Every time someone explains the way short selling or speculative markets work, I have a “oh, I get it…” moment and then forget months later.
Same with insurance… socialized risk for our food supply is objectively good, and protecting the insurance mechanism from fraud is good. People can always bastardize these things.
It is complex. I was going to write out how it works in a simple way that everyone could understand - but then I realized that even though it would be a gross simplifications that are unrealistic, it still would be so complex that people would go "yep I understand that to every step", and then finish and not understand it. Every step alone makes perfects sense and is simple, but the total quickly gets complex.
Even calling this a speculative market is a gross simplification of the truth.