Mr. Prime Minister, you lost the war, the battle and me

It is just the proverbial hiccup, they say- but when hiccups are repetitive, it is a sign of acid reflux, my dear sir.

Edited from the original post on 13 Nov, 2016. It was written in haste and anger.

It has been just a week since you’ve discarded the 500 and 1000 Rupee notes and yet there only ominous signs for this country. I am sure you thought of everything before taking this decision but when you throw in something from the top in a nightmare system that is India, you will not be able to control all its outcomes.

Now we are right back to interfacing with institutions by compulsion. I had only heard of such lines, long hours and shortages in an era gone by. But then instead of taking evasive action or acknowledging the impact, every instance is being dismissed by your supporters as being an outlier case.

My plea is going to deal with the impact and impact alone because, Mr. PM, you are the government and the government is you.

#HICCUP 1, YOU’VE MADE UNACCOUNTED WEALTH, BLACK MONEY AND CASH SAVINGS THE SAME

People save differently.  Some prefer to save in cash and some don’t. It is a personal choice. For those who do save in cash they they are on morally uncertain ground. The distinction between the three types of cash has ceased to exist. In a stratified society such as ours, you’ve suddenly made a personal choice, a public issue.

Social standing, reputations and perceptions are more important in Indian society than the truth. Now one has to deposit money compulsorily, and for those who saved in cash, it doesn’t take long to become the talk of the town. In an economy where 90% of the employment is in the informal and self-employed space, this will be a reality for  many. In any case, morality has been an age old tool to establish social power and dominance, and it will not be long before a new dynamic emerges based on  the distinction of who had cash and who didn’t. It wouldn’t matter if it was black or just legit cash.

#HICCUP 2, YOU’VE SOLD A LOVELY YARN OF A BILLION RUPEES LYING AROUND UNACCOUNTED

You’ve really got the burgeoning, salaried middle class in a state of per-orgasm. Morally, the salaried middle class now feels it has  a one up on their salary paying, business owning masters. We dream that we shall sleep on cash filled mattresses like they do and have now convinced ourselves that there exists such a thing. You’ve just given us, the salaried middle class a validation of our fantasies.

But we forget, the rich have one very strong weapon: money. They buy services to convert their ill-gotten wealth/ undeclared income. Remember the Panama Papers scandal (moneyed class convert their cash to assets or park it in foreign banks)?

The poor, the labour, the white collars amidst several other classifications take measures to save that bit extra and you are selling us the idea that those with tons of it don’t have the same idea or inclination? Who do you think the fool is? But then that answer is clear for we are the fools who have lapped this idea up.

You know what is going to happen- the money in the market which was playing around would be sucked in banks and you can then champion the fact that you’ve single handily have gotten that wealth within the banks. But all you’ve done is just gotten the money available in the economy into the banks.

#HICCUP 3, YOU’VE PUSHED THE STATE OF NORMAL INTO FAR-FAR AWAY LAND

Let me start with the larger picture since you are all about larger good. The state of normal I talk of is liquidity (cash available in the market). Don’t think of urban cities (I hope you’ve travelled) but think of a village and upwards. It will be years before the present level of liquidity achieved. Please don’t ask us to PayTM as a solution. It is not possible everywhere, if you didn’t know. Thus, we have to now deposit our money and then withdraw it in a piecemeal manner. It is assumed that it will all be smooth but everyone does not stay near a bank,  stay in a city or have the luxury of time to carry out this exercise.  But greater good, greater good!!!

You’ve assured the nation yesterday that it is only a matter of 50 days. I have no doubts of your intentions but I am presuming you will delegate this work to the Great Indian System which is not known for its efficiency.It took over half a century for the Indian currency to spread far and wide. As a result, whether I am cycling in Ladakh or motor biking in South India, I can whip out money and I will get a service and will get change in return. Now, I am not so sure that will be the case even in the next 6 months.

Let us take an instance. There is a tea seller anywhere between your city and the next city. She rarely goes to the bank. She uses the same money she earns to return change to customers. She goes to the neighbors’ shop to get change if she does not have enough change. Now the customer won’t pay and if he does pay he won’t take old money as change and the neighbour does not have new money yet or will not part with it. She is stuck. Care should have been taken for such cases. These are not outlier cases. This is the dominant discourse in our country. These cases cannot survive 50 days.

