Do the poor want to be poor?

‘Justice Gavai’s comments on freebies overlook people’s struggle for survival: Brinda Karat’, The Hindu, February 14, 2025:

CPI(M) Polit Bureau member Brinda Karat said the recent remarks on freebies by Supreme Court Judge Justice B.R. Gavai fails to recognise the struggle of India’s labouring class for survival in the face of “rampant unemployment, precarious nature of work and low wages”.

In an open letter to Justice Gavai on Friday (February 14, 2025), Ms. Karat urged him to reconsider his comments as they could prejudice social opinion against those receiving social benefits from the government.

Justice Gavai made the remarks on Wednesday while hearing petitions on the shortage of night shelters for the urban homeless in the national capital. During the hearing, he had asked whether untrammelled freebies lull the poor into a parasitic existence, depriving them of any initiative to find work, join the mainstream, and contribute to national development.

Kudos to Brinda Karat for raising this counterargument and for asking Justice Gavai to reconsider his views. Aside from “prejudicing social opinion”, Justice Gavai’s observation also goes against a fact that social scientists and behavioural economists alike have repeatedly established: the poor don’t want to stay poor, they don’t like to stay poor. This extends to the degree to which they are comfortable about leading a “parasitic existence” as well as vexes the allegation that they are devoid of initiative.

This is why, Justice Gavai may be interested in being reminded, researchers and policymakers have found the most effective welfare scheme in various countries worldwide to be simply giving poorer people money to spend as they see fit. Studies of social welfare schemes in low- and middle-income countries have even found that giving households money to spend doesn’t affect whether their working-age members want to work.

If Justice Gavai’s concern is that the poor stay poor and don’t seem to be able to exit poverty, he should redirect the force of his words at how easy it has become to slip into destitution in contemporary India and at initiatives that render direct benefit transfer schemes — including handing out money — more frictionless.