John Steward of Jesus
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The function of the speculator

September 4, 1980

Price is the method by which producers are told that they should produce more (rising prices), or consumers are told that they should consume more (falling prices). Equilibrium is found when the greatest amount of goods is produced over time. The successful commodity speculator is the one who best reads these price signals and amplifies them so that the message is heard more quickly. Thus he performs a service in facilitating the speedy adjustment back to equilibrium. To the extent that he does this, his service to society is far greater than any of his profits would suggest. To the extent that he fails to do this, he deserves his losses and needs no sympathy.

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