The Price of Oil and The Price of Your Home
Friday’s edition of the SJR, 7-25-08, reported the rising unemployment, falling house prices nationally and in June home sales for The Capital Area Association of Realtors. Not much good news to be found in these articles, because that is how it is. A reality check, if you will.
Then today, the headlines on page one of the state gas slightly to $ 4 per gallon. You can connect the dots in touch here pretty easily. High gas prices lead to higher food prices, less consumption, sending unemployment up, down home sales, and low home prices.
Research Professor Bob Podlasek the Bradley University confirms what I have stated the reason for the high gas prices, to quote the professor: “We are in a tight situation right now. If the offer is not available, prices are rising. It is so simple as. “
I have found that goes beyond gas, food and utility prices rise, the economy. All this means that if you are a home owner. Whether you are in a position to sell your home, and what the value of your house.
When the professor said about gas prices is the same true for your home. If the supply is high and we are at a record level of homes for sale, and demand is weak, sales slowed to a pace not seen since 2002 on the ground that their value goes down. It is so easy. A reality check on.
The upcoming presidential election will have significant impact on gas, utility and food prices, all of which will sell directly affect the value of your home and the ability to your home.
Here are the stated positions. Barack Obama says he is against additional drilling and nuclear power plant construction. He wants to raise taxes to finance “green” industries, develop alternative energy sources to oil. Obama has also stated that he is not against the high fuel prices, he only wished they had not risen so quickly. He would have preferred a gradual increase.
This plan will do nothing to increase supply, and therefore keep prices high. The result will be less disposable income, because the families a larger share of their income as higher gas, paying utility, and food prices. This leads to less consumption, higher unemployment and inflation leads to higher interest rates. This will result in fewer home buyers with reduced purchasing power and falling the value of your home.
John McCain supports offshore drilling and building nuclear power plants.
This plan will not bring relief in the short term, because it will take two to three years to see the increased supply coming to the market. Futures traders, however, are reluctant to raise prices, with an impending increase in the supply of oil.
The construction of nuclear power plants will stabilize electric prices, and drilling, which is currently prohibited from access to a reported 1st 8 trillion cubic feet of natural gas deposits, which will stabilize home ownership.
I would suggest to add the following. Immediately approve any expansion of refinery permits, which has gone from environmental groups to a halt. Cut to seven years applying for new refineries to 60 days.
Open drilling in ANWR, offshore, and in the continental U.S.
Eliminate the 35% corporate tax on oil producing companies to explore and discover oil in these areas is now prohibited.
Elimination of the Federal Republic of 18 cents per gallon gas tax.
The gas tax to replace the pump with a 10% sales tax on the oil producers for the U.S. oil refineries supplied. Impose 35% VAT on oil for sale placed on the world market.
Retain 25% of revenue for the improvement of infrastructure for the now taxed by the federal government gas.
Hire 5% of tax dollars for grants for science departments offer at each university and college in the nation for research into a viable substitute for oil as an energy source.
Hold able to discover 1 / 2% of tax dollars in a pool on a bonus to the department, the science or invent pay for a viable, affordable alternative to oil fuel.
The race would be just as if Kennedy said, we will send a man on the moon. Oil companies race to deliver more oil, and the science departments race to discover a viable substitute fuel. We all will win.
The reality is that our economy on oil, the jobs of working families, the values of their homes, is the ability to sell their houses, industry, transportation, and welfare dependent. Affordable oil. Whether he likes it or not, that’s the reality. Oil is for the economy as oxygen to our body.
We have increased the resources for the supply of oil, natural gas and building nuclear power plants in an environmentally sound manner, until the day of the altruistic environmentalists, when oil is replaced as the main source of fuel dreams.
This November you will agree. You can vote for a plan with the economic realities of today, responding, or you can vote for an altruistic plan that ignores the economic reality. Your choice. You may vote for higher prices, or you can vote for lower prices. It is so easy. A reality check on.
