Is life in the UK as bad as the 1970s? Look at the misery index. The misery index is an economic indicator, created by economist Arthur Okun. The index helps determine how the average citizen is doing economically. The index is calculated by adding the unemployment rate to the inflation rate. It is assumed that both a higher rate of unemployment and a worsening of inflation create economic and social costs for a country.

On this measure while unemployment remains low, inflation has risen making matters arguably worse for the average citizen. But, the situation while rose than the 1990s and 2000s remains better than the 1970s.

If unemployment can remain low and inflation moderates then the picture will look much better. Some economists (cf. Hanke) might argue that unemployment should have a more important weight as a lack of a job is more costly than inflation. If you agree, then the situation seems better.