What should we do about those food speculators oppressing the poor?

Adam Smith Institute
by Tim Worstall

06/26/11

What the entire speculative edifice allows is the transfer of price risk from the producer and consumer to the speculators in between. So if your concern is that the poor are damaged by food price variability (which they indeed are) then the sensible thing to do is subsidise the poor s access to the speculative edifice so that they can transfer that risk of food price variability to the speculators. Not, as the NGOs and the French President are doing, scweam and scweam that it s all evil and should be banned...

http://tinyurl.com/6havplj


Informant: Thomas L. Knapp



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