"Sarah Adams" wrote in message
...
It seems we're getting closer and closer to becoming Aussies every
day.
Who here thinks the idea unspeakable that NZ becomes part of
Australia?

http://www.dailytelegraph.com.au/new...-1225753248311

Maybe its because I am an Australian, but whenever I am in NZ some Kiwi will
start a discussion on whether NZ should become part of Australia - perhaps
the 7th and 8th States.

I have never heard an Australian discuss this topic, ever.

Australia's economy is seven times larger than New Zealand's. In rough
terms, Australia's economy is normally growing at a rate that means every
four years it has grown by more than NZ's entire GDP. Australia has the 18th
largest economy in the world, NZ is the 60th. Combining our economies would
only lift Australia two places to 16th. Big change for NZ, very little
change for Australia.

The plain fact is that we love you guys, but a political union makes very
little change to Australia's economic position and hence it isn't on the
radar over here.

There would be huge disadvantages for NZ, as they would effectively lose
control over their own monetary policy. Most economists would argue that
this would be a bad thing for NZ, due to what are called "asymmetric
shocks" - the Oz and NZ economies are sufficiently different to require
different monetary policies.

It may happen, one day, because the NZ economy is small enough to be at risk
from currency speculators and hedge funds playing pump and dump. That would
be 8 times harder if NZ was part of Australia.

Unless NZ is eventually forced to do so, you are probably better off on your
own.