The crippling economic inequality between the young and old, especially for housing, is starting to show in attitudes towards the system of government.
Fewer than half of Australians aged between 18 and 24 believe democracy is always preferable to other forms of government, according to a new survey conducted by the Australian National University.
For a country long regarded as one of the world’s most stable liberal democracies, the figure should give policymakers pause. Australia’s democratic institutions remain robust, but public confidence in them cannot be taken for granted.
Democracy ultimately rests on something less visible than constitutions or electoral systems. It depends on a shared belief that the system works and that citizens have a stake in the country and a reasonable opportunity to build a life within it.
This idea was central to the political philosophy of former prime minister Robert Menzies. He frequently argued that social stability depended on Australians having, in his words, “a stake in the country” by “owning a little piece of Australia”. Home ownership, secure employment and rising living standards were not simply economic achievements but the foundations of democratic commitment.
A person who owns a home, raises a family and feels they are progressing is far more likely to believe the system deserves their loyalty. The concern raised by the ANU survey is that this sense of stake may be fading among younger Australians.
For many in their 20s, the economic landscape looks markedly different from the one their parents entered. Home ownership, once the cornerstone of middle-class stability, is increasingly delayed or unattainable. Housing prices have dramatically outpaced wage growth, and the deposit hurdle alone now represents years of savings for many young professionals.
At the same time, economic mobility appears less certain. Secure employment has been replaced in many sectors by casualised or contract work, while the cost of living has risen sharply in Australia’s major cities.
“The danger is not that young Australians embrace authoritarian alternatives, but that they become indifferent to democratic institutions altogether.”
Increasingly, younger Australians are questioning whether the system is still working for their generation. The debate about intergenerational equity is no longer confined to economists or policy papers. It is becoming a lived experience for many young adults who feel that the traditional milestones of adulthood – stable work, home ownership and financial security – are moving further out of reach.
Democracies depend on each generation believing the social contract still holds and that the country’s institutions remain capable of delivering a fair go over time.
None of this means younger Australians are turning away from democracy in large numbers, but it may explain why enthusiasm for it is weakening.
From a psychological perspective, people tolerate inequality surprisingly well – provided they believe the system is fundamentally fair. Psychologists see this dynamic often. People can endure hardship if they believe it is temporary and meaningful, but what they struggle with is the sense that the rules have changed. Younger Australians need to feel that they are still living in “the lucky country” – that hard work and aspiration will eventually be rewarded.
When people believe the game is rigged, or that the ladder has been pulled up behind previous generations, trust in institutions begins to erode.
The ANU research hints at precisely this dynamic. Support for democracy was strongest among those who believed income distribution in Australia was fair, and markedly weaker among those who believed it was not. Perceptions matter here as much as reality, and even in prosperous societies, the belief that opportunity is shrinking can quickly undermine social cohesion.
History suggests that democratic systems are rarely threatened by sudden collapse. More often, they weaken gradually as trust declines and citizens disengage from institutions they no longer feel represent them. Economic stagnation played a role in this process across parts of Europe in the early 20th century, and more recently, rising inequality and declining social mobility have fuelled political polarisation in several Western democracies.
The danger is not that young Australians suddenly embrace authoritarian alternatives, but it is that they become indifferent to democratic institutions altogether. Indifference can be just as corrosive as hostility.
When citizens disengage from the system, political life becomes dominated by smaller groups of highly motivated activists contributing to the increasingly polarised tone of public debate.
The ANU findings may be understandable in the current social and economic climate, but none of this is inevitable. Australia still enjoys many advantages that sustain democratic stability: relatively strong institutions, high levels of social trust and a long tradition of peaceful political change. The survey does, however, signal an early warning alarm.
Ensuring that Australians continue to believe they have a genuine stake in the nation’s future is not simply a matter of economic policy. It is central to the long-term health of the country’s democracy.
For decades, Australia’s success rested on the broad expansion of the middle class. Stable employment, accessible housing and rising living standards created a population that believed the system worked for them. That belief has been one of the quiet pillars of the country’s political stability, and if it begins to disappear, the consequences will extend well beyond the economy.
Democracy, after all, is sustained by citizens who believe the system still has a place for them. And that belief ultimately depends on whether people feel they have something worth protecting.
