Friday, June 7, 2013

'Dig it out of the hole in the ground, just doesn't cut it for Australia's economic woes at the present!

In the last few decades much of Australia's dramatic rise in living standard and subsequently a beacon for many NZers, has been due to the capacity of the 'lucky country' to be able to dig their wealth from huge holes in the ground. It is no secret that China's economic boom has been closely related to this phenomenon. Dig it out in the form of iron ore and other metals and send it to China, then bring it back as consumer goods for the ever hungry Australian market, whilst making a handy profit with a degree of trickle down for the workers of Australia. NZ, too has seen some benefit, because if Australia is doing well, so are we to a certain extent. That China has surpassed Australia as our largest trading partner is also significant. All three nations are inextricably tied re combined economic futures.
What now, that Australia is receiving less for its mineral exports? Will the economy become unstuck? Will Julia Gillard's Government be the next victim of this downturn? Would the upcoming beating be as huge if the economy had not been affected by this lessening of export prices? Will New Zealanders considering a 'jump over the ditch,' reconsider their plans? Will those their who do not collect any benefits that NZ offers to the Australians living in NZ need to look over their shoulders and return to NZ?
A new phase in Trans Tasman economic and social ties is about to play out for NZ in Australia and perhaps the flow will reverse, if recent figures continue to grow re the outflow of NZers to Australia. History does repeat and  we often do not learn from it. Hopefully, we will see a reinvigoration of our economy, with the return of our compatriots and the NZ economy will rise---before the worm turns again!