Today, India is a fastest growing economy with high rates of corruption in Globe is alike a most successful person with paralysis. Black money is one of the biggest causes of corruption as it helps corruption to grow faster in every field. To have a disease free developed Country, we have to get rid of Black money first.
Black money is an income illegally obtained or not declared for tax purposes. Money is a medium and not commodity to stock it in pillow, trunks, walls, cupboard and underground.
Factors for generation of black money include (i) high rates of taxation under direct taxes which encourages tax evasion, (ii) donations to political parties for elections (iii) smuggling and other illegal anti-social activities (iv) pugree and hawale systems, (v) controls, permits and licenses (vi) corrupt business practices, (vii) price control without adequate machinery for effective distribution.
The miser believes that one become rich by holding money, while the capitalist rightly believes that one become rich by actually using the money, throwing it into circulation.
Our Country runs in a system – Economy system, Legal System, Religion system, etc which are interdependent on each other, at times. We have constitution to follow which gives rights to Government to print money as per need (inflation/requirement) and RBI have right to decide number of notes to be printed, this is how the systems go hand in hand.
Economic is not a science of money it is a science of resources. If resources get utilized at par economy will grow. Today, India has lot of resources but no customers, as they don’t have money since money is blocked in few hands.
For instance: (1) India have many shops, hotels.etc still have beggars as they don’t have money to buy. (2) Farmers cultivate crops but no buyers due to deficiency of money; in turn farmers will do suicide. (3) Indian Youth have talent but don’t get pay at par, hence our talent moves out of India.
Government print money, Indian citizens treat money/currency as commodity and stock it, instead of using it as medium and circulating it through banking transactions which will help everybody to get access to that blocked money. Government have only one clean source of income that is tax which people don’t pay, hence government have to take loans from outside to give facilities to our citizens. Government keep printing the money and Indian citizens keep stocking them.
Possessing currency is a very bad sign for growth of any Country and increases poverty and inequality. Currency is a medium and should be circulated among its citizens. All monetary transactions should happen through banking system only. This gives a transparency, legality to transactions and reduces corruption. In India, currency money is more than bank money.
To cure this disease of black money, banning the high denomination currencies is a core solution suggested by economists/experts which has been used by many Countries successfully.
In 1969, US president Richard Nixon banned high denomination notes. US was than distress by mafia, women trafficking, smuggling, corruption, dons and white color criminals who took full control of American economy when Mr. President took this bold decision, wherein people suffered a lot but it was a huge setback for corrupts and it reduced the corruption. This started the development of banking system very fast in America.
Indian Prime Minister has now taken this bold step with consultation with economist by banning Rs. 500/- and Rs. 1000/- notes to help our Country grow. The Common man will face problem for few months, but they will get used to banking system. And to get a beautiful, stress free, corrupt free Country; citizen will have to suffer the pain now.
Economists says, in India, an average transaction of Rs 2.7 lakh crore is seen daily which accounts to Rs 800 lakh crore in a year. But only 20 per cent transaction out of this happens via banks, rest all takes place via cash which can’t be traced. If all transactions are processed through banks, it would also be easier to freeze accounts suspected of funding terrorists as was done in the US post 9/11 attack after which no terror attack hit America ever.
“In the United States, 90 percent of transactions are through the bank and so there is all white money.
Denomination is as per the Economic Rule implemented by Government whom we have choose so we need to be calm and give opportunity to our Government to take decision for our betterment. The citizens of a Country are bind to obey its Constitution/laws/acts/ruling with full support.
From many such binding laws one such binding law I would like to bring to notice for instance is a law which bind each and every citizen above the age of 18 to fight at the borders to protect the Country in case of emergency and the Citizens have to leave everything and go fight for nation. Thankfully our nation is in good condition as we have very strong and dedicated army force that have given up their family/happiness and are standing day and night for us fighting at the border without any bribe/commission/extra wage/high package/facilities/amenities/etc to protect us such that we enjoy our life peacefully.
Altogether, people are only expected to keep calm, obey the instructions properly. People have to understand that their savings money for future/education/house/children won’t help them if the Country don’t develop and if corruption won’t reduce, people will always end up getting cheated and paying more and their dreams will never come true, even after doing so much hard work a man can never grow individually, we as a Country will have to grow to get access to all the facilities. After, ages India has got a very good leader which even other Countries have agreed. Today, for very short term we have to suffer a bit for a bright tomorrow.