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.