Opinion & Commentary
Modern perils in a lucky country
What is the state of our nation? For the most part, Australians are better off than they have ever been before. On average, the people of Australia are healthier, wealthier, more educated and more active than at any other time this century. Yet the picture is not entirely rosy. Where things have changed for the worse, the changes have been dramatic and unrelenting.
On the positive front, life expectancy reached a new high in 2000, and death rates reached a new low. Even male youth suicide rates, which have increased markedly over the last three decades with little sign of abatement, have shown a significant decrease in the most recent statistics. The 1999 suicide rates for 15-19 and 20-24 year old males are the lowest in twelve years.
Educational attainment is on the rise. The proportion of the working age population with a bachelor degree or higher doubled between 1984 and 2000. This more highly educated workforce is reflected in the changing nature of occupations. Managerial, professional and administrative occupations now comprise 36% of the workforce compared to 17% in 1966.
With the increase in skilled workers has come an increase in Gross Domestic Product. Australia is one of the top ten richest nations in the world. Analyses by overseas think-tanks have shown a direct relationship between economic freedom and per capita income, and Australia rates well on all measures of economic freedom except labour market regulation.
One of the more surprising trends, given recent talk of Australia’s lack of commitment to research and development, is that total expenditure on R&D has increased by almost 50% in real terms since the late 1960s. This increase has been primarily fuelled by business investment in R&D, demonstrating the importance of considering all funding sources, not just taxpayers.
Government expenditure quadrupled in the last four decades, with the biggest increases in spending going to education, health and social security. Such massive investment in public services attests to the fact that Australia is, despite statements to the contrary, a compassionate country. Welfare payments in excess of the poverty line bear this out.
Health care has also been a major beneficiary of increases in public spending. Although numbers of nurses have declined over the last decade, there were still three times as many doctors and nurses per capita in 1999 than at the beginning of the century.
Growing government expenditure is necessarily accompanied by increasing taxation. If taxation revenue as a proportion of gross national income is converted into days of the year, it is possible to calculate ‘Tax Freedom Day’ – the symbolic day on which people stop working to pay off the national tax bill and start working for their own benefit. In 2000, ‘Tax Freedom Day’ was April 21st – the 111th day of the year. In 1901/02, it was January 23rd.
Offsetting the tax burden over recent years have been decreases in the cost of many goods and services. For example, the average cost of long distance and international telephone calls dropped by 25% and 50% respectively between 1997 and 2000. Home loan interest rates are the lowest in thirty years.
So, in reviewing our nation’s progress, there are many positive stories. But there are also trends that do not bode well for the future. At the heart of these are crime, drug use and the wellbeing of children.
Taking the last of these first, statistics on child abuse and neglect show that children in non-intact families, that is living apart from one of their natural parents, are statistically eight to ten times at greater risk of child abuse and neglect than children living with both of their natural parents. They are also twice as likely to suffer a mental health problem. These statistics are troubling enough alone, but given that there are a growing number of children living apart from a natural parent, this is serious cause for concern.
Like all developed countries, Australia has seen a rise in the use of prescribed, legal and illicit drugs, at least over the last several decades. Use of antidepressants increased by 250%, while prescriptions of medication used to treat Attention Deficit Hyperactivity Disorder increased by a massive 1400% over the 1990s. Tobacco smoking, especially by men, has continued a fifty year decline, but there is a tendency toward heavier drinking in recent years.
Between 1985 and 1998, the proportion of teenagers aged 14-19 who had used an illicit drug rose by 55% to become a majority. The statistics on opioid (usually heroin) overdoses show a steep and steady rise in death rates over the last thirty years, with the biggest increase in the most recent twelve month period.
A perhaps related trend is the escalation of crime rates, particularly violent crimes, in the last few decades of the twentieth century. The rise in violent crime rates was driven primarily by assaults, which increased by a factor of forty between 1964 and 2000, and by almost 50% between 1993 and 2000. While it is possible that more people are reporting crimes, rather than more crimes being committed, it is reasonable to argue that the opposite may be the case.
All in all, Australia is a nation in the midst of profound social and economic change. Taking stock of our progress over a long period of time is important, so that we can more reliably assess trends and make predictions about the future. It is not enough, however, to congratulate ourselves on our successes and make excuses for our failures. It is necessary to examine what has led to the changes we have witnessed, both positive and negative, and to act accordingly.
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About the Author:
Jennifer Buckingham is Policy Analyst at the Centre for Independent Studies.
