About the Blog

This is my diary....what I make sense of, around me. You'll find short prose on contemporary topics that interest me. What can you expect - Best adjectives? …. hmm occasionally, tossed around flowery verbs ?…. Nope, haiku-like super-brevity? … I try to. Thanks for dropping by & hope to see you again

May 11, 2025

Beggary at Traffic Junctions – A Reflection

If you’ve ever waited at a busy traffic signal in any Indian city, you’ve probably witnessed the familiar sight: beggars swarming cars, tapping on windows, extending hands, and sometimes selling trivial items. They hunt in pairs, sometimes in larger teams, aiming to extract money in the precious 30 or 40 seconds before the light turns green. It’s a perfectly timed act of desperation and strategy, an organized dance of need and guilt.

Beggars at Indian traffic junctions



What I find particularly irritating is not just their persistence, but the fact that some motorists, in their generosity, unknowingly extend the wait time for everyone behind them. A few seconds of alms-giving often lead to a ripple effect of delay, while the traffic builds up and tempers flare. Yet, police officers stand seemingly indifferent, oblivious to the mounting congestion and the plight of impatient motorists.

What’s striking is how organized this street-level operation appears. Each member of the team has a role:

  • The youngest of the gang usually carries a cloth or a wipe, rushing to your windshield before you can protest, swiping it with a theatrical flair. You didn’t ask for it, but by the end of it, you feel a peculiar sense of obligation to pay for the effort.
  • The oldest member, typically a frail man with a stick, ambles up to your window, attempting to sell earbuds, pens, or other trivial items. His tired eyes and worn-out appearance tug at your heartstrings.
  • A female member carries a young child, cradling them while she pleads for money, ostensibly to feed the infant. The sight of a child, hungry and helpless, is a powerful nudge to open your wallet.
  • The male member, more assertive, sells balloons or glass sun shields, often approaching with a sales pitch that is hard to ignore in the few moments you have.

It’s a choreographed act, a well-rehearsed routine designed to extract sympathy - and ultimately, money - in mere seconds. But what fuels this response? Why do we feel compelled to give, even when we know it might be part of a larger racket?

The Psychology of Guilt and Enabling


This behavior at traffic signals mirrors something deeper in our psychology. As described in research, financial enablers often suffer from guilt over their own financial stability. They may feel undeserving of their own success and become duty-bound to “help” those who are visibly struggling, even if the struggle is part of an organized act. The same way a financially stable friend or relative may bail out someone who is irresponsible with money, we find ourselves handing out cash at traffic signals, not out of pure generosity, but out of guilt and the desire to relieve our discomfort.

These enablers often discount the role of effort and attribute the misfortune of others solely to bad luck. It’s easier to give a few rupees and feel like a savior than to question the system that perpetuates this cycle. Interestingly, many of these enablers are not big donors to public causes; their generosity is restricted to these close, immediate circles where they can visibly witness their “help” being accepted.

Money, after all, offers power, control, prestige, social acceptance, and approval. Some even hide their own financial strains to continue offering support - whether to beggars at a signal or to irresponsible friends and family. This behavior, while seemingly charitable, can also demotivate, undermine, and perpetuate dependence.

The Broader Social Reflection


If we extend this analogy to our social circles, the pattern becomes clearer. Why does a relative or friend, who is better off financially, continually bail out someone who is financially reckless? Research indicates that the giver often suffers from a kind of “money disorder.” They feel an obligation, rooted in guilt or misplaced loyalty, to step in and save someone from their own financial irresponsibility. And just like at the traffic signal, this behavior only enables the cycle to continue.

The beggary at traffic junctions is more than just a minor inconvenience—it’s a window into our collective psyche. It’s a reflection of how guilt, misplaced compassion, and the need for social acceptance drive us to enable patterns of dependency, both on the streets and in our personal lives.

Perhaps the next time you’re at that signal, instead of giving in to guilt, you might think twice about what you’re really enabling.

May 4, 2025

Capitalism’s Harsh Lesson: Why 16,000 Billionaires Never Existed

 




I. Introduction – The Billionaires Who Never Were

I recently stumbled upon a compelling statistic: Had America's wealthy families in 1900 simply invested their riches in the stock market, spent a modest 2% annually, and maintained average population growth, today there would be 16,000 'old money' billionaires. Instead, there are fewer than 1,000. This revelation prompted me to ponder the nature of wealth preservation.

This isn't just a tale of missed financial opportunities; it's a reflection of capitalism's inherent Darwinian nature. In the economic ecosystem, wealth that remains stagnant is akin to an untended garden, susceptible to the overgrowth of inflation and economic upheaval.

II. The Premise: 1900 Wealth + 2% Spending + Stock Market = 16,000 Billionaires?

The hypothetical is straightforward: if affluent families in 1900 had invested their wealth in the stock market, limited their annual spending to 2%, and allowed their families to grow at an average rate, the compounding effect would have resulted in approximately 16,000 billionaire heirs today.

Yet, reality tells a different story. The vast majority of these fortunes have dissipated over generations. This discrepancy highlights a fundamental truth: in capitalism, as in nature, survival favors the adaptable.

III. Darwinian Law #1: Adapt or Die

In the natural world, species that fail to adapt to changing environments face extinction. Similarly, in capitalism, wealth that isn't actively managed and adapted to evolving markets and technologies is prone to erosion.

Consider the industrial magnates of the early 20th century. Many of their descendants failed to pivot their investments in response to technological advancements, leading to the gradual decline of their fortunes.


IV. Darwinian Law #2: Competition Is Relentless

Nature is characterized by relentless competition, where only the fittest survive. Capitalism mirrors this, with constant market competition challenging the dominance of established players.

New entrepreneurs, armed with innovative ideas and technologies, often outpace traditional businesses. Without continuous reinvestment and innovation, even the most substantial fortunes can be overtaken.

V. Darwinian Law #3: Resource Mismanagement Leads to Extinction

In ecosystems, mismanagement of resources can lead to the collapse of populations. In economic terms, extravagant spending, poor investment decisions, and lack of financial education can deplete wealth rapidly.

The adage "shirtsleeves to shirtsleeves in three generations" encapsulates this phenomenon, where wealth is built by one generation, squandered by the next, and gone by the third.

VI. Inflation: The Silent Predator

Inflation acts as a silent predator, gradually eroding the purchasing power of money. Without proactive investment strategies that outpace inflation, wealth diminishes over time.

Relying solely on the stock market without active management isn't sufficient. Diversification, regular portfolio reviews, and strategic asset allocation are essential to preserve and grow wealth.

VII. Conclusion – Prosperity Requires Participation

The hypothetical 16,000 billionaires serve as a cautionary tale. Wealth preservation isn't a passive endeavor; it demands active participation, adaptability, and continuous learning.

In the Darwinian landscape of capitalism, only those who evolve and engage with the ever-changing economic environment can ensure the longevity of their prosperity.

Feedburner Count