Despite Australia's high GDP-per-person and low unemployment rates, national happiness is declining. Recent polling from the Australian National University and Deakin University indicates that life satisfaction has dropped significantly, with ANU reporting a decline from 7/10 in 2019 to 6.2/10 in 2026. This psychological slump correlates strongly with high inflation and cost-of-living pressures, which disproportionately affect regional residents and those without post-school qualifications. Research suggests that economic growth fails to offset the perceived degradation of living standards caused by inflation. This sentiment fuels political shifts, as evidenced by the surge in support for the populist party One Nation. Studies indicate that inflation surprises often drive voters toward anti-system parties, unless such shocks are mitigated by significant increases in real wages, which can insulate the population from populist surges.