How the Australian game actually works

If you’re not playing the game you’re getting played.

How do you get ahead in Australia?

A bit of hard yakka, some application and commitment, and a little bit of luck, right?

Australia is the land of opportunity, right?

It’d be nice to think so, but this is just not the Australian economic model.

The Australian economic model is to capture your own piece of economic turf, and to protect it at all costs, even if that means screwing over the general public.

This isn’t just a bitter rant because I had a bad experience on a tram. This is actually the way the Australian economy is organised.

Take a look at this chart here from Deutsche Bank. This is market concentration for the major industries in Australia.

Basically, there’s only two industries in the whole of Australia that aren’t dominated by a handful of companies.

For mortgages, the Big Four banks control 77% of the market. For airlines, the big two control 95% of the market. For online real estate listings, the top two control 90% of the market.

Pretty much, unless you’re using a truck or going to a shopping center, you’re going to get gouged because the big players know they can get away with it.

All business considerations – pricing, product quality, availability – all of these are solely aimed around protect your piece of turf against the other player in the duopoly. It’s definitely not about delivering value for money for consumers.

And pretty much all of the glorious future that the free-market economy promised us – well you can chuck that out the window. None of that holds in unfree markets like monopolies, duopolies or oligopolies.

It is not a consumer’s paradise. It is a rent-seekers paradise.

Now I’m not here to lead a revolution. The truth of it is that even though things could be a lot better, they are actually still pretty good.

I’m only pointing it out to say that in the Australian economy, if you’re just putting your head down and banking on your hard-work being rewarded, you’re likely to be disappointed.

It’s just not that kind of economy.

It is an economy for game-players. From the top on down, the people and organisations that get ahead are the ones who learn how the game works, and play it well.

That might still involve hard work. But I really think that hard-work without knowing how the game works isn’t going to get you very far.

And so that’s what I see my role as. I’m here to help people learn how the game works. I’m here to help them understand just what’s going on so they can maximize the rewards to their efforts.

And property is a game like any other. You might think you’ll make your fortune by buying a solid property and leaving it to the market, but I doubt it.

You’ll be fodder for those who know how the game works, and are working it to their advantage.

That might be regrettable, but what are you going to do about it? Lead a revolution and fundamentally change how the Australian economy works?

Good luck with that.

My advice is just accept that it’s a country for game-players.

And then get your game on.

Spiro Kladis
Managing Director, Cashflow Capital

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Leave A Reply (2 comments so far)

  1. ron goddard
    3 months ago

    hi spiro,

    its all so obvious. you are right. our leaders are cream puffs. and our banks are hungry cream puff eaters. oz cannot be blamed for the general chaos within for it is all man-made. plato (your ancestor)said it all : democracy leads to corruption. our nice country of oz was not created by has been buggered up by us. financially, environmentally and morally. its all a big charade run by the circus in new york and london. however we can do for ourselves here as long as we trust in ourselves. how much wealth do you want to survive here in oz? how much wealth do you need?
    its a solemn oversight by the western civilisation regarding a way to live. to want more is to get less.

    cheers, ron

  2. ojhn
    3 months ago

    Interesting view but no answers, what’s the cost to become enlightened and wealthy?