weakening and becoming less valuable. Inflation is caused by failed economic policies and the CEO of the Democratic Party. They don’t want to correct the ship, but they believe this is for our good.