When you rub a balloon on your hair or a wool sweater, the friction causes electrons to be transferred from one surface to another. As a result, the balloon becomes negatively charged, while your hair or the fabric becomes positively charged. This process is known as static electricity.
Now, when you bring the charged balloon close to uncharged bits of paper, an interesting phenomenon occurs. The negatively charged balloon repels the electrons in the paper bits, causing them to move away slightly. This creates a small area of positive charge on the nearest side of the paper bits since the electrons have moved away. Since opposite charges attract, the negatively charged balloon is now attracted to the positively charged side of the paper bits.
As a result, the charged balloon can pick up the uncharged bits of paper, demonstrating the principle of electrostatic attraction. This effect can be seen as evidence of how static electricity can influence neutral objects, showing that charges can induce polarization in nearby materials.