Gasoline Prices and The Economy

           Think Gasoline Prices have nothing to do with the recession? Better think again. There is a direct impact on mortgage defaults from higher gasoline prices. Everything we buy goes up when gas goes up. Take a look at the chart on this link and you will see that the gasoline prices during the peak of the home mortgage bust, was at an all time high when the most mortgage defaults occurred.

 Check the link:    http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPM0_PTE_NUS_DPG&f=W
           
         The crisis was recognized in August of 2008 when gasoline prices had been at sustained levels near $4.00 per gallon. It comes down to this for those of us who work for a living:  buy gas so we can go to work or pay our mortgages. The percentage of their income that economists say the average working family spends on gasoline is 8%. Well that is B.S.!  The average household income in my state is $36,338.00. I don't know about everyone else but I spend about $400.00 a month on gasoline right now and that is eating up my budget. You can't budget for it because the prices keep going up and up.
       
        My income does not go up with the gas prices, food prices, clothing prices, etc., all related to higher fuel costs. Right now my gas expenses are right at 16% of my expendable income. I am sure that someone who makes less than me could be paying 30% or more of their income. Gasoline prices have risen more than 33% since December 2010 with no demand reason available. Most of the price increase for a barrel of oil is due to speculation. Oil should not be traded on the open market as a commodity for wealthy individuals and corporations to invest in.
 
       Now here is the real kicker. Oil companies have been making massive profits for years now, and they give nothing back. They take the money from us and sit on it. They are absolutely what caused the home mortgage crisis and they have no one to answer to for it.
 
        I think it is about time they answered to us, the citizens of this country who they are robbing blind. Our elected officials, the house republicans, should be ashamed that they voted to continue subsidizing the big oil companies. The big oil companies statement to the threat of losing their subsidies was that if they lost them, the public would end up paying for it anyway in the form of higher gasoline prices. If anything should be subsidized it should be the pump prices for the driving public in this country!