The economy IS improving...if you were able to get this job, I'm sure you can get a better one!
NO job is worth ruining your health and/or making you feel anxious and miserable when you are at work.
I put up with a miserable boss for two years - it turned out he had been hired with the directive to get rid of everyone in the office - all 12 salespeople (we all had great pensions, 401Ks and other benefits). The plan was to have him bully and demean us into quitting, so they could reduce costs and get the company ready to sell. The harder we worked, the nastier he got!!!! They didn't want to fire us - the company unemployment insurance would go up.
I was the first one to finally throw in the towel - I started my own freelance business. In 6 months, 10 or the 12 of us had left - everyone ended up doing better and making more money. The sale is in a few months, and he was just let go - his mission had been accomplished.
I think women are programmed to try and make the best of bad situations - to try and make everything "better." Men are more willing to move on if they feel they aren't being treated well.
Look into all your options...and best wishes!!!