Warlords

Webster defines warlord: a local ruler or bandit leader with some sort of military following in a district where established government is weak. For example, take Afghanistan where our well-trained but poorly equipped troops are serving.

The warlords typically exact a price to pass safely through their territory or a percentage of the costs of all goods bought, sold or traded. They enjoy the economic benefits and social status by force or threat of arms.

It is as old a system of ‘governance’ as is known – might is right. Countries, or parts of countries, run by a tough guy and his cronies. It is not uncommon even today and can be mostly found in what we call ‘third world’ countries. Or in a couple of the larger, more powerful nations we will not mention by name. We are so fortunate here in Canada not to have warlords to deal with everyday.

Or are we? Are we held to ransom by some aggressive tyrants (Webster again) in our daily comings and goings? Some would characterize the former Premier of Ontario, Harris, as a tyrant for his aggressive stances on Health, Education and privatization of whatever aspect of your life was touched by the Common Sense Revolution.

One hears that our former Prime Minister, Chrétien, was virtually a tyrant in caucus meetings. And we know how tough he could be with his choke holds. At least we have the opportunity to boot these petty warlords out of office every few years.

Are there other warlords who hold us to ransom each day? I am thinking of the warlords who raise their gasoline prices every holiday weekend. Despite our grumbling to our concerned politicians, the petroleum warlords continue to bluff their way to huge profits with stories of supply and demand, power blackouts, wars in far-off places, and the ‘futures’ market. No mention of greed and price fixing.

The current poster-of-the-day warlord is the insurance industry. The citizenry are nearing rebellion on insurance rates so the government is making noises about imposing controls. Of course the insurance warlords will only slip around the legislation and use the same excuses: supply and demand, power blackouts, wars in far-off places, and the ‘futures’ market. They will likely throw in rising health care costs as a closing argument. No mention of greed and price fixing.

The drug warlords are another example of tyrants stepping in where the established government is weak. No, I am not thinking of the illegal drug trade but of those warlords who hold patents (thanks, Brian) on drugs for which we will pay ransoms for many years.

Older readers may remember when a generic pill for pain relief called ASA first came on the market and how we couldn’t believe this was the same pill marketed for years by a drug warlord. Generic drugs have cut into the profits somewhat but new designer drugs and pills pop up daily. Can you imagine the profits to the warlords on those blue pills that cause men to run singing from their homes every morning? Yes, it may be for the common weal, but are we being held for ransom in our bedrooms by some drug warlord?

Some warlords move into new territories and force out smaller competitors by mass-buying and price cutting. They woo the consumer with lower prices but after the competition disappears, they reduce the quality of goods and we are locked-in by lack of local choice. Oh, you too bought one of those sweaters that lost its shape on second wearing? At least we got it ‘on sale’, right? And those light bulbs made in China that were too short to make contact were a real deal!

But we soon tire of warlords. We little folk will band together and overthrow the despots by force of arms or by ballot. We will walk our loonies to other stores, even if it means shopping out of town.

In the instance of the Insurance Warlords, we will find ways of self-insuring ourselves, whether it is for health benefits or home or auto insurance. Already there are those who tire of the gouging of the insurance warlords who are trying to cover their investment losses with premiums for risk insurance.

Businesses can form cooperatives and set up insurance companies off-shore where they can legally collect premiums from themselves (a tax deductible expense) and then eventually pay themselves dividends on these ‘expenses’. Their costs go down and the old insurance warlords lose customers. The warlords may have to crawl further into bed with the government to get protective legislation.

The same thing is happening to the banking warlords. After years of milking the consumer with high service charges, they now face competition from virtual banks and the cooperatives (Credit Unions). Some people, fed up with the abysmal interest rates offered by banks have resorted to stuffing shekels in socks again. Gold pieces are best for this since the mice might nibble on paper currency.

These economic warlords are still a bargain compared to the Taliban, Amins or Saddams of the world. We can be thankful that our Canadian warlords do not shoot us. They only empty our pocketbooks.

I suppose it is all a matter of perspective.