In Defense of the Speculator
In the view of most economic illiterates, speculators do not bake bread; they do not supply medicines; they are AWOL when it comes to working on the shop floor; they don’t teach math or the cello. They are thus parasites on others who do supply such needed everyday goods and services.
Here’s a real-life quote from someone who really ought to know better about this matter. “These high-frequency traders … make enormous amounts of money, billions and billions of dollars, and do nothing of any social value for the economy,” said Len Burman, co-director of the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution. “They’re just kind of the modern-day equivalent of skimming pennies out of the till.”
In the view of John Kemp, a market analyst from Reuters, “[c]ommodity producers and consumers have long blamed ‘speculators for distorting prices that should be set by physical supply and demand.'”
It will come as yesterday’s news that the speculator is perennially under attack by the social justice warriors. If Bernie Sanders has not yet inveighed against this type of market activity, you can bet your boots that it is on his to-do list.
Article from Mises Wire