As we stand at the threshold of 2025, it’s hard to ignore the chaos at the foundation of the political-economic systems that dominate modern society. The cornerstone of neoliberal thought—competition driven by individual interests—has shown its inherent contradiction for all to see: cost of living, unaffordable housing and the corruption of western democratic systems by corporate interests.
A core premise of neoliberal thinking is simple: if everyone works for their good, society as a whole will benefit.
While the idea of individuals striving for their own betterment through competition may seem rational, it is built on an illusion. A system that thrives on individualism inherently overlooks the inequalities embedded within it. Competition in the marketplace, rather than fostering innovation for all if unregulated, inherently ends up concentrating power in the hands of a few.
The Illusion of the "Invisible Hand"
The foundational logic behind neoliberal economics is rooted in Adam Smith’s idea of the “invisible hand,” where the cumulative actions of self-interested individuals result in societal benefit. In theory, competition would lead to innovation, the spread of ideas, and overall improvement in living standards.
However, the reality is far different. The very nature of competition implies that some will inevitably win. Over time, each win means accumulating wealth and power for the winners. In such a system, those at the top gain more resources, influence, and control, often at the expense of others. This creates a system where the rich and powerful exploit the system for personal gain, leaving the working class to bear the brunt of the consequences.
The Inequities of Unregulated Competition
Unregulated competition assumes that all participants have equal access to resources, information, and opportunities. In practice, however, it is the wealthy who have the power to shape the system. They control the means of production, have access to better education, and wield influence over the political landscape. As a result, the “free-market” functions not to solve collective problems, but to reinforce existing power structures.
The disparity in power results in an economy that is not only inequitable but also unsustainable. It’s not just about the distribution of wealth—it’s about how the very fabric of society is structured. Those with the most wealth have the resources to influence and write the rules to ensure that the game of life remains rigged in their favour.
Corruption and the Perpetuation of Inequality
Competition also breeds corruption because as individuals and corporations strive to secure more resources, they employ every means at their disposal—often bending or breaking the rules to maintain their advantage. This leads to a cycle where only a small, elite group remains on top, perpetuating their control over the economy and society.
What we see today is a system that rewards exploitation rather than collaboration, individual gain over collective prosperity. The rich and powerful, insulated from the effects of their actions, continue to extract wealth, while the majority of society faces stagnation or decline.
Capitalism and the Government’s Roles
- The socio-economic system we live in today is underpinned by neoliberalism, which argues that wealth accumulation for private interests is not just a personal right, but the foundation of a thriving society. Yet, this economic theory ignores the collective impact of these actions—often resulting in environmental degradation, social dislocation, and economic instability.
Governments, corrupted by the billionaires and their corporate lobbyists far too often act to protect the interests of the wealthy rather than the welfare of the public. They pass laws that allow corporations to exploit the working poor and undermine environmental protections.
A few examples from 2024 in Australia include:
- Cross-party improvements in Federal Environmental Legislation quashed by pro-mining last minute intervention from the Prime Minister.
- Federal approvals to extend and open new coal mines, despite impacts on climate change and the Great Barrier Reef.
- The ongoing scam that is tax benefits and royalty schemes of the Australian Gas industry.
In the end, we are left with a political system that favours the top 1% wealth hoarders, while the interests of the public such as affordable homes and healthcare, are neglected.
A Vision for Collective Prosperity
To address the systemic flaws of neoliberal capitalism, we must shift our focus from individual gain and wealth accumulation to collective and shared prosperity. The idea that individual wealth creation leads to societal benefit is outdated. We need a radical rethinking of how wealth is generated and distributed.
By prioritizing the collective good, we can create a system where wealth and power are shared more equitably. This requires a shift in how businesses operate, how governments legislate, and how individuals approach success. Profit should no longer be the sole driving force behind decision-making in organsiations. Instead, we must redefine wealth as the creation of value for the collective benefit of society and the planet.
The Magnificent Transformation: Purpose-Driven Change
At the heart of this transformation is a purposeful reimagining of how organizations and governments operate. By embedding purpose at the core of business strategies, we can drive meaningful change that benefits all people, not just a privileged few. This is what I call the Magnificent Transformation—a shift toward purpose-driven digital transformation, where technology serves the public good and the pursuit of wealth benefits all stakeholders.
Through collaboration, innovation, and a commitment to collective prosperity, we can move beyond the constraints of individualism. Together, we can create a future that is not only economically prosperous but also socially just and environmentally sustainable.