#HICCUP 4, YOU’VE PUT US BACK IN LICENSE RAJ

Although temporarily, you’ve put us back in license raj.

I know of friends and family who have gotten cash exchanged through the back door and then at 6 PM instead of 8 PM the bank informs the queue that the cash has run out. Obviously, it has. It was me, my politician friend, the businessman friend of the manager, the relative of the cashier who have taken it before the person in the queue because the queue does not apply to our class and above. Can you imagine what must be the case in non-urban areas where power is much more rudimentary and violent and the powerful cast the non-powerful aside and get first preference? Can you arrest that social situation?

Scarcity brings out the vultures. And this artificial scarcity has brought them out in droves. There is a vulture personality to all of us and this time it is going to get a free meal . My maid has been paid in 500s and 1000s and now wants to buy ration as usual for Rs. 200 but she will have to spend Rs. 500, otherwise she won’t get any change back. Then there are some traders who take a surcharge on the 500 as a cost of taking the ‘illegal’ note. How do I stop him? Technically, he isn’t wrong. Effectively  you’ve put us at the discretion of the trader.

So you expect us, in addition to the time spent, to initiate complaints and prove them? But then how would that happen? You’ve also slowly but steadily dismantled the civil society spirit and declared  them as an enemy of the state. Now you want individuals to raise the flag- those individuals who struggle for daily existence? Or you want me or the elite of the country to raise the flag? Because we won’t, for most of us it will all be just fine!

#HICCUP 5, YOU’VE WASTED MY TIME.  WHY WERE YOU NOT READY?

So for the greater good, I am going to have to make trips upon trips to the banks and post office, stand in line, and battle institutional apathy because obviously you, Mr. PM, cannot stand in on every dispute. There are banks in the middle of the capital which are not adhering to the work-time set by you! Can you pull them  up? What can you do if a rural bank or a village bank does not operate properly? Will you even get to know?

I have now two 2,000 rupee notes. Thank you for that and the amazing time I had while standing in line .

So many rumours abound and so many instructions given; couldn’t you have made it simpler, faster and easier? Everybody is struggling for a common goal but not a commonly agreed process.

#HICCUP 6, YOU’VE KILLED THE UNORGANIZED SECTOR

90% of our business, trade and economy is unorganized which means that they cannot transact business until some normalcy is restored. By the time everyone manages to withdraw Rs. 2500 a day successfully (dream on) by your calculation it will be done tomorrow perhaps, but by my instinct it will take years.

People cannot earn. People cannot do business. For those with deep pockets they will tide through but for those who don’t, you would be responsible.

#HICCUP 7, ..AND YOU WON’T EVEN KNOW WHO DID IT

Now let’s suppose X has tons of cash lying around, (there won’t be as I analysed above) X will probably not deposit it in the bank as X would incur a 200% tax penalty . Sure, the money goes back to the government treasury (I hope it is not literally burnt, for the sake of the air we breathe) but you will never know who are the ones who are milking the system. I do not know what you could do for that. But then again, I do not have to. You have the resources to come up with something, I am sure.

The source of such wealth cannot be wished away. Those who make black money, are going to be at it again. A new cycle will begin soon or has already begin. This is a one-time reset. Please make the best use of it.

#HICCUP 8, YOU’VE WON THE BATTLE OF ELECTIONS BUT YOU PERHAPS HAVE LOST THE WAR

Maybe this was a super move to outwit your rivals but in either case but you’ve also encumbered everyday life. Perhaps, your rivals in these states will lose. You will win or you won’t. But the impact of this is going to stay in the minds of those who struggled. You may show at the end of December that a large amount of money has come into the system (which is only liquidity in the markets), but none would be the wiser because most of see only what we want to see and believe. Some of us will see through it and you will make your proxies call us enemy of the state. I was somewhat with you till here. But we diverge from here on until you can do something which will veer through my cynicism.

