Canada: three oligopolies in a trenchcoat.
Bank service charges and overdraft fees can infuriate consumers, and more choices could lower their temperature.
From the perspective of investors, though, Canada’s cozy network of oligopolies – in which a few players dominate one sector – can look very different. Slim competition can keep upstarts out and profits in, driving strong shareholder returns and attractive dividends over the long term.
“We have a handful of oligopolies that are able to fend off new entrants (whether regional or foreign) without needing to destroy profits for an extended period of time, or where we need a government financed solution,” Ian de Verteuil, head of portfolio strategy at CIBC Capital Markets, said in an e-mail.
Honestly, if we needed ologopolies because of our population/geography, why are they so profitable? They should just be getting by.
Break up the ologopolies.
Remove unnecessary/ineffective regulation that has been hijacked to promote protectionism.
Make all infrastructure a publically owned utility. If services can be offered on that utility efficiently via the private sector (roads, rail, ICT “digital highways”) then let any company use them at a rate that supports sufficient maintenance, repair, and I provements.
In general, ban rent seeking.
This isn’t that hard. It’s not happening because the political and bureaucractic classes have been captured by big corporations and we have no real choices.