Economic Reality

Economic Reality

The doom and gloom crowd will dislike this column.

All about number which show the economy is upward bound . . . and has been.

OpinionJournal.comThe Dangerfield Economy

By nearly every objective measure, the U.S. economy is strong and getting stronger. Just look at the Misery Index, the measure created by the late economist Arthur Okun adding the rates of unemployment and inflation. This may not be the most sophisticated of metrics, but it does capture the two greatest threats to household wealth and security. And it's indicating that, comparisons to the 1990s' bubble years excepted, the U.S. economy is doing very well.

Today's unemployment rate of 5.7% is close to the level Bill Clinton boasted about as he sought re-election in 1996. Meanwhile, inflation has fallen by a full percentage point over the past eight years. As the nearby table shows, the economy compares favorably by re-election standards and President Bush's policies should be enjoying at least a modicum of respect.