I am less convinced that investment bankers and hedge fund managers are a net boon to humanity, and perhaps it’s not unreasonable to dislike a group of people who make money by destabilizing the entire global economy.

It is probably hopeless to take on this subject without thinking of specific examples. But I suspect that a lot of the wealth accumulated by bankers is earned through speculation and arbitrage, both of which tend to stabilize markets.

Speculators stabilize prices over time. They buy in times of plenty, when prices are low, boosting prices and supporting producers. They then do the work of storing the goods, and sell in times of shortage, when prices are high and producers cannot meet demand, pushing prices down.

Arbitrageurs stabilize prices over place, between markets. The Law of One Price is not a law of nature, it requires people to risk their wealth by buying assets that they believe can be resold elsewhere at a profit. Again, where prices are low they are boosted by this activity; where they are high they are depressed.