Episode 71; From Lucky Country to Lazy Land: When the State Smothers Markets
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Dec 21, 2025
Hosts dive into the growing tension between state intervention and market dynamics in Australia. They argue that the nation's productivity decline stems from political choices, not bad luck. The discussion highlights a troubling brain drain, with talent fleeing to more competitive environments. Activist government policies are seen as stifling innovation and work ethic. Historical patterns suggest that only crises can spark meaningful reform, raising questions about the future of Australian markets.
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insights INSIGHT
Politics Shapes Market Outcomes
Politics is the single biggest issue for markets because it determines whether the state supports or supplants markets.
Human and financial capital are mobile and will leave if Australia fails to build a globally competitive operating environment.
insights INSIGHT
Challenger Jurisdictions Win Capital
Challenger jurisdictions like Florida, Texas, Abu Dhabi and Dubai attract talent and capital via superior policy choices.
Political choices drive business migration and fiscal outcomes more than geographic advantages.
insights INSIGHT
Australia's Productivity Problem
Australia's multi-factor productivity growth has lagged major peers since World War II.
Under-investment in software and technology is making Australia less efficient and less competitive.
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Welcome to the Complexity Premia podcast by Coolabah Capital, a hosted by Christopher Joye, Chief Investment Officer and Portfolio Manager at Coolabah Capital, and Ying Yi, a Portfolio Management Director at Coolabah Capital. The Complexity Premia podcast strives to deconstruct modern investment problems for wholesale (not retail) participants in capital markets. You can listen on your favourite podcast app, or you can find it on Spotify, Podbean or Apple Podcasts.
In this episode, CJ and Ying Yi debate the rising dominance of the state over markets, arguing that Australia’s declining productivity, capital flight, and ballooning public debt reflect political choices rather than bad luck. They explore why mobile talent and capital are leaving for more competitive jurisdictions, how activist government is eroding incentives to work and innovate, and why history suggests only crisis—not consensus—forces meaningful reform.
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