Mountain View, CA (PRWEB) February 5, 2008
What affect has the presidential nominating process had on income property values? Before answering this question, NetGain reviewed the history of Presidential elections versus economic downturns. Instead of the traditional definition of an economic downturn, NetGain examined the number of significant declines in economic activity spread across the economy and lasting more than a few months.
During the past 100 years (1908 - 2008) there have been 26 Presidential elections. During this same period, there have been 20 economic downturns and only five of these have occurred during a Presidential election. The obvious conclusion is that a Presidential election does not influence the economy. What the candidates are saying about the principles that affect the United States of America is important.
The United States of America is a Federalist Republic whose economy is based on Capitalism. The term Federalist refers to the fact that the United States is a number of partially self-governing states with a central (federal) government. Republic refers to the fact that delegates are elected to represent the people. Capitalism is an economic and social system in which the means of production are predominantly privately owned and operated within a mainly free market economy.
When Presidential candidates support these principles underlying the United States of America, income property values will do well. Conversely, when candidates don't support these principles, income property values will not do well.
A new phenomenon happening during this Presidential election is the two-year nominating experience. The good news is that this increased exposure has brought large numbers of people into the political process. The bad news is that the lengthy nominating period is costly, and consequently increases the candidates obligation to the people and institutions that underwrite them.
Net Gain Real Estate is a wholly owned subsidiary of NetGainR.E.Inc. In addition to bi-monthly essays, investors may also find a comprehensive due diligence checklist, capitalization rate recommendations, an extensive question and answer section, and a composite index of REIT data at http://www.netgainrealestate.com.