The Economy, Stupid The price of mental illness
Jan 15, 2026
Steve Robson, a health economist and former head of the Australian Medical Association, and Jenny Gordon, an economist at the Australian National University, delve into the costly cracks in Australia's mental health system. They discuss the complexities of mental health treatment, emphasizing the need for social supports like housing to reduce illness. The duo highlights why mental health often takes a backseat in productivity agendas, and they call for integrated early intervention strategies, especially for disadvantaged communities and children.
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A Tragic Case Exposes System Gaps
- Joel Couchy was homeless, diagnosed with schizophrenia, and fell through treatment gaps before the Bondi Junction attack.
- Steve Robson links Couchy's trajectory to systemic failures in ongoing care and social supports.
Schizophrenia Is High-Impact And Resource-Heavy
- Schizophrenia disconnects people from reality with hallucinations and delusions and drives major hospital use.
- Steve Robson highlights its severe mortality impact and heavy demand on hospital resources.
Big Benefits, Low Political Salience
- The Productivity Commission estimated large economic costs and large net benefits from reforms, yet mental health has low political traction.
- Jenny Gordon links the issue's invisibility to it not fitting short-term productivity agendas.