The Economics of panhandling

The first thing you'll need to do is forget all the bad imagery you have about panhandling. Begging has been around all through history. And will continue to exist, DESPITE do gooder attempts to help those poor unfortunates. Most of whom are not poor or unfortunate. And really don't need or want the help.

The basic panhandler is standing on the street. Sometimes with a sign, sometimes not. The basic plea will be that the mark, or citizen is asked to part with his or her unneeded cash. This could be coin or bill, it doesn't matter. However, cash would be preferred. But the true panhandler lives by the Ben Franklin truism - A penny saved is a penny earned. Regardless of the preferred method, the end goal is "Those that has, Gives to ME!"

Now, let’s say Bob is standing on the off ramp, or on the street corner, or outside a convenience store. He may or may not have a sign. He may or may not be playing a violin. The point is that a request for "Spare Change" is communicated.

Now let’s say Bob is moderately successful in his panhandling efforts. In an 8-hour period he acquires $100.00 in spare change and bills. Bob repeats his activities for the next 4 weeks. Now if Bob panhandles 7 days a week and collects $100.00 a day for 4 weeks, Bob has collected $2800.00 tax free dollars. Here's an important point folks, these are TAX FREE dollars.

Now how can Bob reach that $100.00 goal. Well simple math breaks it down for you. 5 people at $20.00 per, Well, that's a bit much. But then again depending where you're at $20.00 could be considered "Spare Change". But a more realistic goal would be $5.00 max with most of the collection being in coinage with the odd single tossed in. $15.00 an hour will get you your $100.00 goal in less than 7 hours. With the right kind of script, that dollar figure can be reached easily. Don't forget, these are TAX FREE dollars.

You can raise or lower your possible take with the simple use of costume. Throughout history street beggars with physical maladies have been the big money makers. But in today’s modern world of medicine and social assistance, the physical oddity doesn't carry the same weight that it used to. The armless, legless, blind beggar doesn't quite make it today. People expect that those individuals already have help from the multitudes of assistance agencies. But if you are are willing to go a bit further, A second hand wheelchair could help.

The body oddity. It is still seen in the Asian countries. The deformed limbs, disfigured faces, spastic tics, etc. The usual style used in the US is someone in a wheelchair. For some reason American's sympathize with missing legs, but missing arms or disfigured faces aren’t marketable.

There was a time during the 80's and 90's when claiming an AIDS infection benefitted the sidewalk entrepreneur. That's not the case so much anymore. The AIDS victims have joined the Leprosy crowd. The usual public expects that there is a support network already in place. Facial deformities, as mentioned are an iffy ploy. And if obviously theatrical makeup, A definite deal breaker.

A couple of years ago, I watched a new expose of panhandling. One of the ladies profiled was a young lady in Grand Central Station in New York City. She was seated with her back to a column and displayed a sign declaring that her mother was a MS sufferer. When she was interviewed, she admitted that her mother was fine. And that when she tried to use AIDS and other illnesses as her reason to beg, she was disappointed at how much money she was given. BUT that the MS and mother story had been a money maker. The problem was that She appeared TOO healthy. Her AIDS claim didn't carry any weight.

We have all seen the folks standing at the side of the road. Usually with a sign describing some catastrophe that your spare change will resolve. Tell the truth now folks, how often do you even read the sign? This is a case of advertising overload. Standing on the highway off / on ramp is a low return location. There are better locations, BUT the successful panhandler will know the local rules and regulations. Standing next to the cash register inside the 7/11 is a sure-fire ticket, for a criminal trespass warning, or jail, depending on the local laws. Most cities have ordinances prohibiting "Aggressive Panhandling". Following your mark down the sidewalk screaming and threatening is aggressive. Blocking the sidewalk and looking mean is aggressive. Sitting quietly and out of the pathway isn't aggressive. However, some places don't even allow for this style. Highways are also a no-no. You have to know where the border is. One side is a city or county problem. The other side is the Highway Patrol / State Police. The most humorless bunch I've ever met.

While we're on the subject of Cops, they are NOT your enemy, Or your friend. For the most part they are just hard-working folks that put up with way too much crap in their lives. If the cops are called, usually they will just ask you to move along. Best advice, do it. It might be the best spot you've had in your lifetime. But spending a week in jail or worse the ICU isn't worth it. You can always move down to your #2 spot. Then come back tomorrow or next week. NEVER, EVER, FOR ANY REASON argue with a cop. You WILL lose, Every time.