#ACID REFLUX

As I write this I just received a video of you drawing any analogy about a child being denied sweets by his mother and as a result of which the child is creating a ruckus. So effectively, you are calling me an insolent child. But then I never wanted the sweet. Allow me to extend the analogy, in order to deny some child who identity is not known (the black moneyed),you’ve put the entire country on a fast. Thank you for that. Much needed in a rich, fat and spoiled country like ours!

It is illusion that the inconvenience will be for a short while with regard to  normalcy. Of course, your party members do not have cash at all for any elections or they very well took care before the move was made. How do we know they weren’t in on it?

I was sitting on the fence with your government because I cannot suffer fools. But I cannot suffer arrogance and foolishness even more. You know why we decided on a parliamentary democracy as a means to govern? Because we’d rather be slow and not take decisions than take irreversible decisions. Imaginably, you must have a coterie of ‘yes-sirs’ around you who wouldn’t have given you critical inputs.  How could they? It is the greater good.

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59 thoughts on “Mr. Prime Minister, you lost the war, the battle and me

  1. There is one basic flaw (your point #3) – you assume that if money is not deposited, it is lost. That is not true. At the end of Dec31st, Govt will account for all the old notes exchanged or deposited. The amount of old notes that have not come into the system is printed by RBI and paid as dividend to Govt.

    So depending on the amount, it one deposits then he gets to keep 10% to 40%. If not deposited – loses all.
    All money not deposited comes into Govt coffers as dividend from RBI. That is the whole point behind new currency. It is primarily Because of this it is not possible to treat any bearer of old currency differently (your first point).

    Of the 14Lakh crore of 500/1000 notes circulating it is estimated more than 50% is BM. Assume only 50% = 7Lakh crore is black money. Even if 50% is not deposited, then Govt simply eliminated 3.7% Lakh crores black money. Govt prints that much in new currency and owns it.

    Meanwhile a lot of money deposited in banks becomes productive currency instead of lying around idle.

    Regarding the hassles – well, if you undergo a surgery you cannot curse the doctor for the pain. Before full recovery there will be a week of pain.

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      1. Demonetization is a desperate step. We cannot fully predict the extent of damage to the economy. How many millions have we lost because of slowing down of business all over India? If a poor man is not able to do his business for two days and lose five hundred rupees, it is that blood money that the Government gets the liberty to print. If an underprivileged woman in a remote village who has stacked a few thousand rupees is unable to return it, the Government has essentially assimilated it. This is a kind of taxation that will never be completely recognized. The banks gain and become strong at the expense of both the underprivileged AND the black money managers who have been stupid enough to hoard large amounts.

        Liked by 2 people

    1. Almost 80% cash money back with the RBI. I think post deposit actions by government IT department ,ED etc., shall bring out the true picture of quantum of black money .

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  2. Analysis done in complete ignorance…230% penalty does not eat into white money…it’s simply the legal taxes a person owes…1.3x over…like a proper slab…

    Also are you saying that the country in which poverty line is defined as 36 ONE a day…poor will have savings more than 2.5 lacs

    Lastly…how do u know this is the last step to recover black money….to.me it looks like one of many to come…

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    1. Yes I am saying that. Not just poor but anyone.

      A person in my house for 30 years has only saved informally. This bank account enthusiasm is for this year. How will this person explain 4 lac they have saved? Their peers think it’s I’ll gotten wealth.

      This is the last step in terms of currency. Cannot do more

      Liked by 1 person

  3. Harsh,

    A few discrepancies, which I thought of bringing to your notice.

    1. Currency Issued is a liability in the books of account of the Government. Any reduction in amount of Currency is actually profitable to the government. So let them burn the paper.

    2. I have witnessed the cruelty of License Raj. My father used to import raw material required in our factory under this draconian License Raj era. Some few trading families from Calcutta used to corner all Licenses at a pittance and sell at a huge premium. Harsh, so sorry that you trivialized the issue.

    I am a few years older that you, but have grown up in an India more akin to your dad’s childhood than yours. First TV broadcast (DD) in my town was ’85. Life was simple and easy. Corruption was at the higher places only and the middle and lower officers still feared/respected the system.

    Even if this demonetization takes us back to those days of my childhood, we will have achieved much for a nominal cost.

