“In long run, we all are dead” said Keynes. This is reiterated by Ex-PM Manmohan Singh, when speaking about Demonetization. Mr.Singh who is often soft spoken, also termed demonetization as “Organised loot, legalized plunder”. Is it (Demonetization) really harming nation? Read on
How many of your relatives or friends really maintain their black assets in cash form? You might be finding it hard to recollect the names, because, majority of black assets are in form of either Land or gold or often both. So, attack on black assets is ruled out. But yes there might be a fraction of people who maintain currency in their safe wallets, but the number of those people is not even decimal to 10th digit when compared to nation’s population. Hence putting major middle class and poor population into trouble for bringing out black money is not a smart idea.
Another example of Black money being bigger than currency is every year black money gone out of economy is 30 lakh crore which is way bigger than total currency notes.
How many fake notes have you seen in your entire life time? 10? 20? If you are into business where currency flow is mandatory in day to day business, you might have seen hundreds as an extreme case. According to Indian Statistical Institute (ISI) Kolkata reports only 400 crores out of 14 lakhs crores currency are counterfeit, which is 0.000002 %. So, halting the entire nervous system of country just for sake of ailment which amounts to 0.000002% is not advisable. So, step against counterfeit currency is also ruled out. Ever heard of demolishing a mountain to take the rat out? Well, this is that.
If you have 1000 worth notes, it is enough if you carry 100 notes, to have a sum of 1 Lakh. By introducing 2000 worth note, it is even simpler and now you can carry 1 Lakh in your valet. SO this increases the chance of corruption in Govt offices. So corruption eradication is ruled out.
This step, by now has become “Construction of bridge which is being built to fall”
We might be seeing WhatsApp shares and Facebook shares of Modi’s followers on Demonetization saying the step is towards good of economy. Let us check the worthiness of this statement.
How many of you have seen daily labour getting paid via Bank Accounts. How many of you have seen road side vendors using paytm before Demonetization. According to Economic times, Online Payment in India Accounted For 14% only, which is way too low. Before getting everything under digital, we should also check what kind of Infrastructure is available to make the economy cash free. We should also take into account that, only 1/5 or 1/6 of money in India is channelized via banks and 70% of business happens via liquid cash. A sudden overnight decision to make currency cash less will not work. Halting 86% of money transaction is not good for GDP of a growing economy like India. It’s like pulling our nerves of Human body.
So, above are the reason, we thought could help you understand our perspective and we don’t want to mention that there were people standing in front of ATMs in hundreds and we don’t want to mention that ATMs were not properly calibrated to give out INR 2000 notes, as these problems are known to everyone. Because these are experienced by majority of population including you, unless you are millionaire or billionaire. If you are from that elite group, you don’t need this article. Sit back and relax.
