Just as ordinary people the world over are abused by the higher prices commodity traders create,
How does that work?
A commodity trader is just a fancy form of wholesaler.
Do we say that grain elevators, cash and carry supermarkets, cause higher prices for consumers?
Higher prices for producers, possibly, but that is to producer\’s benefit. And lower prices for consumers, as having that wholesaler in the middle is more efficient than every plumber in the country trying to have a direct contract with the lead smelter for some solder. This greater efficiency allowing higher prices received by producers (net) while simultaneously allowing lower prices for consumers (net)….which is exactly what higher efficiency actually means.
How are prices made higher by commodity traders?
And if they were made so, why wouldn\’t everyone by trying to contract direct?
Hell, I\’m a commodity trader and I know damn well why people buy from me, despite my making a profit from it. Because it\’s cheaper for them to allow me my profit than to do all the dreary searching around the world to find scandium independently. Instead of 20 people all doing the same work I do it and everyone gets a timeshare in the work done and a time share in the costs of having the work done.
Does the division and specialisation of labour mean nothing to him?