Freebies culture – A dangerous trend
The “Freebies Culture” has become a major concern, especially during elections when political parties promise free goods and services to lure voters. What started as subsidies for the economically weaker sections have now expanded into an unsustainable trend, creating a society of free riders? This practice not only burdens taxpayers but also weakens public sector undertakings (PSUs) and distorts the economy.
The concept of free rider problem
A free rider is someone who benefits from resources, goods, or services without contributing to their cost. This phenomenon is increasingly visible in societies where political parties offer free electricity, free transport, and even direct cash transfers to large voter bases. While such measures may seem beneficial in the short term, they create long-term economic inefficiencies and financial instability.
Political competition and dirty politics
Political parties engage in fierce competition to outdo one another in offering free benefits. What started, as a necessity for the poor has now become a tool for political gain. Instead of focusing on sustainable economic growth, politicians indulge in populist measures that drain state resources and lead to massive fiscal deficits. This trend ultimately burdens taxpayers, as they must compensate for the financial losses incurred by PSUs and government agencies.
Economic losses and PSUs
The widespread offering of free transport services and other utilities leads to financial distress for PSUs. These companies, meant to function as self-sustaining entities, end up accumulating losses due to revenue shortfalls. The funds used to cover these deficits could have been invested in infrastructure, healthcare, or education, benefiting society as a whole instead of fostering dependency.
Implications of freebies culture
- Increased fiscal deficits due to uncontrolled government spending.
- Decline of PSUs and other public sector institutions.
- Reduced economic productivity as individuals rely on government aid instead of work.
- Higher taxation to compensate for the losses caused by free schemes.
- Distorted market dynamics leading to inflation and poor resource allocation.
- Cause of concern for the parents as their children look for freebies
International examples: The case of Venezuela
The impact of freebies culture is evident in countries like Venezuela, where excessive subsidies and free provisions led to economic collapse. The government’s reliance on oil revenue to fund social programs resulted in hyperinflation, food shortages, and a complete breakdown of public services. Similar trends can be observed in other economies where populist policies have taken precedence over sustainable development.
Conclusion
The freebies culture is a short-term political gimmick with long-term consequences. Instead of focusing on vote-bank politics, governments should work towards creating employment opportunities, improving infrastructure, and ensuring economic stability. Sustainable policies, rather than excessive handouts, will lead to real progress and prosperity.
