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  • Category: India

    Is it right that demonetization resulted in people losing their jobs?

    Did demonetization really create unemployment in large numbers as claimed by some opposition leaders? Debate on how and why there were repercussions, if any, on the job scenario in India after demonetization.

    Quite often, I hear the opposition leaders claim that 50 million Indians have lost their jobs due to demonetization. Is it right? How could people lose their job due to demonetization?

    Do you really feel that demonetization could have affected the people and made them jobless? If yes, how? Explain it in detail.
  • #663046
    Demonetization was a very bold and strong action by the Govt. It exposed many black money channels in the country and even those who had white money in cash form had to deposit it in bank as the old currency was going to be of no use.

    Interestingly, Govt could not give the new currency to all in such a sort time and many people could not convert their black money to the new currency. There was a danger of future checking also by the authorities so people were afraid of depositing the unaccounted money in bank.

    Still, some clever people were successful in exchanging some amount through their servants, relatives etc but it was not much.

    Due to these extreme actions of Govt, suddenly a large chunk of black money was out of the transaction and many people who were engaged in jobs where things were done in cash and black mode became jobless. There was no black economy after the demonetization so all the associated jobs vanished overnight.

    This was a temporary setback because all those things finally came back in the white money mode and joined the invoice and tax channel and many people got their jobs back albeit in a different form and lower salary package.

    The bolt of demonetization was so strong that many black marketeers started to work in the normal white channel as it became riskier to work in black mode with the new currency.

    It is also to be noted that no one lost a job in private organisation or Govt departments where business was done through invoices and on tax payment basis. What I want to say that no one lost his job in white money transaction environment.

    For example, I know a currency agent who changes currency under an invoice and enters the passport number there and pays the tax to Govt. His job is still running. At the same time the people who were changing the currencies without any paper work and invoice in the market lanes and corners, lost their jobs.

    So, people lost their illegal and shady jobs but now most of them are absorbed back by the industry now in the white mode. Only thing is now they are earning less than earlier.

    The total number of notes issued by the Govt since 1947 is a huge number and there is no method to cross check it with what was received back in the bank during monetization and the data released in this regard will only add to the existing confusion.

    One thing which is very clear that this action was very difficult and tough and only a bold person like Mr Modi is capable of taking such extreme actions. There is always a danger of losing even the PM post after such extreme actions as opposition will always make it a big issue as the common public will not understand the intricacies.

    I am sure no other person in his place could have taken this bold but risky decision.

    Knowledge is power.

  • #663056
    We need to look at the positive aspects of demonetisation instead of some negativity. It is undoubtedly a bold decision by the Government. Due to demonetisation the fake currency and black money disappeared from the circulation.

    It is true that demonetisation has affected corrupt with black money and persons with illegal transactions. Demonetisation has not affected any persons with legal source of income and paying income tax as per the income tax Act.

    The politicians, corrupt business houses, including some media houses are unnecessarily creating anti propaganda against demonetisation.

    "If you don't understand my silence, you will not understand my words"

  • #663060
    No. Jobs did not vanish. But their salaries are paid in white money but not with black money. Some private organisations were giving some part of the salary to some employees in black money form. But after demonetisation, these amounts also are being paid in white. So tax collection improved. In fact, some poor people got some money as some rich people took their permission by giving some money and deposited some money in their accounts.
    When some good decisions are taken and implemented some sufferings can't be avoided. We may have to accept them for the well being of the Nation. Everyone wants everything in order but they don't want suffer. How can it be possible? To get the freedom to India how many suffered? To safeguard the security of the country how many people are suffering at the border? When compared to those problems how much is the problem faced by the people because of demonetisation?

    always confident

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