So, last week Demonetization happened and like majority of us, I rushed to the nearest dictionary and searched what’s this all about. Then we rushed to the nearest banks to get our now-monopoly paper currency in to actual currency and stayed there waiting for our turn. So, what exactly is this fuss all about?
Turns out that it isn’t exactly the first time our Indian government has pulled something like this out of their bag. The first such known tricks happened back in 1939 and guess what? we had 10,00o Rs notes and those along with 5000 and 3000 were called back. And, again these 10,000 Rs notes were put in to the market (Yes! yet again and I regret to having not seen it even once in my lifetime) and not so surprisingly called back to curb the black money floating around. By now, you would have guessed it has to do something with black money and their flow and effects on the economy. Precisely, the government is hoping for a third-time-lucky as both of the previous gimmicks haven’t contributed towards curbing black money as is known to all of us.We all have an uncle who sits at home and is “Somehow” filthy rich.
This brings around a variety of questions ranging from how will it curb black money which is so prevalent along with fake currencies, to how will it affect us Aam Admi who are alien to the concept of hoarding bags and containers of money in their warehouses or offshore accounts. Let me see if I can get a hold of these questions. Firstly, how does it curb black money or render it worthless. Theoretically, since all the existing 500 and 1000 Rs are worthless from November 9, and the only portal for exchanging the legit currencies are through the banks and since banks would need proper documents to accept cash, this should be a sure shot solution. Ideally, then we would have a Utopian environment with only legibly earned money. But like for every good there is a bad, comes none other than our own human self and our craving for the illegitimate. Underpaid(Like most of us middle class) bank officers can be easily lured in to turning this black to white motor for those who matters. Or, even worse, they could be threatened to give in.
The most interesting part of this scheme, is the introduction of a bigger note which will lead to shopwala uncle asking ” Aur koi bada note nahi tha kya? “. The 2000 note might look pretty but according to varying reports it isn’t exactly pretty in pink. The actual cost of maintaining the newer notes would require at least 15-20 k crore and the benefits of demonetization should at least offset this. This a much bigger stake on an already nagging economy (but not bigger than the scams our cunning Netas run!). If this, black money scheme does backfire, then we would have a government who just wanted to have prettier notes.
Then, last but not least, would be how will it affect, normal people.Obviously the coming month would be a Pandora’s box with very less actual cash in circulation. But then, what after that ? Will it increase the cost of living? Will it dip us further in to the debt? Will stock market hold this? This will surely put a lot on plate for the cashless online transaction company with many of them starting targeted advertisements. Analysts claim an impending crash of the real estate and stock market.
Given, all these factors, I am pretty sure that the impending news of demonetization would have reached the elites ears long back and obviously they would have floated it in to the market through new companies, products and other consumables. This isn’t exactly rocket science. No sane government can risk their major stakeholders going in to bankruptcy. So, eventually, this begs the ultimate question, DOES IT REALLY MATTER TO THE RICH? Middle class is stuck in the between, poor gets poorer and rich would eventually amass wealth beyond layman’s imagination.
Here’s to hoping the latest policy isn’t just a gimmick and maybe a winning touch for a better India.