You’ve all seen the headlines: Gas prices are headed for record highs and inflation is tame.
How do you reconcile the two?
Most people fall back to blaming “speculators”. But if that sounds like an over-simplified cop-out, its because it is.
To blame rising prices on speculators is like blaming getting hurt on crashing your car. While its true you got hurt in a car crash, you don’t respond by outlawing car crashes, or in this case, speculators. It would be useless to do either.
Instead, you outlaw the reason why the car crashed. For instance, outlaw poorly-made brakes.
When it comes to rising energy prices, you look at why there are so many darn speculators.