The shocking story of how networks of Mates have come to dominate business and government, and managed to rob the majority of ordinary Australians of half our wealth.
'This book will open your eyes to how Australia really works. It's not good news, but you need to know it.' - Ross Gittins
'You'll be shocked at how far the Mates have their hand in your pocket.' - Nicholas Gruen
Australia has become one of the most unequal societies in the Western world, when just a generation ago it was one of the most equal. This is the story of how networks of Mates have come to dominate business and government, robbing ordinary Australians.
Every hour you work, thirty minutes of it goes to line the Mates' pockets rather than your own. Mates in big corporations, industry groups, government departments, the halls of parliament and the media skew the system to suit each other. Corporations dodge taxes, so you pay more. You pay more for your house and higher interest rates on your mortgage, more for your medicines and transport, and more for your children's education and insurance, because the Mates take a cut.
Rigged uncovers the pattern of political favours, grey gifts and information-sharing that has been allowed to build up over two decades. Drawing on extensive economic research, it exposes the Game of Mates as nothing less than cronyism on a grand scale across Australia and how we have fallen behind other countries in combating it.
More a book for public servants or anyone that has a solid understand of the political and beaureaucratic machinations of the spheres of influence public, private, regulatory and judicial bodies operate. Got lost a bit with the lingo at times.
The authors state their case for how those in positions of power (who they, somewhat strangely, refer to as "James" and his "Mates" through the entire book, for simplicity) have, since the 1970s and the beginning of neoliberalism, systematically and systemically taken advantage of the common man ("Sam") via direct and indirect corruption. This seems to exist in both the usual suspects - banking, mining, real estate, construction - but also in healthcare, ride sharing, universities, private schools and so on. Neither the left (unions) nor right (businesses, with a particular vitriol for consulting firms and lobbyists) are spared from their probing into the ways this coordinated mob look out for each other by shutting out competition, scratching each others' backs and keeping the government happy to ensure they are provided first dibs on any new projects, and input into any new policies being considered.
Their solutions of citizen juries, a wide spread reintroduction of state owned companies to compete on the free market, minimising consulting, lobbying and privatisation, and a range of independent/international bodies to review government decisions in these industries seem more utopian than anything, although I do admire their broad reaching look at and desire to reverse what seems to be a progressive and insidious hollowing out of the common good for the benefit of a few.
This entire review has been hidden because of spoilers.
A book everyone needs to read and that acts as a reminder why we need to be aware and vigilant about what is happening in politics and other public spheres as it affects our everyday lives. This book is written so that you can easily understand complex business and economic situations. I thought the constant reference to games of mates and Sam's and james was a bit much but I understand why it was done - just a bit annoying but otherwise a well researched book.
This book follows the release of Game of Mates in 2017, which for many people was an eye-opener for how ordinary Australians are being ripped off.
“This is the story of how networks of Mates have come to dominate business and government, robbing ordinary Australians… Mates in big corporations, industry groups, government departments, the halls of parliament and the media skew the system to suit each other… Rigged uncovers the pattern of political favours, grey gifts and information-sharing that has been allowed to build up over two decades. Drawing on extensive economic research, it exposes the Game of Mates as nothing less than cronyism on a grand scale across Australia and how we have fallen behind other countries in combatting it.”
There are chapters on property development (re-zoning, planning, approvals), privatised infrastructure, superannuation, mining, banking, and the many other Games. They cover a very wide range of areas, sometimes dipping down into granular details while mostly navigating a higher perspective.
The authors point to four necessary components of the Game of Mates: “grey gifts”; a group of Mates; “a suite of reliable signals that can be used by current and potential members of the group to prove their loyalty”; and a plausible story to show why the Game is good for society (referred to as “a cloak of myths”)…
Grey gifts are discretionary decisions over the allocation of things that have large private value, but are not priced. These grey gifts are traded as favours between the Mates (who include politicians, senior bureaucrats, business people, lobbyists, and many other political elites). Mates thrive in complex systems of regulation, because they can pay lawyers/advisors to navigate this maze, and they can convince politicians or bureaucrats to provide them favours. Hence, by making the regulatory system more detailed and complicated it can actually tilt the playing field in favour of Mates (hurting ordinary people)…
This book is a great read for the age of distrust that we currently live in. Highlighting the various economic classes of people and specific elites is often shied away from, because it doesn’t suit the Mates to have a spotlight on their power/privilege. Murray and Frijters have certainly shone a bright light into these dark places. Good on them for publishing this in black and white (even more interesting would be the stories that weren’t printed, and the context for their narrative).
Firstly, I applaud both authors for the extensive research they have provided for audiences. I particularly agreed with the chapter on corruption from property developers and thought it was very important that this was raised.
My main issues with this book was not so much the content, but rather the style of writing and format. There were a lot of very important topics covered in this book, but the language was heavy with jargon that only those in the public service would be familiar with. As a result, I could only recommend this to those who already have background knowledge of the topics.
As well as this, I felt that while the book was well-researched, there were too many topics that the authors would have been better off making a series (as one of the other reviewers said), rather than trying to condense it all into one book. These are very heavy concepts and would have been better communicated in more depth in one book each, rather than briefly in a single volume.
It's a shame because I was really keen about reading this and did like the overall theme. But had this research been written in a more accessible way, perhaps this would help to draw more attention to such pressing issues for wider audiences.
I live in a lucky rich country and I'm getting screwed by the unseen forces of mateocracy. The wealthy connected ones shift the tax burden to the working poor and the windfall gains from property rezoning and resource extraction are shifted god knows where. It's not a conspiracy, but it is a creeping sickness. If it was co-ordinated and well planned I would be even more thoroughly fleeced. It's just mates looking after mates. Of course it is. The Jobs Summit that finished today has just thrown breadcrumbs. I despaired while reading this. How do we start to recover our egalitarian mythos? We need new thinking and different actions. Murray suggests some, but really, we have got to wake up.
The signature of this book is it's discussion of favours: particularly favours arising from the discretion of high-level decision makers. The thesis of this book is that discretionary matters which create value somewhere may be 'gifted'. It is difficult to argue these gifts are bribery because they are often intangible, or abstract, or the gift-value link is obsure, or the whole affair is too convoluted for the average person. But the examples provide evidence that it is happening.
If people see that being a parasite of the public's funds is rewarded then it won't be good for us as a community. The book outlines what I don't want my country to be, and I think most people would agree. It presents some urgent debate about how we do business in this country. Australians need to stop Auburn council antics. We need to create value, not just capture it, and definitely not steal it.
The book only looks into the business of property developers, toll roads, banks/superannuation and mining leases. There are probably more examples they could have looked at.
This entire review has been hidden because of spoilers.
Brilliant book. This is how the real economy works in Australia (and most of the world). Very depressing but it's important to know this stuff. Wish it had an index - would make a good reference book.
One of the few books that I know will inform the way I see the world and the governments response to issues. Written for non-economists and non-politicians alike and very digestible. I think I will come back to this in the future and think I will have to buy myself a copy rather than just borrowing it.