What do you think of commodity speculation? I think it can certainly add volatility as well as reduce. ============================================ Henry George explains how speculation in commodities — products of labor — is very different from speculation in land. Speculation in labor products, as in futures markets, serve the socially useful function of regulating supply and demand — for example, stimulating production of goods when people bet on their prices increasing. This serves to smooth out supply fluctuations, decreasing overall volatility in the economy. The opposite is true of land speculation. Because land is not produced, increases in demand for it can do nothing but increase its price. Price increases create higher expectations for future price increases, creating a self-inflating speculative bubble. henrygeorge.org/bust.htm
Posted on: Wed, 19 Nov 2014 03:06:44 +0000
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