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Comment by solatic

Futures markets improve the affordability of the resource by its actual consumers by stabilizing its price. Unpredictable prices, even if they end up being low, hurt consumers by requiring consumers to keep cash in reserve just in case the (remember, unpredictable) price swings wildly. That cash in reserve is cash that cannot be spent elsewhere, be it necessities like food or luxuries produced elsewhere in the economy.
parent solatic 5 years ago

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