South Africa's education spending shift leads to lower growth, higher welfare.
The article analyzes the effects of public policies on economic growth and welfare in South Africa. By simulating different fiscal policy scenarios, the researchers found that shifting government spending from education to transfers has a negative impact on GDP growth in the short term but increases welfare. On the other hand, cutting taxes leads to long-term growth but reduces welfare. Overall, the study shows that changes in government spending and tax policies can have complex effects on the economy and people's well-being in South Africa.