Demonetization for Richer or for Poorer

Remember the times, when Baba Ramdev used to come on debates and fasten on his idea of economics and often suggests that ‘We should encourage small currency rather than big tenders’, The idea hark back live on the evening of 8th November, While taking a historical but stunning stand, The Union Government has decided to do away with Rs. 500 and Rs. 1000 currency notes from midnight on 8th November. These notes will cease to be legal tender from the midnight of November 8, 2016, announced Prime Minister Narendra Modi in his television address to the nation on the same day. “The value of these notes becomes merely a paper,” he said in Hindi, adding that the move is to curb the circulation of counterfeit notes and fight black money.

- Shwetank Mishra

In an unusual televised address, as the NDA government completes two-and-a-half years rule, Mr.Modi said Rs. 500 and Rs. 1000 denominations are most counterfeited “from across the border.”

“We have brought back Rs. 1, 25,000 crores of black money from corrupt people through various means,” the Prime Minister said. After the sudden late evening announcement on devaluing the important currency, many people rushed for ATM, some for shopping and some seeking to change for their currency.

The contrast could not be starker. Despite the enormous hardship of queuing up for hours to get some money from ATMs and banks, many people are supporting the government’s move to demonetize high-value currency. If it serves the greater good of cleaning up the system, people, at least many of them, seem willing to stay the difficult, for some perilous, course. In politics, perception matters a great deal. So we have the prime minister wiping away his tears and speaking of his humble beginnings and his determination to wipe out black money. And we have the Opposition breathing fire and brimstone saying that the means don’t justify the ends, even though they are against black money.

Cut to the mega-lavish wedding of mining baron G Janardhan Reddy’s daughter. It gave an altogether new meaning to extravagance and opulence. Spread over five days, the mining baron pulled out all the stops and then some to celebrate the wedding, some put the cost at 500 crores. The BJP had got off the mark when details of the wedding became public saying that not one of their lot would attend. But such was the draw of the event that not just the BJP, but the Congress also could not keep away. The guests who turned up included the state BJP chief and former chief minister BS Yeddyurappa, Karnataka governor Vajubhai Vala, Congress leader and home minister G Parameshwara, and ministers UT Khader and HK Patil.