Canada’s combination of high rates of inflation and unemployment have secured it the sixth most “miserable” advanced economy in the world.
Tuesday morning, the Fraser Institute released a study that ranked the International Monetary Fund’s top 35 economic countries.
With an inflation rate of 3.15% and unemployment rate of 7.72%, Canada’s 2021 Misery Index score is 10.88.
“Canadians are rightly concerned about the country’s high inflation and unemployment rates, and when compared to other developed countries, Canada is not doing well,” said Jason Clements, executive vice president of the Fraser Institute.
American economist Arthur Okun created the Misery Index to understand the level of economic strain felt on an everyday basis for regular citizens of a country.
Inflation and unemployment act as measures that drastically affect the costs of living that impacts economic well-being on an individual level.
Only five countries received worse scores than Canada, Spain in the last spot with a score of 17.61, followed by Greece (15.73), Italy (11.96) and Iceland (11.26)
Countries above Canada’s score include France (10.10), the United States (9.72), Australia (7.33), and the United Kingdom (7.17).
Japan (2.61) and Switzerland (3.57) received the top scores being the least miserable.
The Misery Index was prominent in policy discussions during the 1970s and 1980s, but fell out of the spotlight during the 1990s while inflation and unemployment was low.
“The fact we are again discussing the Misery Index and Canada’s high ranking on it is bad news for all Canadians, who will suffer as a result,” Clemens said.
“Governments across Canada, particularly the federal government, should prioritize those policies that will make Canadians less miserable by lowering inflation and unemployment.”
Ewa Sudyk is a reporter with the Western Standard