What is the Misery Index?
The Misery Index for cities around the United States is figured by two components of basic, simple math. The inflation rate added to the unemployment rate equals the Misery Index. If you know those two numbers for your city, you can easily get the Misery Index sum.
Do you know where your city rates on this index?
If you’re like me, you probably don’t off hand because you may not know both numbers to get the sum needed to find out how miserable your city really is as for as economics go.
As of the end of August 2011, the nations Misery Index topped out at 12.87 compared to the 10.75 just a year ago. However, from March 2009 to September 2009 the Misery Index fell out of the red with July 2009 being the lowest of the year.
As for the Wichita, Kansas, area, Wichita State students found the city was more miserable than Lawrence and Topeka because of the higher unemployment rate and home prices in the area. However, Wichita is less miserable than Kansas City. It was not stated “Misery Index” shows Kansas beats East & West coasts whether the students used Kansas City as a whole or the part of the city that lives on the Kansas side of the border.
They did find as a whole, Kansas and cities in Kansas whether they are miserable or not, that the state sits far better than those on both coasts of the U.S, This is taking in the unemployment rates and inflation rates for both coasts compared to what those in mid country may be seeing.
Compared to some larger towns in Nebraska and Oklahoma, Kansas isn’t any less miserable than these cities and states. For example, Lincoln and Tulsa are far less miserable than Wichita according to what the students at WSU found.
Why does the Misery Index only include economics?
This is done to show how cities and states fair overall when economics are put into play only. Each state is run as a whole unit with cities falling into the category showing where the worst areas are hit during a crisis such as all states are seeing now.
Consider this, compare your monthly income versus monthly bills. You will find some months your own personal Misery Index may be higher than others. Meaning, the months when you may not be working or are working less hours, you have less money coming in than money going out. The same basic idea is used for the Misery Index. When people aren’t working or working as much, they are spending less money on housing and entertainment statewide.
How could the Misery Index help you financially?
Consider the two factors put in place to figure this index; unemployment and inflation.
The cities with lower to moderate unemployment may hold the key to areas where a job of some kind may be found. This could be a key factor for those who are wanting to get back to work and support their families.
When cities have a lower rate of unemployment, inflation on food, housing, gas, utilities and other things needed to live will match the rate people are willing to pay. One would think when people are not working the price of things would go down. This isn’t necessarily the case.
Inflation on prices is what the market will allow or bear from store to store and city to city. Everything from utilities to the prices retailers are charged to fuel for delivery is figured into the cost of goods. Simple basic economics that is or was taught in high school. The basic idea of what can and will be charged hasn’t changed much over the years.