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Thursday, November 19, 2009

Economic Distress on the Rise

Distress Index Highest Since June

The Foundation for Economic Education (FEE) updated its Distress Index (DI) today in light of recent data released by the federal government showing an increase in the Consumer Price Index, which is commonly used to measure inflation. As a result the DI was raised to 59.7, the highest point since June.

Over the past few months the Distress Index had fallen slightly from an alarming 61.7 in June, which marked the highest economic distress in over 30 years. Many had hoped this would lead to a full economic turnaround. But rising unemployment and the return of consumer price inflation dashed those hopes and confirmed the economy is still in deep distress.

“The minor excitement about turning the corner and coming into a recovery may have been premature. Even the President is now warning of a double-dip recession,” said Prof. Paul Cwik, co-creator of the index. Cwik, an associate professor of economics at Mt. Olive College in North Carolina, warned that the “current recession is far from over” and noted that the trillions of dollars that have been pumped into the economy are now “starting to have an effect on some prices, which will only hinder the necessary liquidation process.”

To learn more about the Distress Index, visit ( or contact Mike Van Winkle at (708) 289-3136 or [email protected].

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