    As for the Battle and War, hold your breath, the jury is still not out with the verdict…

    Cheers,

    Niranjan

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    1. the liability point I concede.. if that is in place it does make sense to go through it. I hope I am wrong in essence. Sincerely hope. Otherwise there are some c9onceptual errors in the post, which is part of my learning.

      Liked by 1 person

      1. Harsh,

        I like the independence of your thinking. Don’t think even once that criticism is disapproval or vice versa.

        We are all young and learning. Keep it up.

        Liked by 1 person

    2. The cruelty of licence Raj in currency s just beginning. Until new notes completely proliferate the market, it will stay. The major source of it is information asymmetry.

      It’s not trivial sir for the truckers who are stuck on the road, in clinics near forests don’t have legal tender to buy money. The news of demonetised notes has reached far corners, the notes haven’t.

      Liked by 1 person

  4. PM has not failed. He will never fail. We the citizens have failed to support him . The officers and people responsible to organise smooth trasitu in of currency haven’t done their job. It is easy to find faults. Please cooperate.

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    1. Any sensible person will keep cash reserves in the house for emergencies.

      Depending on age, income and requirements, the reserves can range from a couple of thousands to a couple of lakhs. Older people with long years of working incomes and likely medical issues will probably keep at least 5-6 lakhs in cash.

      To declare all cash owners “hoarders” and black marketeers is pretty stupid.

      What I worry about is the loss of livelihood and the collapse of businesses if this situation is not resolved quickly.

      Plastic money is probably the worst solution being pushed aggressively. Security, risk to your entire savings, supporting infrastructure, predatory banks and credit card companies (who don’t give a damn about the safety of the individual) – All go to make this a lousy option for the vast majority.

      Liked by 1 person

  5. Assertion made in Hiccup 3 (230% cumulative tax penalty) is false, that declaring black money will eat into white. It’s total misinformation. Tax penalty is @ 200% of the payable tax on the undisclosed income treating it as total income afresh. In worst case, you’ll be left with 10% of the undisclosed income.
    Non-declared income: x – 30%*x (tax) – 60%*x (penalty) = 10%*x

    Now that this ‘objective’ point is clear, your re-analysis now has a softer tone.

    Rest all point of views are great, yet to be seen if it comes out as effective in exercise as believed. But precisely for the same fact that it was such a risk (politically and economically), this move comes out as totally insane.
    It will not go down our throats easily, whatever be the results.

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  6. Blog is Prestine Bunkum!! .The value of unaccounted cash is not destroyed and is well in existence in the economy.
    Nothing is lost.First learn some economics.

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  7. 1) Money not coming as deposit is not lost. Already spoken for
    2) BM from foreign currency cannot be converted thru hawala easily as Hawala operator stand to loose a lot of money. Hawala get hits badly
    3) Also this hits at root of drug trade and counterfeit currency. Best part look at where the stone pelters are gone? The Maoists and other terrorists are also f***ed
    4) Hits at black money in Real estate as the BM is stuck.
    5) Savings is not BM, because limits seem sensible. Cannot believe you will have 2.5 lakhs person in a household…if you have then worst case with you tax returns you can show that there is no unaccounted wealth
    6) Fine is 200%, but cannot be 200% of the amount deposited (foolish). It is 200% of the tax amount (that is the tax law). People saying otherwise are scaremongering.

    That kind of fine is illogical. E.g. Let us say I am a business man worth 10 Cr is white and 10 crore in Black. If you fine me 230% I am bankrupt this is not just logical or follows natural justice

    7) If you made 200 RS a day, there is no way you get your salary in 500s.
    8) Would the Yes Sirs be happy if they thought they may loose the power??

    There will be some issues for small business but the smart ones will turn into opportunity
    1) Local grocer will accept cheques so that more people come to him
    2) Small business will look as using cards
    3) People will do transfers and pay

    What people need to do
    1) Do not withdraw money unless that is the only way e.g. sundries. Do not get cash just to brag “Hey I have 2 new 2000 Rs notes”
    2) Help you maid/driver etc. in exchanging money/ educating them
    3) Use ePayments as far as possible
    4) Use cheques if possible
    5) Do not spread rumors
    6) If you have some change that you have stowed away take it out and use it

    Remember it take a very brave man to take a decision that can make him unpopular in a democracy. Also a man who is not attached to power as people attached to power do not take risks.

