In recent times, many political organisations have observed a concerning phenomenon: the proliferation of what is commonly termed the “politics of freebies.” These giveaways, ranging from subsidised commodities to cash handouts and debt forgiveness pledges, are frequently employed as electoral bait. While initially appealing and seemingly benevolent, a closer examination reveals the adverse and enduring impacts they exert on a nation’s long-term well-being. Even the Supreme Court of India has warned that political parties offering freebies risk precipitating economic decline
Here’s why the politics of freebies presents an unsustainable and detrimental approach for a country:
Economic Strain:
Offering freebies inevitably strains the national budget, as significant funds must be diverted to sustain these programs. This diversion often comes at the expense of essential sectors critical for long-term prosperity, such as healthcare, education, and infrastructure. For instance, funds that could be allocated to improving public health facilities or upgrading educational institutions are instead channelled into sustaining freebie programs. Consequently, these sectors may experience neglect, leading to deteriorating infrastructure, reduced quality of services, and ultimately hampering the overall well-being of the populace.
Furthermore, the costs associated with freebies tend to escalate over time. Initially introduced as seemingly manageable expenses, these programs often expand in scope and scale, fuelled by increasing demand and political pressure. As a result, governments may find themselves grappling with unsustainable fiscal deficits and resorting to heightened borrowing to meet their financial obligations. Over-reliance on borrowing not only burdens future generations with debt but also poses risks to macroeconomic stability, potentially leading to inflation, currency devaluation, and even sovereign debt crises.
Culture of Dependency:
The proliferation of freebies fosters a culture of dependency among citizens, wherein reliance on government assistance becomes ingrained as the norm. When individuals grow accustomed to receiving handouts without commensurate effort or contribution, their intrinsic motivation to work hard, innovate, or pursue self-improvement diminishes. Instead of striving for self-reliance and empowerment, they become passive recipients of state largesse, devoid of the drive to seize opportunities or overcome challenges.
This culture of dependency not only undermines individual agency and self-esteem but also perpetuates socioeconomic inequalities. Those who are already disadvantaged may find themselves trapped in a cycle of poverty, reliant on government assistance for their basic needs. Meanwhile, the affluent may exploit freebie programs for their own benefit, further exacerbating disparities in wealth and opportunity within society.
Distorted Priorities:
Political freebies often serve as convenient tools for short-term political gains, particularly during election cycles. However, their implementation often comes at the expense of addressing underlying structural issues and implementing sustainable long-term solutions. Instead of directing resources towards critical areas such as education, job creation, or healthcare infrastructure, governments may prioritise populist measures that yield immediate political dividends but offer little in terms of lasting progress.
This misallocation of resources perpetuates a cycle of neglect, where pressing societal needs remain unaddressed while superficial solutions are pursued for temporary acclaim. For instance, rather than investing in comprehensive education reforms or workforce development programs, governments may opt for superficial measures like one-time cash handouts or subsidies, which fail to address the root causes of poverty and inequality.
Market Distortions:
Subsidised goods or services provided by the government can significantly distort market dynamics and undermine the competitiveness of private enterprises. For instance, offering free healthcare or education may disincentivize private investment in these sectors, as businesses struggle to compete with government-funded alternatives. This can lead to a decline in the quality and innovation of services, as private providers face reduced demand and limited resources for investment in research and development.
Additionally, subsidies may artificially inflate demand, leading to supply shortages or price distortions. For example, when the government provides free or heavily subsidised housing, it can create excessive demand, driving up prices in the housing market and exacerbating affordability issues for low-income individuals who do not qualify for such benefits.
Generational Inequity:
The burden of funding political freebies often falls disproportionately on future generations, perpetuating intergenerational inequity. Whether through increased public debt or deferred spending on crucial investments, today’s giveaways can saddle tomorrow’s taxpayers with the consequences. This creates a situation where current beneficiaries of freebies may not bear the full cost of their implementation, passing on the financial burden to future generations who may not have benefited from these programs.
Furthermore, excessive reliance on debt financing to sustain freebie programs can lead to a vicious cycle of debt accumulation, where interest payments consume an increasingly larger share of the budget, leaving fewer resources available for essential public services and investments.
Corruption and Cronyism:
The implementation of freebie policies can create fertile ground for corruption and favouritism within government institutions. Politicians may exploit these programs to reward their supporters or funnel resources to vested interests, rather than allocating them based on genuine need or merit. This not only undermines the principles of fairness and transparency but also erodes public trust in government institutions. Moreover, the lack of accountability and oversight in the administration of freebie programs can create opportunities for abuse and mismanagement, further exacerbating corruption and undermining the integrity of public institutions. Ultimately, this undermines the effectiveness of government intervention and perpetuates a cycle of inefficiency and malfeasance.
The apparent allure of political freebies often masks their detrimental long-term consequences. While they may offer short-term gratification and political gain, their lasting impact undermines the foundations of sustainable growth and development. Instead of fostering resilience and progress, these policies tend to foster dependency, distort market dynamics, burden future generations with debt, and breed corruption within governmental institutions.
By perpetuating a culture of dependency, political freebies diminish individual initiative and hinder the development of self-reliant, empowered citizens. Rather than empowering individuals to seize opportunities and overcome challenges, they create a cycle of reliance on government assistance, stifling innovation and economic mobility.
To truly advance the well-being of a nation, policymakers must prioritise prudent fiscal management, investment in human capital, and the pursuit of policies that promote equality of opportunity rather than handouts. By fostering an environment that encourages innovation, entrepreneurship, and inclusive growth, countries can realize their full potential and prosper in the years to come. This entails investing in education, healthcare, and infrastructure, empowering individuals to pursue their aspirations and contribute meaningfully to society. Only through such measures can nations build resilient, dynamic economies and ensure a brighter future for all citizens.
Disclaimer: The views expressed in this article are solely those of the authors and do not necessarily reflect the views of any organisation, institution, or entity with which the authors may be affiliated. The authors have taken assistance of AI tools in writing this article. Readers are encouraged to form their own opinions based on their own research and analysis.
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Nishchal Mallya 
Jayaraj Shetty 
