Misery Index : Britain's Feeling a Little Better

Continuing with the Reagan inspired Misery Index, it seems the country got a little happier in the last few months but things have taken a downward turn again. Given the budget deficit is the biggest economic challenge the country faces today, Guido’s Misery Index adds the government’s deficit divided by the GDP to RPI and the number of people unemployed, all taken from the latest figures from the Office for National Statistics.

Retail Prices Index + Unemployment rate + ( Public Sector Net Cash Requirement / GDP ) = Misery Index

The latest available figures for December 2010 give you:

4.6% + 7.9% + (2.4 / 331.4 x 100)  = 13.30

The Misery Index was steadily increasing since the beginning of the year. People got happier as Danny Alexander and Osborne took their axes to the deficit, however the latest rise in unemployment has reversed this trend. And that’s before the regressive VAT rise…

N.B. Stats bods can check Guido’s adding up here.

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Quote of the Day

Dominic Raab wrote in his letter of resignation…

“This is, at its heart, a matter of public trust,” he told the PM, concluding: “I cannot reconcile the terms of the proposed deal with the promises we made to the country in our manifesto at the last election… I believe that the regulatory regime proposed for Northern Ireland presents a very real threat to the integrity of the United Kingdom. I cannot support an indefinite backstop arrangement, where the EU holds a veto over our ability to exit…”


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