But if you do run into a ticket happy hero, Smile and say "Yes Sir / No Sir". He might write a panhandling citation, or a criminal trespass warning. Again, SMILE and sign the paper. Then move down the road. It isn't worth a night in lockup, or ICU. Also, unless you really don't have ID or there is a warrant out for you, SHOW YOUR ID. Don't lie about who you are, this is another charge of hindering law enforcement. If you have a warrant, don’t act the fool and start running or fighting. You will lose, EVERY time. If they arrest you, stop talking except for the phrase "I WANT A LAWYER." They have to give you a free one. He or she may not be the best, but like the old saying goes, ready for it? "Beggars can't be Choosers".

Now how do you get the average citizen to part with their hard-earned cash. Don't worry, there is always somebody with a tender heart that always has Christian charity in their soul. But you need to think about maximizing your returns. Consider this, what you are doing is performance art. That’s right, you are an artist. You provide the average joe an opportunity to feel good about him or herself.

Props are a good thing, if chosen carefully. A woman cuddling a baby sized bundle of blankets immediately tugs on the heartstrings. Toss in a snowstorm and your mark will be telling everybody they know about helping the "Mother Madonna in a blizzard". It doesn't matter that there was nothing in the bundle. A mangy mutt sitting with a hangdog look, next to the homeless vet will get you at least a 10% increase return on your average.

I once watched an operator working a metropolitan corner. He started out with the standard spare change sign. The next week the sign had added the hungry / homeless / veteran line. The third week He had a dog with him. I watched this, at the time, novel approach. The guy HAD to have reached his $100.00 goal in the first 10 minutes.

Here’s a hint folks, you can tug at the heart strings, but only if they are original strings. If everybody brings Fido, It's just another Fido beggar. There is also a down side on this. If an animal lover thinks you are abusing your pet, they could call the authorities. Either the Cops, or the animal control folks. Or worse yet the ASPCA. And those folks have a public permission to lynch animal abusers.

The week after that the guy had brought the dog. He added his wife, the baby, And worst of all his teenage son. Now I think we can all see what he was going for. If the dog was a winning lottery ticket, the family should secure his retirement in Malibu. WRONG, As I drove by, the son was be-bopping along on his brand new I-Pod. That alone shut that guy down. not only for that day, but also for that location. Because he had spent so much time on that corner and was recognized, permanently. I never saw him again.

This guy made 2 mistakes. #1 he spent too much time at one location. He became recognizable. This isn't necessarily a bad thing. But in the long term it's best to move on after a couple of days. You can always come back next month. He second mistake is obvious. Nobody is going to give squat to somebody rich enough to afford high tech toys for his kid. The lesson here is you HAVE to in trouble. A kid with the latest toy isn't in trouble.

The playing of a musical instrument is called "Busking" and is considered the royalty of panhandling. A service provided for cash rendered. Even a bad musician can collect from the public. However, there is a downside. Because it works, it tends to be overdone. Off key trumpet players next to imitation statues next to street magicians. If you plan on this as your career, choose your location carefully. The Venice beach boardwalk and Times Square are famous for these "Street Performers"

There are also the folks that produce artwork of various types. Usually chalk sidewalk art, or spray-painted portraits. Everybody has seen the sidewalk artist, drawing caricatures of passerby’s. You had better be good at it though. Mediocre art doesn’t cut the mustard. Leave the spiro-gyro at home.

Up to this point I have discussed what most people consider panhandling. But the story doesn't end there. Begging is also big business. And I do mean BIG. Government subsidized, tax funded, BIG. Consider for a moment NPR. National Public Radio is a private, publicly funded business. Bet you didn't know that? It is NOT a government organization. How about PBS? You know "Sesame Street"? Same deal. It is NOT a government organization. But they get a butt load of federal, state and local funding.

The thing about charitable organizations is that there are very few laws and regulations on how they operate. Anybody can start a charitable organization, for any reason. The trick is taxes. Unless the government declares you a "Non-Profit" organization, you need to pay taxes. What this means is that YOU, as a private citizen, can ask for money. For a cause. And there are no rules about how you do it, other than making sure that Uncle Sam gets his share. At the same time, there are no rules on how much the administrators of that charity are paid. Once again, as long as the taxes are paid and uncle Sam gets his cut.

