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In the 1960s, an economic adviser to President Lyndon Johnson came up with the idea of an index to measure the general economic hardships felt by the masses. This index, appropriately labeled “the Misery Index”, is calculated by adding the unemployment rate to the inflation rate. As inflation and unemployment eased during the 1980s the term seemed to fade from economic discourse.

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However, with rising inflationary pressures and stubbornly high unemployment levels in both Canada and the US, this index may be more relevant than ever. With the 2012 presidential election around the corner it would not be surprising to hear the term “Misery Index” dusted off for use in the political arena.While Canada has earned accolades from politicians and individuals for its fiscal prudence and strong banking system, many Canadians are not receiving the benefits of the gleeful conditions that they are being told they are experiencing. One example of this discontent is the “Occupy” movement that started in Wall Street and made its way to Canada. Looking at the news headlines, it seems Canadians are none too happy with corporations and the lack of economic progress on Main Street. As the chart shows, the Canadian misery index has stealthily marched higher after hitting a low in the first quarter of 2008. The data indicate that the cost of living in Canadian cities is rising and high unemployment is mounting.