Demonetization: The Give and Take of It

Forced into long queues, a woeful-hopeful India is supporting the demonetization kicked into the works like the proverbial spanner by the government purportedly to make the black economy bleed and to bring it to a grinding halt by practically vaporizing hard cash — supposedly the lifeblood of black economy — through demonetization. We are given to understand that the move would hurt the black economy so severely as to put it on the deathbed. The common man believes that this is the death knell for the ‘dirty money’, which has been the cause of all financial ills, including massive income disparities, that India has been reeling under since independence. The poor and the lower middle class have always blamed the rich for their miseries, and the demonetization move plays the psyche quite deftly. Fueled and buoyed by his own elaborate fancies, the common man paints the mental picture of an alternative reality in which he and the richest man he knows are eating together in the same eatery. It’s not the five star in which the poor man imagines the richest man eats, but the cheap dhaba where the poor man takes his meals. The poor man is still happy to see the rich man suffer like he does everyday.  

banksSome other poor man may dream differently, and in the alternative version of the imagined alternative reality of the post-demonetization golden era as imagined by the poor, the roads are paved with gold and there is no poverty because there are no rich and poor any longer; only happy people with more than enough for everything and everybody because all black money is flowing on the roads like rainwater. If you think it’s overly fantastic a vision for even the simplest of the hoi polloi to entertain, you might have ignored that these are some of the same people who not only believed that a different government could not only bring back the offshore black money but could and would also — as promised — have it deposited in the bank accounts of the common people and everyone would be richer by a few lac overnight simply for being the citizen of the country with a bank account. To them our Prime Minister is nothing short of a miracle worker, which, in some rather unflattering ways, he indeed is.

crying-manThe poor and a large number of have-nots are willingly suffering for what they believe to be a noble cause, and while the merits of the move are debatable, it remains the first major assault on black money so far. It’s only the swing and sweep of it that might turn out to be unwise. And that’s what the government must be prepared for. People have suffered a lot for no fault of theirs in the hope that the nation would gain, and some kind of socio-economic justice will be delivered. The government must have something concrete in terms of results to show for all the suffering it has put the people through. Coming up with a list — no matter how long or heavy from the heavyweights on it — of the people prosecuted simply would not do unless the government manages to recover substantial amounts in taxes and fines, and the sum should not be lower than 20,000 crore because that is the minimum the nation will have most likely lost directly or indirectly in implementing demonetization by the end of the first 20 days.

The government is free to experiment all it wants, but at the end of the day we’ll hold it to account.

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