In response to:

Understanding Economics

rosalyn3 Wrote: Sep 26, 2012 1:30 PM
Mr. Williams, please send this essay to Bill O'Reilly. He blames the speculators for our gas prices. He needs to also include the root of the speculation as you have in this article.
Here's a question: If there's a disaster, a war, a severe drought or some other calamity that restricts future supplies of a commodity -- such as oil, coffee or corn -- what is the intelligent thing for people to do right away? If you said "use less now and try to produce more," you'd be absolutely correct. That's not rocket science, but understanding the machinery involved in getting people to do so is a bit more challenging.

The best way to get people to use less and produce more is to allow prices to rise. For example, say a...