Wednesday's mini-budget is about two things, spending cuts and tax increases. The Treasury startled everyone with their proposals regarding the reduction of spending, but the Minister later said that the cuts would be no larger than the usual underspending. Can austerity get the public finances on a more sustainable footing? The answer depends on whether you think of the larger deficit as a temporary shock, or a structural problem.

This episode is supported by the Bureau for Economic Research in Stellenbosch and the NWU Business School.

Errors and omissions are my own.