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Surprise, Surprise

The economy isn't performing exactly as expected.

12:00 AM, Oct 3, 2006 • By IRWIN M. STELZER
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Finally, we have the surprise of continued growth. The economy has slowed but not stalled. Edward Lazaer, chairman of the President's Council of Economic Advisers told a Senate committee last week that he expects growth to slow in the remainder of this year, but proceed "at a robust pace in 2007 and beyond." He reported that "weakness in the housing sector does not seem to be spreading to other sectors of the economy".

More surprises are in store, not all of them on the economic front. In the political arena, Republicans will be surprised if they fail to retain control of the Senate and Democrats will be astonished if they prove unable to ride a wave of dissatisfaction with the prosecution of the war in Iraq to control of the House of Representatives. And on the home front, lots of Americans will be surprised when they find that they can't get the prices for their homes that were theirs for the taking only a few months ago.

Irwin M. Stelzer is director of economic policy studies at the Hudson Institute, a columnist for the Sunday Times (London), a contributing editor to The Weekly Standard, and a contributing writer to The Daily Standard.