A Gallup poll taken in mid-June found that 45 percent of Americans thought the economy was improving. This compares to 40 percent in May and only 23 percent in March. In fact, the recent survey marks the first time since June 2002 when more consumers believe economic conditions are better (45 percent) then say they are getting worse (43 percent).

These poll numbers on the economy are not surprising. Since mid-March, the U.S. stock market has increased 25 percent. Though most pundits don't realize it, the stock market is the nation's best overall measure of consumer confidence and business conditions.

Today's stock market is no longer just a rich person's game. In the past two elections, two out of three voters owned shares. Nationwide, one of every two families are investors, totaling nearly 100 million people. Hence, the stock market is not only a referendum on the economy, it is also a key political barometer, as well. One investor who will take great satisfaction from these results is none other than President George W. Bush.

Clearly, the market is sniffing out better times ahead. Since Congress passed President Bush's powerful tax package that slashed marginal rates on investment, families, and businesses both large and small, the Dow average has jumped over 600 points. Since the mother-of-all-stock-market bottoms last Oct. 9, the Wilshire 5000 index of the most actively traded stocks in the country has jumped nearly 30 percent. This move has recovered $2.2 trillion of shareholder wealth. No wonder people are feeling better about things.

At mid-year it is always customary to review the economic picture and revise the economic forecast. In addition to oversized tax cuts on investment and work effort, monetary policy has become much easier and deflationary threats to falling prices and profits have virtually disappeared. Science and technology continue to produce new advances. Productivity continues to rise, businesses are cutting costs and deleveraging balance sheets, accounting statements are cleaner, credit quality is greater, and national security is stronger.

The absence of any new terrorist attacks at home is perhaps the greatest blessing of the moment. Factories, office buildings and financial exchanges are open for business. Working men and women are getting home to their families safely.