Rising Gasoline Prices Are Responsible For Falling Home Prices On The GOP Campaign And At Berkeley

One of the strange ideas coming out of the mouth of Rick Santrorum as he campaigns for the votes of the cognitively challenged, is that rising gasoline prices are responsible for the fall in home prices. He argues that homeowners are unable to pay for their mortgages because more of their income is needed to purchase gasoline. He then argues that Obama's energy policies are responsible for rising gasoline prices and for the problems in the housing market. Its no wonder that Santorum also campaigns against higher education. His campaign is dependent upon ignorance.

While we are no longer surprised when Rick Santorum speaks nonsense, we are surprised to learn that a Berkeley economics professor shares Santorum's view that rising gasoline prices are at the root of the housing crisis. Perhaps the state university system in California is showing the signs of budget cuts more quickly than one might imagine. In any case, this article also examines the evidence for the relationship between gasoline prices and housing prices and exposes the problems with that theory.