Factors within government's control that can contribute to the state of the economy include tax rates and preferences, spending programs and investments, federal lending rates, trade and labor policies, and business and environmental regulations. And many other factors are indicative of the economy's health: consumer prices, median incomes, the gross domestic product, workplace productivity, budget deficits, trade balances, unemployment rates and, yes, home values.
It is irresponsible, if not lazy, to simply point one finger at the White House and note the level of partisanship of its current occupant, then a second finger at the Dow Jones stock closing value that day, and draw a straight line connecting the two. But that's the kind of unfair hysteria we're hearing from some quarters.
Mr. Obama and his Treasury secretary, Timothy F. Geithner, are taking some big gambles. Their latest one appeared to have paid off with Monday's 6.8 percent market surge. But it's way too early to start drawing conclusions about where the economy is headed based on where the market closed today, tomorrow, next week or even next year.
