Household Misery Index Shows We're levelling Off Near An All Time High

The household misery index is levelling off. Unfortunately, that levelling is somewhere just beneath the all time high experienced in December of 1982.

Formerly, the misery index was calculated by adding the rate of inflation to that of unemployment. The blog Paper Economy says that that no longer explains reality, considering CPI’s inability to factor in the real rising costs households are experiencing.

Instead, Paper Economy includes these factors:

  • The U-3 unemployment rate
  • YOY per cent change of the 10-Year moving average of total nonfarm payrolls
  • YOY per cent change of the 10-Year moving average of “real” personal income
  • YOY per cent change of the 10-year moving average of “real” S&P 500

The blue line, representing the household misery index, shows our levelling off, from Paper Economy:

Household Misery 79

Now check out a quick primer to why everyone thinks the economy is headed into the toilet again >

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