The classic Misery Index is the sum of unemployment and inflation, though later variations have added interest rates and the relative shortfall or surplus of GDP growth.
Since the Status Quo figured out how to game unemployment and inflation to the point that these metrics are meaningless except as a meta-measure of centralized perception management, the Misery Index has lost its meaning as well.
I propose a Misery Index 2.0 of four less easily manipulated (and therefore more meaningful) metrics:
2. Real (adjusted for inflation) median household income: an imperfect but still useful measure of purchasing power1. The participation rate: the percentage of the working-age population with a job
3. Labor share of the non-farm economy: how much of the national income is going to wage-earners
4. Money velocity: a basic measure of economic vitality
The foundation of Misery Index 2.0 is jobs, earned income and the purchasing power of earnings. Inflation is easily gamed by underweighting big-ticket expenses and offsetting increasing costs with hedonic adjustments, and unemployment is easily gamed by shifting people from the work-force to not in the workforce. This category of zombies?not counted in measures of unemployment?has skyrocketed: