"Speculators" smooth markets

Look at the difference in price volatility between onions and corn.  Back in 1958, onion growers persuaded Gerald Ford (!) to sponsor a bill in Congress banning 'speculation' (aka:  forward markets) in onions.  In contrast, Corn has a deep and active forward (future's) market.  Yet if you listen to our political masters, you will hear the opposite - 'speculators' 'drive up' prices.  When in fact, the existence of robust futures markets reduces risk and smooths price volatility for everyone.  Just ask the onions.


It works for oil too.  Ain't economics amazin'?