This video will explain the definition of the misery index. The misery index, created by Arthur Okun, is used to measure the degree of economic distress felt by people, due to the level or risk of joblessness combined with the increasing cost of living. The misery index is calculated by adding the unemployment rate to the inflation rate. Though the misery index is an imprecise metric, the general result is that the higher the misery index, the greater the unhappiness felt by average citizens. Learn more about the misery index in this video.