    Any fool can announce freebies on governments money.

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    1. much appreciate the effort put in to reply.

      So while I do concede the point of money disappearing, my major concern is the return to the same level of liquidity. It will take a lot of time to reach all over. But seems fair on that count to wait to see results.

      People do in fact have saving over 2.5 lacs not earned through salary and not deposited in banks. See the 2.5 lac limit is based on annual calculation. There are more people than one would believe who saved more than that.

      the tax point is moot I guess, since the unaccounted money would return to government treasury.

      I only hope and hope sincerely that the troubles which the underprivileged will go through, be worth it. If not, we will lose a strong government and be replaced by fools.

      Liked by 1 person

      1. Some of your key arguments fall flat on educated ears. Please do proper research, or may be get an expert to proof read before putting it in circulation.

        check on the impact of burning money. Burning may destroy your wealth but would improve RBI’s. Money is a guarantee of payment not a hard asset
        tax penalty is on the tax saved not the income, so your entire hypothesis is at fault
        you want to tell that the relationships with politicians / bigwigs did not give undue benefits earlier or just because of this measure this has crept up. This is going on for quite some time

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      2. see, this educated arrogance is what I desist from. I was wrong on a few conceptual points, and I’ve admitted them (see below). I was just terribly angry yesterday so I reacted. Rest assured I will continue reacting, if I get emotional.

        Liked by 1 person

  8. While many factual corrections have already been made, I hope you would realize the situation is not as “denzorous” as you have portrayed. As far as your fear of losing the Strong Govt, keep faith (rather fear) in the power of a common man – they do realize the impact and also understand the pain they are/will go through for some time. I personally have spoken to more than 50 people in NCR and UP, roadside and general vendors and there was not a single person who wasn’t affected with this change however none of them were against this.
    So just a note of caution – avoid following certain politicians and few TV channels, you will realize that most of the people are not only accommodating this change but accepting also.

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  9. Are you related to Rahul Gandhi?
    Such illogical post can be written only in ignorance. You seem to have no clue about the concept of money and currency.

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  10. Agree money not coming into the banking system will be reprinted. The impact of that can be seen in how it’s used afterwards.

    But the same could have happened even if the government had given some breathing space to the common people. Now also people are scrutinised for deposits more than 2.5 lacs. Then also black money hoarders would not have come out to deposit in a bank.

    Why such limit on withdrawal? It’s not like these old notes are getting used to print new notes. It’s fair to expect that the RBI could have printed the expected amount of money coming into the system. There is a feeling that the withdrawal limit is to help the public sector banks in recapitalisation and manage NPAs. Its good if money circulates in the banking system but government can’t force people like this not to use their hard earned money the way they want. What was the need to introduce a new ATM incompatible 2000 note? The way a new 500 note is introduced, same could have done for 1000 notes. When they were going to scrap these high denomination notes, they could have increased the circulation of low denomination notes few months prior to the ban.

    I have also been hearing how the bank employees are home delivering the new cash to their high networthy customers and declining the cash to the needy in semi urban and rural areas.

    I feel any policy should be made by keeping in mind how the poorest of the poor are going to be affected. In this case some imaginary benefits are visualised and the poorest of the poor are victimised. Intellectuals on prime time news are shamelessly debating how the poor need so little money and when so many people die of many diseases, what’s the big deal if someone dies standing in the que.

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    1. You are absolutely right..

      Basically this is the middle class urban imagination

      The return to normalcy in liquidity is a long time away

      Finally, people who always saved in cash are unsure of their status. Are they also black noneyed

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  11. Full of CRAP. The #1 is enough, no need to waste my time to go till the end of it.Even a daily wage labor, small trader, SMB, How many months of cash you want to keep at your dispense, 1,2,3, or max 6. Even though its a personal choice on the mode of saving if you HOARD cash in MANY MULTIPLES of your income its done with an evil intention to CONCEAL your ACTUAL INCOME, which is BLACK MONEY.

