Some contend that it is based on the foundation stories of the capitals. Sydney was set up as an open-air jail in 1788, whereas Melbourne was founded in 1835 by independent settlers seeking new farmland.
By the 1880s, writer Marcus Clarke sought to share the spoils by pointing out that Sydney would probably evolve as “the fashionable and luxurious capital”, while Melbourne would become the intellectual and cultural capital.The article discusses the usual stereotypes (Sydney: glamorous if ditzy, with breathtaking harbour views; Melbourne: Europeanised, full of pretentious people who read a lot and watch art-house films), debunks a few others (Sydney apparently gets twice as much rain as Melbourne, though, of course, being Sydneysiders, they take theirs in spectacular thunderstorms) and states that the coffee is better in Melbourne. That may well be so (it's hard to go past Atomica or Jasper), though the last time I was in Sydney, they had excellent coffee there as well. (If I recall correctly, Campos in Newtown is pretty good.)
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