> To be clear, "price stability" in this case means a higher price compared to absence of government intervention. Depends on how it works. There are a few dif

> To be clear, "price stability" in this case means a higher price compared to absence of government intervention. Depends on how it works. There are a few different cases. One is for a commodity where increased supply and lower cost does not increase demand much. Rare earths are like that. The cost of the metal is a small part of the cost of the finished product. A drop in rare earth prices will not increase motor sales much. So overproduction from multiple sources will crash the price. This is why commodity prices are so volatile, despite relatively constant supply and demand. A slight imbalance in supply and demand produces huge price changes. Here's the historical price of copper.[1] The price has varied over a 4x range in the last 15 years. 2x in the last 5 years. Futures trading can help stabilize prices, but too much futures trading relative to the actual commodity can increase volatility. [1] https://tradingeconomics.com/commodity/copper https://tradingeconomics.com/commodity/copper