Monopolies Stink

In the world of free trade and capitalism a monopoly shouldn’t exist. In fact if you pick an industry on the stock exchange you should see several different Company’s names listed to illustrate that there is competition. In this way one Company cannot dictate supply and thus prices toward their own benefit and conversely at the expense of the general consumer. Although our government would argue that there are no monopolies I am here to tell you that is baloney. Two of the largest monopolies in Canada are in the Banking sector and the Gasoline delivery system (Oil Companies). When you look at the listing of Companies in each sector they all differ however in practice they are all the same. Because of this, the true benefit of competition to the consumer is never realized. Take banks for example and compare their products against one and another. Interest rates on loans, mortgages etc are generally within a ¼ point or closer and the savings vehicles are much the same. In fact except for their logos and colour schemes you could easily forget within which bank you are doing business. They have all dropped tellers and personal service and replaced it with ATM’s. They all offer the same services, on-line, telephone banking etc. and they all charge fees for every service regardless if you are now doing it yourself or not. Once in a while they will run specials but very rarely and for the most part do not add up to much savings over the long haul. Now look at the Oil Companies and ask yourself how many “independent” gas stations have you seen lately in and around large municipal areas. Hardly any and in fact some of the so-called independents are really arm’s length businesses owned by one of the large Oil Companies. Have you ever experienced a gas price war in the last 20 years? Have you ever seen more than a .02 a liter price difference between competing gas stations? When prices go up at one end of town at the Sunoco station how is that even if you break speed limits to get to the Shell station at the other end of town you will find the price will be the same price there as well. The oil Companies have gradually changed almost all stations to self serve, quasi-convenience stores that also charge you for air to fill your tires. Like most convenience stores you pay top dollar for the word “convenience” and get just a smile (if you are lucky) in return. The last time I looked Canada was a large oil producing and exporting nation, so why are our gas prices on average, higher than those in the United States? This is what happens when the Government effectively controls industries by dictating operating conditions through such vehicles as the National Energy Policy and the Bank of Canada which sets the interest rates for the Banks. Somewhat smaller in size but another example of a government monopoly is the Liquor Control Board of Ontario. Can you imagine how much less you would pay for wine and liquor if it could be sold on the open market without government’s sticky fingers involved? It’s a shame we have given so much control to government because it has become a monstrous and cumbersome giant which feeds on its citizens like the old Kings of yesteryear. Give ¾ of your crops to the King and he will allow you to live on his land if you can survive without starving.