Why unemployment benefits matter

It's important to note that the economic pressures Americans are feeling are not over-hyped, in fact it's just the opposite. Barry Ritholtz explains,

Numerous pundits have taken to claiming that the Misery Index -- a combination of Inflation measures and Unemployment -- is still relatively low when compared with the 1970s.

They are full of shit. I have to call shenanigans on that foolishness. The way Inflation and Unemployment are measured today versus 30 years prior makes this an apples & oranges comparison. Merely showing 2008 versus 1973 is nonsense

Why? If we were measuring Inflation & Unemployment the way we did in the 1970s, we would see unemployment much closer to U6 Unemployment levels of 9.7% (versus the popularized headline inflation level, U3 now at 5.5%); the inflation measures would see an greater differential -- CPI might be closer to 10+.

That would put the Misery Index somewhere between 17 and 21 -- pretty close to the 1970s highs.

This is why Marilyn Musgrave's vote against extending unemployment benefits is so unbelievably tone-deaf. We're facing economic conditions that have not been seen in this country for over 30 years. While policy makers debate what steps to take to pull the economy out of this tail spin why not give the Americans who are hurting the most a modest reprieve?