Episode 10 of my – Podcast – Letter from The Cape – is now available.
In this episode we learn why it is pointless for the government to set fiscal targets in terms of size of deficits etc. The purpose of fiscal policy is not to achieve any preconceived financial numbers. Rather, the government should use its spending and taxation tools to advance societal well-being, which includes ensuring there are sufficient jobs for all who want to work; providing first-class public infrastructure and services (including health, education, transport, etc) and ensuring that everyone can participate meaningfully in society. These areas of concern represent the goals that we want government to pursue. We should assess the current fiscal position only with reference to how close the government is to achieving these goals.
Duration: 8:06
