The referendum result again demonstrates that American policy- and opinion-makers are more pessimistic than are Iraqis. Part of the problem is that Pentagon officials and journalists alike chart Iraq's success through misguided metrics. Counting car bombs does not demonstrate progress or lack thereof in Iraq. Objective indicators show that Iraqis have confidence that did not exist prior to liberation. According to an Aug. 16, 2002, commentary in the Guardian--a British newspaper that often opposes U.S. foreign policy--one in six Iraqis had fled their country under Saddam. Millions left because of war, dictatorship and sanctions. Today, several hundred thousand have returned; only the Christians still leave. If Iraq were as chaotic as the media implies, it would export refugees, not resettle them. Other indicators suggest Iraqis have confidence in their future. The Iraqi dinar, freely traded in international currency markets, is stable. When people fear for their future, they invest in gold; jewelry and coins can be sewn into clothes and smuggled out of the country. When people feel confident about the future, they buy real estate. Property prices have skyrocketed across Iraq. Decrepit houses in Sadr City, a Shiite slum on the outskirts of Baghdad, can easily cost $45,000. Houses in upper-middle-class districts of Mansour and Karrada can cost more than 20 times that. Restaurant owners spend $50,000 on top-of-the-line generators to keep open despite the frequent blackouts. In September 2005, there were 40 buildings nine stories or higher under construction in the Kurdish city of Sulaymani. Five years ago, there were none. Iraqis would not spend hundreds of thousands of dollars on real estate if they weren't confident that the law would protect their investment. Iraqis now see the fruit of foreign investment. A year ago in Baghdad, Iraqis drank water and soft drinks imported from neighboring countries. Now they drink water bottled in plants scattered across Iraq. When I visited a Baghdad computer shop last spring, my hosts handed me a can of Pepsi. An Arabic banner across the can announced, "The only soft drink manufactured in Iraq." In August, a Coca-Cola executive in Istanbul told me their Baghdad operation is not far behind. Turkish investors in partnership with local Iraqis have built modern hotels in Basra. Cameras and reporters do not lie, but they do not always give a full perspective. Political brinkmanship devoid of context breeds panic. Beheadings and blood sell copy, but do not accurately reflect Iraq. Political milestones give a glimpse of the often-unreported determination that Iraqis and longtime visitors see daily. Bombings and body bags are tragic. But they do not reflect failure. Rather, they represent the sacrifice that both Iraqis and Americans have made for security and democracy. The referendum, refugee return, real estate and investment show much more accurately--and objectively--Iraq's slow but steady progress. Michael Rubin, a resident scholar at the American Enterprise Institute, is editor of the Middle East Quarterly.