I have a similar reaction, but I find it hard to explain what it is about this picture that puts me off. I think part of it is the mismatch between the highly detailed painting and the cartoony pose and expression of the girl. The way people captioned it in this comment section also reminded me of a cartoon. “You should see the other guy”, sure, but if that captures the entire painting (and I think it does), why put so much effort into it? A simpler style could have conveyed the same message. And don’t get me wrong, I don’t think all realistic paintings are a waste of effort, but this painting isn’t realistic, it’s just detailed.
It is a bad thing, it’s not like they planned it ahead of time and prepared for the consequences of population decline. The entire system is designed around a growing population and if that growth turns negative, so does the government’s budget.