ABSTRACT
In 1970, economist Arthur Okun introduced the “economic discomfort index,” the sum of the unemployment and inflation rates, as one means of capturing the success or failure of economic management. In the next several years, the index assumed a new name—the misery index—and became a staple of political campaigns. In 1976, for example, presidential candidate Jimmy Carter cited a misery index of 12.8 when building a case against Gerald Ford’s economic record. Carter promised full employment and price stability and, as noted in the previous chapter, both proved illusive. Indeed, the misery index peaked at 22 in 1980, as Carter was in the midst of his unsuccessful bid for reelection. Reagan secured a decisive victory, winning 44 states and 489 electoral votes. More impressively, the Republicans won control of the Senate for the first time since the Eisenhower administration and added thirty-five seats in the House, thereby giving them a working majority on key issues where they could rely on the support of conservative Southern Democrats.