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    1. thats the distinction I am drawing. I am just saving money in cash. You already assumed that I am hoarding.. this is the kind of judgmental attitude which is going around which is disastrous.

      I know people who have worked for 30 years in my family. They have only saved in cash. You got a problem with that?

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    2. Wow! I am from a village area, I have a bank account, I am educated and I have the energy to go to banks and make my deposits. now my neighbour, Rajan kumar uncle is a farmer, no formal education and kind of old, he does farming and also works on wage for other people, like he helps us get our farming done and we pay him as we are too lazy to do it ourself, he have 1 son and 2 daughters. The son is 19 years old and isn’t earning yet, he have been saving for his daughters marries since more than last 10 years, his total savings in last 10 years in 3.5 lakhs (thats all i know, may be he has it in other places or whatever) he came to me asking aab kya karey? According to you I should have said this is black money chacha ji, go and deposit all in bank at once and pay around 75 thousand tax its easy, you can save that much again in 2 or may be 3 years. Its betterment of country chacha ji. Right?

      Liked by 1 person

      1. According to me that is cash.. plain and simple cash.. it’s the govt which has destroyed the difference. Now he may think, his neighbours who don’t know him may think that he is holding black money. All that he has is legitimate cash

        Thank you for this example..

        Btw what did you tell him to do?

        Liked by 1 person

      2. Sir iuwould have said disburse that 3.5lakhs and may be additionally 1.5lakhs if he has any where else saved into two 2.5L and deposit in bank in his son’s account and his account. And if he has even more than 5L then deposit that in daughters account..

        This is how as civil public I would have helped instead of creating fear mongering among public.

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      3. I think, if you deposit 10 lakh in your account, the details of the transaction will be with the tax audit Authorities. You will get a query/scrutiny notice from Income Tax Dept. In that scrutiny, if you can manage to prove that you were below a taxable limit in each of the years you claim the 10 lakh to be spread in, there should not be any problem. There will be a lot of genuine cases in this bracket.

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  12. Mohammad Bin Tuglaq also took some decisions nearly 700 years ago in the name of welfare of his people. Even a bolder decision has been taken in this country in 21st century. Some people will realize only as the time passes as the present inconvenience is nothing in face of its long term impact on the poor and middle classes of this country.

    Liked by 1 person

  13. If you don’t know the subject fully ,don’t comment on,that to on our prime minister….first study the subject……..If you want share ur mobile number on whats up will give tons of videos and data on this subject

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    1. Quite frankly I will continue writing as I see fit. If you read it through, you would have understood that while the decision will help, it also leaves behind a lot of people. Ear to the ground my friend!

      Our urban middle class imagination of life is what is causing deaths. Deaths are not good.

      Also he is equally my pm. He has lost my support on this for now.

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  14. I guess some crucial points have got missed in the article and also in the responses.
    1) The political class and the terrorists are the ones who need to hoard large sums for a singular event. They do not have that scope now.
    2) The multiple exams of hard earnings can still be saved; accounts can be opened in the name of 19 year son and marriageable daughter to deposited with no tax liability upto 2.5 lacs /person. Is that tough? No. Why avoid putting into bank and earn interest? I now really don’t know.
    3) The right to keep savings in cash-while this sounds tricky, most middle class save rather in gold. And also, showing lower income and saving in cash (typical business family mentality) is reason why we have only 3% tax-paying population. So, only a segment pays tax and others simply save? That isn’t gullible to a tax-paying citizen like me.
    4) If ATMs we pre-calibrated, 1000 and 500 currencies issued for replacement, who could track it? Say x has 1 lac in black; he deposits 10k first, gets new currency and deposits 10k again showing business income. With same currency denomination, you can’t track. With 2000, that is achieved.
    5) An twisted logic but important; we won’t suffer as we are honest citizens; why should the soldier at the border take a bullet? Does he have a personal enmity with Pakistan?
    6) Business class can easily pay advance tax( Financial year closing is 4 months ahead). It won’t really affect them.
    7) Suddenly poor people who earn daily bread seem to be most affected as they earn 1000’s per day? Really?! I have been roaming the city, driving auto and cabs, and also interacting with my maid (people from the lowest strata) and everyone including me could easily withdraw cash from the banks. The banking system hasn’t failed us unless we have failed to walk up to the bank.
    8) License Raj: was it gone for good before this or is this the only form of it currently; let’s be honest. But we don’t need so much money for daily necessities actually. Lesser in rural areas where they are neither high transportation costs nor luxury malls to spend.
    9) Mr.PM is coming up with the benami property scheme; he has promised to cleanse and BJP party workers are themselves cribbing about losses. Atleast political funding will get cleansed; terrorism won’t be so easy if we move into a banking economy. And doing it slow will actually kill more due to license Raj and terrorism and diseases. Digital economy empowers, and also emboldens. Like we middle class flash our credit and debit cards.
    10) It’s easy to criticize months of planning, grit and determination to go ahead with such a step. It is easy rather to cower down thinking people will vote against. And that has been happening with us all this while; atleast we can support something that brings long term solutions. Netaji said, “Give me blood, I will give you freedom”. Mr.Modi is only asking us to actually save money by spending less. God bless him.

