Greg Sheridan in The Australian recently warned that Australia is a nation in decline — from rising debt to falling fertility and a loss of hope. At the heart of it all? A spiritual vacuum we’ve tried to ignore.

Greg said, “Across every indicator you can imagine — economy, living standards, social cohesion, crime, health, military capability, the creativity and virtuosity of the arts — we’re in serious decline.” Greg did not address the spiritual nature of the decline, which is the cause of the decrease in the rest of the indicators. If you have no knowledge of our Creator God, who made us in His image and loves us enough to send His only son to pay the price for our rebellion against Him, then you will get the outcome we have. It results from sinful men doing what they think is best for themselves; the strong rule over the weak.

As faith diminishes and social upheaval sets in, the state steps in to fill the spiritual void, offering itself as a stabilising force, a surrogate provider, and a substitute for God. But the more power we give it, the more of our finances and freedoms we are forced to surrender.

Greg’s Weekend Australian article has caused no small stir, not just for its bold thesis, but for the arsenal of facts Sheridan marshalled to support his case.

Families that can’t afford a home and struggle to pay for life’s necessities stop having children. Mums and dads forced to work longer hours spend less time with their children — and each other. Young people who believe a stable future is beyond reach stop aspiring. And as the national debt balloons, mental health declines, and anxiety and despair set in, our institutions lose their legitimacy and Australia’s social fabric frays.

In short, economic woes are a fast track to social declension — and Greg Sheridan has rightly lamented both in his sobering analysis of mid-2020s Australia.

The Numbers Behind the Decline

On Australia’s economy and living standards, the situation is dire. Our national debt has now surpassed $1 trillion, not including the billions in hidden, “off-budget” borrowing. Just paying the interest on that debt costs Australians $27 billion every year — and that figure is only rising.

At the same time, productivity — the output of each worker — has fallen by 5% under the Albanese government, while real incomes have plummeted 8% in just three years — the worst performance of any nation in the OECD. Additionally, Australia’s top tax rate kicks in at lower income levels than in the US or UK, meaning that Aussies are taxed more even as they earn less.

Housing is no better. The median house price is now nine times the average income — and in Sydney, it’s a staggering thirteen times. By contrast, in the 1970s and 80s, house prices were just three or four times the average annual salary.

Is it any wonder, then, that Australia’s fertility rate has crashed to 1.44 children per woman? This is a historic low for our nation, and global data suggests it will be extremely difficult to reverse, even if the economy improves.

Australia’s education standards are also dropping:

• Australian students are 4 years behind top Asian countries in maths
• In 2023, 15-year-olds performed like 14-year-olds from 20 years ago
• 1 in 3 students failed basic reading and maths in 2024
• We spend more than the OECD average per student but get worse results

Our health is also going backwards:

• Two-thirds of Australians are overweight or obese
• Life expectancy is now dropping
• Suicide is the leading cause of death for Aussies aged 15–44
• Youth mental illness is up 50% in 15 years
• Australia ranks second after the US for rising mental health issues

If all that weren’t enough, energy, mining, and manufacturing — once the backbone of Australian prosperity — are now in steady retreat.

Electricity prices have climbed significantly, driven by costly Net Zero policies. While a mixed energy grid that makes use of gas and coal would be more affordable, Australia is doubling down on renewables. By contrast, the so-called “big emitters” — China, India and the US — no longer believe in Net Zero, putting Australia out of step and limping behind. Amid these developments, we’ve lost critical industries like urea (used in fertiliser), plastics, and nickel, which are vital to our economic sovereignty.

Australia’s commitment to Net Zero has seen the closure of coal-fired power stations — once the backbone of our competitive advantage — in favour of costly renewables. As energy prices rise, Australian manufacturing has entered “terminal decline” and now makes up the smallest share of GDP of any nation in the OECD. By contrast, China is building 421 GW of new coal power while we’re shutting down our last 21 GW.

Just days after Sheridan’s article went to press, former federal MP Craig Kelly published an X thread featuring 26 graphs that painted a very similar picture.

Job growth is now concentrated in the debt-funded public sector, not in productive enterprise. Australia’s bureaucracy is among the most bloated in the world, and the cost of government continues to grow. With our economic complexity rating falling, fertility rates collapsing, and younger Australians losing faith in the future, Kelly argues, we’re at risk of becoming the first generation to pass on a country poorer, weaker, and less free than the one we inherited.