Are people in the world around us spiritually dead?

Yes. Scripture indicates that people around us are spiritually dead. II Corinthians 5:14–15 reasons that if one died for all, then all were dead. The context applies this to living in a world full of spiritually dead people. Ephesians 2 is then cited as the supporting passage.

Les explains that II Corinthians 5:14–15 teaches that Christ died for all, which means all were dead. He recalls a pastor asking, “Do you realize we are living in a world of dead people?” and clarifies that this describes a world full of spiritually dead people. He then directs listeners to Ephesians 2, especially verse 1, as sufficient for this line of thought, comparing Scripture with Scripture so it all fits without compromise.

2 Corinthians 5:14

For the love of Christ constraineth us; because we thus judge, that if one died for all, then were all dead:

Why are all people spiritually dead and called children of Adam?

Because Adam fell, his fallen nature was passed to every human being, making all people members of Adam’s family and a fallen race. The text says that if one died for all, then all were dead, confirming universal spiritual death inherited from Adam. This is why every person is called a child of Adam and is spiritually dead.