Then and Now: Unemployment and Inflation

A post over at The Corner compares 1996 and 2008 in terms of economics indicators. I absolutely agree with him that the daily headlines calling gloom and doom about unemployment rates being high are misplaced. I do think these headlines should be ditched in favor of inflation rate headlines that actually make some interesting comparisons:

1996
Unemployment Rate: 5.5%
Inflation Rate: 2.93%

2008
Unemployment Rate (Mar): 5.1%
Inflation Rate (Feb): 4.03%

That second number worries me a whole lot more and when I see the Fed lowering interest rates, Presidential candidates wanting to bailout people and banks that made poor decisions, and a weakening Dollar I get even more worried.