Nobel laureate in economics Paul Krugman wrote an op-ed piece in the New York Times:
- “The decline in the poverty index reflects both what hasn’t happened and what has happened.”
- “What didn’t happen, despite the pounding of dire warnings in the news media, was a recession. The U.S. economy added four million jobs over the past year, and the unemployment rate remained near a 50-year low.”
- “What happened was a rapid decline in inflation”
The “Poverty Index” rose as prices rose in 2021 and 2022, but fell over the past 12 months. In his piece, Krugman said it was a “remarkable turnaround”.
Look what else turned up!
The Misery Index is an economic indicator devised by economist Arthur Okun, an adviser to President Lyndon Johnson in the 1960s.
It basically adds the unemployment rate to the inflation rate.
It is often used to refer to economic discomfort for the average person, as both high unemployment and high inflation create economic costs for people.