"Man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely to prevail if he can interest their self-love in his favour, and show them that it is for their own advantage to do for him what he requires of them. Whoever offers to another a bargain of any kind, proposes to do this. Give me what I want, and you shall have this which you want, is the meaning of every such offer; and it is the manner that we obtain from one another the far greater part of those good offices which we stand in need of. It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love."
The above paragraph is extracted from Adam Smith's book, "An Inquiry into the Nature and Causes of the Wealth of Nations", where he says that the 'invisible hand' of the society works because Man is basically selfish. He works towards maximizing his own well being (in terms of wealth, happiness and so on) which leads, knowingly or unknowingly, to the betterment of the society. Given that man depends on others for his sustenance, Smith points out that he could get what he needs either from others' benevolence or by offering something that would interest them. Smith also thinks that the second way is much better as it is scalable and sustainable. I totally agree with Mr.Smith.
Now lets look at panhandling (more widely known as begging) - a social problem that is highly prevalent in India. Though Adam Smith doesn't specifically talk about begging, his indication that depending on the benevolence of others isn't an efficient way of getting things done, shows that begging is an inefficient occupation as far as societal synergy is concerned.
In India, there are over two million homeless people. As the Indian government is not quite proficient in providing employment opportunities to these people, almost all of them take to begging on the streets. Wait, lets not blame the government in Toto. Begging is also the outcome of 'laziness' among people. If one can earn around Rs.40 a day by begging on an average, would they be willing to pull carts or carry loads? Yes, if they have a drive in them to achieve something and plan for the future. But Indians, by their very nature, are short sighted. They live for the day and what better way to pass the day than begging on the streets?
A more cruel story which has been told in the recent past in different movies, is about beggar trafficking. The stories of how small children, the handicapped and aged people are being forced to beg by criminal gangs are grotesque. If this is true, then the law enforcers have to take immediate action.
According to me, the very first step in ensuring that begging stops is to discourage it by refusing to give any money. It seems cruel to say no to a poor guy on the street but think of the greater good. If there is no 'demand' for begging their will be no 'supply'. In time, the beggars will have to find an alternative occupation to fend for themselves which will add to our GDP directly or indirectly.
Think about it.