The Quiet Collapse of Australia

Australia often gets called “The Lucky Country,” but how much of its wealth and stability is due to actual ingenuity, and how much is just dumb luck? Looking at the numbers, Australia seems to be doing just fine. The country boasts one of the highest median net worths in the world, ranking just behind Luxembourg. On paper, Australians appear wealthier than Americans, even though their incomes are generally lower. But scratch beneath the surface, and cracks begin to show.
Much of Australia’s wealth doesn’t come from high-tech industries, finance, or advanced manufacturing like other rich nations. Instead, it’s based on two things: selling dirt (natural resources) and selling land (real estate). And while these industries have made Australia incredibly rich, they also put it in a precarious position. What happens when the world stops paying top dollar for Australia’s iron ore and coal? What happens when the real estate bubble finally bursts?
To make matters worse, Australia has developed a deeply ingrained gambling culture that acts as a warning for what happens when an economy prioritizes short-term gains over long-term sustainability. Between its resource dependency and gambling addiction, Australia’s economy might be living on borrowed time.