India, March 26 -- Families with shrinking incomes and vanishing jobs give away gold rings, copper cooking pots, and small savings tucked away for children's school fees.

Poor people send money to other poor people. They do this with a determination that defies every textbook on rational economics.

This deserves our full attention because, beyond being heartwarming, it is economically risky and morally complicated.

Kashmir's economy has sputtered for years. Youth unemployment sits at levels that would spark tensions in most democracies. Tourism, the region's historical lifeline, arrives in fits and starts. Apple orchards face climate shocks. Small shopkeepers watch margins vanish as prices for essentials climb.

In this environment, ...