The main reason for the quadrupling of prices was due to the monopoly created by OPEC.
OPEC(Organization of the Petroleum Exporting Countries) is an international organization of eleven developing countries that depend on their revenues from oil exports as their primary source of income.
As the cost of home loans goes up, many consumers are squeezed out of the market, leading to a slowdown in home sales.
With homes on the market for longer periods, sellers tend to drop their asking price to attract buyers.
During the mid-1970's, we experienced an energy crisis which more than quadrupled the price of oil in the U. The outrageous oil prices resulted in long lines at the gas pump, increases in airline tickets, and steep increases in all goods that were deliverable.
There are several reasons as to why the increase occurred, but none are more relevant than the creation of OPEC.According to the Bureau of Labor Statistics, the median weekly earnings for full-time wage earners was 7 in the fourth quarter of 2017 – 0.9% higher than a year's earlier, although the CPI has risen 2.1% since then.You would assume that higher inflation means higher prices for real estate, and that is often the case, at least at the start of a significant spike in inflation. To keep inflation rates under control, the Federal Open Market Committee (FOMC) often steps in and raises the Federal Funds Rate, which is the interest rate charged to other financial institutions using the Federal Reserve Bank.But rising prices hit the lower and middle classes especially hard.Higher food, gasoline and utility costs mean less money remains once these necessities are paid for, leaving little for savings or discretionary spending.The causes a lot of social problems which at its extreme form, cause social unrest.Over the years, our wants and needs have increased.In food, clothes and almost all consumer goods, there is a wide variety and greater choice. Too much or too little rain could raise the prices of vegetables. The unrest in the Northern Province could also contribute to the distribution difficulties and may tend to upscale the prices.Almost all prices of food items and other consumables could go up on the increase of transport costs.Although economic recovery is far more complicated than any single factor, lower interest rates have helped the devastated housing market begin its slow recovery since 2008.With pay increases lagging behind rising inflation, you can expect your wallet to continue to take a beating as the cost of living increases in just about every aspect of daily life. Although you may need to cut back spending in some areas, don’t let today’s high prices discourage you from saving for tomorrow’s needs.