Shrug. Obama is already claiming credit economic improvment (jobs "saved or created" -- try to imagine the furor if Bush had tried that line!).

I'll still cheerlead for economic growth. To bowdlerize a great Zelazny line: I could not hate Obama so much did I not love America more.

I think the issue here is the reason for the recovery rather than whether or not there is a recovery. Myself and a few economists have been predicting a "V" shaped recovery in the 3rd quarter - mainly due to the reasons for the recession (the consumer and business panic last fall, I think the NBER will revise their start date for the recession to change it from the end of '07), and the reason for the recovery - the Fed's actions and the inventory drawdown after the panic subsided.

http://buanadha.wordpress.com/2009/07/20/why-it-is-important-to-understand-what-is-happening-to-the-economy/

The other thing is that we need to emphasize what the stimulus package has done - almost nothing, and emphasize the long term damage that obama's economic policies will have on the country - not only are they going to make the recovery weaker than it should be, but they will be hampering growth for years.

Markets are, and have always been, more powerful than governments.

That the market can recover in the face of all the government mischief that has occured in the past six months is testament to that power.

That doesn't mean that we will avoid the unintended consequences of government meddling in markets. There will be negative effects from exhorbitant spending and out-of-control fiscal policies. You know it. I know it. Just reminds me of a song from "Best Little Whorehouse In Texas". Something about dancing a little side-step?
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The problem with the economy recovering is that it will give the Democrats an excuse to really increase taxes which in turn will destroy future growth.

" Such disturbing and unwanted thoughts are not comforting "...only to those whom have concerns beyond their own. Only to those whom have morals and ethics that most of America can indentify with. Dealing with the realities of life and the consequences of actions, or inaction, is the messy truth of life and people. Unfortunately this conumdrum is exclusive of the left, the koskids et al. They don't have these kinds of concerns, they see no farther than themselves and how they can benefit by the discomfort of others, by the failure of those whom have the audacity to disagree. One need only become a socialist, lib, or marxist in this country and those concerns evaporate. Unless you are willing to abandon your morals and values there will be no respite from these feelings. Don't despair, accept that this is the truth of someone whom does truely care, someone whom isn't just an ideologue of the left or the right. As I tell my son, welcome to the real world.

well inflation is still waiting to happen. you can't print so much w/o it happening

If repair vs buying new is a sample of the state of the economy, then we are in big trouble.
Shoe repair, a service business in decline for years, continues to make a miraculous recovery.
25 years ago there were 17,000 small, independent shoe repair businesses in the U.S.
They even had their own trade organization and a magazine.
As throw away shoes from the Orient invaded us, they declined to about 6 or 7 thousand small stores, manned by people approaching retirement, or immigrants willing to work long hours for a meager living. The trade group & their magazine closed down.

Within the last 9 months this has all turned around. Grandpa's are being called out of retirement, new stores are opening, and waiting times for repairs in some areas are up to a MONTH!

People simply can't afford to continually buy new & throw away. Those expensive boots and imported Italian shoes are now repaired.
We've become not only frugal, but poor.

All the talk about a turn around is bogus.

Eric--

Should I be hoping the economy is improving?

Yes. People are still losing their jobs and their homes. Not only does that ruin their lives (even if only temporarily), it cuts retail sales. That leads to further layoffs and more small business closures. If we're not lucky, it can become a self-perpetuating spiral into another Great Depression.

At the same time, the social safety nets in place ensure that when times are tough, government spending increases (unemployment benefits, Medicaid, food stamps, etc.) With a projected deficit of $1.8 trillion, we just can't afford any more expenses.

So, yes, it's right to hope that the economy is improving, even if actual improvement gets some Democrats reelected in 2010.

Me, I don't think things are getting better yet. The official unemployment rate dropped 0.1% last month only because ~300,000 people got so discouraged that they stopped looking for work. The underemployment rate is rising steadily. Vacancy rates at strip malls are at their highest levels in the last several decades -- and climbing. That means small businesses are closing up shop. Since small businesses are the primary creators of new jobs....

So it's okay to hope. We need the economy to bounce back in a big way ASAP.

Just don't expect it to happen any time soon, okay?