The article explores how different public policies can impact income inequality and economic efficiency. By analyzing the effects of transfers, taxes, and public investment, the researchers show how these policies can directly and indirectly influence income distribution. They use a model to simulate the impact of these policies on inequality and GDP growth in South Africa. The findings suggest that a strategic combination of these policies can help reduce inequality and increase economic growth. The study also highlights the importance of balancing public and private capital to address market inequality effectively.