Last year, when oil prices went nuts, there were cries from everywhere that the government needed to step in and limit the manipulation of prices by speculators that was keeping prices artifically high, and we’re getting close to the point of seeing those new rules become law.
But the Federal Government has done the same thing since the 1930s, and the FDR programs have generally been considered a “good thing”, at least by FDR Democrats. The Federal Government sets artificial price levels and limits the down side risk to farmers – that if the crops are plentiful and prices would normally drop due to excess supply and low demand, the taxpayers jump in and buy up the excess crops and put them in government storage. The social purpose is that by protecting farmers from losing money, we make sure there will always be a stable supply of food.
What’s the difference? Why is it okay for government to manipulate prices?