There is nothing to stop YOU from going to your local convenience store and, with permission, putting your mason jar piggy bank on the counter asking to save the albino pigmy vole. And if your little venture tugs at the right heart strings and makes enough money, you too can be the Next winner.

In conclusion, I know some are asking WHY did you waste all this time? Couldn't you have spent it more productively pointing out the benefits of hard work, self-sacrifice, public service, etc. etc.etc. My response is ...

When I worked in New York City I would occasionally come across a guy who had to the be the best street performer in the city. He was some black dude around 40 who played kettle drums near Times Square. At first he was a bit of a nuisance, since I don't like distractions and loud noises when I'm hurrying home from work. The next time I heard him I realized he had a pretty big crowd around him.

That's when I realized why: the guy could PLAY ... and I mean play ANYTHING. Popular tunes, classical tunes, patriotic songs around the Fourth of July, anything anyone requested. That guy must have made a boatload of money out there.

exactly!
I learned that after I gave a guy I saw out in the sun on a corner and I gave him a sandwich and chips I had bought for myself. He put it down and kept holding his sign that said he was needing food, etc. - obviously didn’t need the food.

There used to be a successful panhandler at Dupont Circle in DC who dressed in a business suit. His pitch was “Do you have 85 cents so I can call my office in New York?” It worked. He made about $50-70,000 per year for several years.

Eventually, someone mentioned him to the Washington Post and they wrote a story about him. He wasn’t there a whole lot longer.

“I once watched an operator working a metropolitan corner.”

I love this guy. He makes people who give money to these dudes realize they’re being taken for a ride.

I don’t feel sorry for these people. They set their own working hours and pay no taxes. They chose their job and I chose mine; they deserve nothing from me. We recently had a city program to try to get them off the street, offer job training and such, and less than 5% of panhandlers showed any interest at all. I would be shocked if it resulted in one single job.
Meanwhile, a law was passed to prohibit standing at medians and intersections, so most of them have moved on.

If you watch long enough, you will see a “shift change” where a new individual will come up and take the place of a man and the new guy will get the sign. Anyhow....

I have PROUDLY never given a dime to panhandlers, although my taxes more than make up for it.

I did, once, ask a panhandler for money. It was at a parking meter in Berkeley, CA. I knew the area, saw that he had a bead on me as I got out of my car, but just before he got to me, I patted my pockets and said to him: “Excuse me sir, spare change?” His response was “awwww shit, damn” and he walked away.

“If you watch long enough, you will see a “shift change” where a new individual will come up and take the place of a man and the new guy will get the sign. Anyhow....”

No surprise. I’ve also heard of street-corner fights, over who gets to work that spot. But in Houston that doesn’t happen, because they all have to be licensed and work by the rules of their licenses. Probably the same in most other cities...and not something the mayors like to talk about.

Where to begin?

There is a guy who works the corner of my local Safeway.

He has a sign and a gas can asking for help.

I call him "gasbum"

I haven't had the nerve, but I've many times wanted to offer gasbum a free fill up.

I'd just love to see the look on his face when he has to carry five gallons of gas around.

I'm certain that gasbum would refuse "help". And he'd probably pour the gas down some sewer.

It just amuses me thinking about gasbum toting 40lbs of fuel for any length of time.

I’ve noticed that as well. I rarely see Black or Hispanic men on corners begging for money. Usually about 80% white men, 20% white women. I have never seen an Asian asking for money.

They always come out at every intersection on Sundays, hoping that some preacher has given the congregation a guilt trip over the poor and needy.

The best one was the guy on crutches, pretending to be crippled. If you were driving the other way, though, you could see his bike in the bushes behind him.

In Kansas City we had a guy named Jerry. He had some physical problems but Jerry panhandled areas like the Country Club Plaza shopping district for forty years. Finally the IRS went after him in the early 1990s. Found our he was not reporting 80k in annual income from his highly pushy endeavors.

They work their chosen sidewalks outside each city church as well. Even in Spain , you’d see the same “grandmother” outside the doors as each different mass ended. But I’m paying 52% income in total taxes. Getting cash tax free means you need to only work 20 hours a week.

I once saw a ‘ Hurricane Katrina refugee ‘ panhandling in Boston.

She had the thickest, loudest Massachusetts accent ever...

She was well known. Used to drag a air bottle around on wheels
with a schtick about not being able to afford heating oil.

” Change fo’a famalee of six?? “

I met a woman who lived in a pretty nice apartment complex in Boston - Miss Katrina refugee was her neighbor.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.