Decoding Demonetization: The Balanced View
In the last blog I talked about how demonetization looks like a TRUE socialist movement or policy created in independent India. The last 3 weeks has indeed been a rollercoaster ride for all of us. As politicians, activists, common people discussed, debated, criticized and accepted the move, memes, conspiracy theories and obnoxious WhatsApp messages and Facebook statuses spread like wildfire.
Even today the nation stands polarized and the good, bad and ugly about the move has rented our peace of mind.
After much conversation, coffee and analysis, my point of view now has some fineprints*. No, I am not releasing videos revolting against and abusing nor am I stupidly relating it to being anti-islamic (yes, high-end functioning brains have called it so), I am simply making amendments to it. The move is first in the line of some major changes we will see soon but for it to be truly impactful it needs to be followed up with some major reforms.
Before I jump to plausible reforms, let’s first look at demonetization at the base level followed by the effect it will bring around in various aspects.
In my post about ‘All that is wrong with Arvind Kejriwal’ (https://www.kapilgupta.in/blog/all-that-is-wrong-with-arvind-kejriwal/), I had talked about what he is missing. That was done with a conscious assumption that he has the right intentions. Today, I want to not constraint myself with that assumption.
When AAP came to power in Dec 2013, there was anxiousness all around. No one (including his best supporters and best detractors). Nobody knew how they will perform. Nobody knew what all they will be able to do.
Interest Rate – The Most Anti-Socialist Phenomenon
Rich getting richer while poor suffers – this is considered a key evil in the society. This is what keeps us from providing equality. But what’s the cause?
The constitution declares India to be a sovereign, socialist, secular, democratic republic. But we have done little to achieve a better socialist society. Socialism here means equal opportunity, equal rights and equal ability to be able to live well, NOT equal pay. It is equal pay based on work done irrespective of all other factors.
If looked closely, socialism would essentially mean that rich shouldn’t be able to get richer just by the virtue of being rich and because we as a society provide equality. However, India, as an economy, suffers from an extremely high interest rate problem. A high interest rate means rich can live out of just being able to lend money and earn more. Money attracts money. It also makes it more difficult for businesses to flourish and makes entrepreneurship more difficult.Continue Reading