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    1. Don’t confuse the idea vs the impact.

      When you give medicine there will be side effects. Any decent doctor can prescribe medicine but the good ones also provide an anti dote and provision of information about the possible side effects. It wasn’t done here.

      Lives needn’t be lost on this.

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  15. I am naive, not certainly an economist and belong to a class who lives paycheque to paycheque (tax deduced of course), that gets deposited in the bank and most of which is spent in plastic. In other words I might be one of the urban middle class lot, which is least affected from this demonetization.

    I read the blog and Harsh, I must say you earned a follower not only for the thoughts, but also for the way you have accommodated views and explanations. I also acknowledge the explanation of (some of) the pro-demonetization lot.

    This is exactly what we need in this country.

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  16. The idea was good but the implementation suck. This idea would have succeeded in countries like US, UK or any other countries which mostly use cards for transactions. In India the scenario is totally different, 70% of the total population stays in the rural area where they use cash for almost all items (even most of people in the small cities). This decision has made the whole business come to a stop. With a population such huge as our (more than 1.25 bn) its impossible for such an action to have full impact within this 50 days. Moreover the govt has the names and accounts of most of the black money holders. Instead of targeting them, they have just shot an arrow into the air… jisko vi lag jaye wah wahhi unka hi hoga. The % of black money holders is less (compared to the whole population whose inconvenience doesn’t matter), so it would have been easy for them to give some raids and get back the money also. If the govt don’t catch the corrupted ones, there is no use of taking out different schemes cause they will always take a different route out…..
    Even the govt have realized that their is fault in their decision and now they have increased the usage of 500 and 1000 rupee note to 24th…. My question is to the supporters of Modi ji that what guarantee does it have that the black cannot be converted to white within these days?
    Be practical man…. India has a long way to go before it can truly achieve the ache din. Much support for you Harsh…

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  17. नोटबंदी में अब तक कोई घोटाला नहीं हुआ है।

    घोटाला जनवरी-फ़रवरी महीने में होगा जब RBI उतने नोट छापेगी, जितने कि बैंकों में वापस नहीं लौट पाए हैं।

    सरकार इस रक़म को अपनी आमदनी के तौर पर दिखाएगी। यह रक़म पाँच लाख करोड़ तक हो सकती है।

    उन नए छापे गए नोटों की लूट भारतीय आर्थिक इतिहास की सबसे बड़ी लूट होगी।

    इसका बड़ा हिस्सा बड़ी कंपनियों के पास जाएगा।

    उनका क़र्ज़ माफ होगा। इस वजह से कंगाल हो चुके सरकारी बैंकों में नए सिरे से नक़दी डाली जाएगी।

    मिडिल क्लास को ख़ुश रखने के लिए इनकम टैक्स की छूट की सीमा बढाई जाएगी और टैक्स दर में थोड़ी कटौती होना भी मुमकिन है।

    उस लूट की तलछट पर चंद नोट ग़रीबों के खाते में भी आ सकते हैं।

    सबका साथ-सबका विकास

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