Ultimate Welfare State: Why Not Extend ‘Free’ To All?

Have you noticed? Politics is following the rules and practices of businesses. The tactics both deploy to expand base and achieve quick positive results are the same. The marketing and manpower acquisition strategies are similar. Parties are no longer ideological entities, they are brands competing in a market place.

Businesses offer price cuts and buy one-get-more options to entice consumers. The freebie offer from politicians is somewhat similar. The voter is the consumer they need to win over and retain. The association has to be long-term. The only difference: while businesses have their own money at stake, it is not so in the case of politicians. The promises they make come at cost to the economy and the cost is borne by the taxpayer.

In times of highly competitive politics, everything is fair game – from free electricity to free foodgrain to free laptops to unemployment dole to free liquor to free meat to whatnot. Welfare economics has surely taken a bizarre turn. It’s no more about specific goods or services at subsidised rates or about the long-term goal of making people productive and self-reliant through limited government intervention. Welfare schemes sought to balance revenue and expenditure. Not so the case anymore. On display during elections is ideas of reckless profligacy. Businesses are mindful about their balance sheets while offering get-one-free-with-one-bought schemes. They are accountable to their shareholders for losses finally. In the case of politicians accountability is virtually non-existent. They would justify their promises claiming them to be welfarist.

How is free laptop or farm loan waiver welfarist? It’s difficult to wrap one’s head around it. The spending on health, education or mid-day meal scheme has long-term benefits for the society. So subsidies in these are acceptable. A free laptop is a straightforward bribe for votes. Politicians, of course, understand that the freebie culture is the road to economic disaster. It curtails scope for capital expenditure essential for growth. But who’s going to make them stop?

The practice is turning the relationship between the voter and political players purely transactional. Like customers choosing the business outlet offering them the best deal, voters are being coaxed into the habit of seeking out the political party that offers most freebies.

Cynical observers would say it’s only fair. Because after the election day, the politicians would be too distant and the voter irrelevant. It’s best the latter extract what they can as direct benefit and as promise for future benefit during elections.

The middle and upper classes have been complaining about the freebie culture for long. Ultimately, they feel, it’s their money that finances the profligacy. To take the cynicism forward, why not make foodgrain free for all Indian citizens? Why not make water and electricity free for all? Why not make loan waiver uniform across classes? It’s only fair that all citizens should enjoy equal privileges.

Economics can wait. It’s for politicians to manage. Politics like business must seem to be fair.

(By arrangement with Perspective Bytes)