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My initial gut reaction is/was, a costly political stunt to fullfill an election promise. But I will wait when we have figures about cost to economy vs addition

My initial gut reaction is/was, a costly political stunt to fullfill an election promise. But I will wait when we have figures about cost to economy vs additional tax revenue. It also should be taken into account that Rupee now is even more unlikely to become a global currency. Instead of money going directly to corrupt bureaucrats now it will directly going to politicians to be spent on unsustainable welfare (subsidies/reservations/PSUs) which would get them even more votes clamouring for more welfare. Ah dont you fking cry when they up the sales tax 200% on your favourite gadgets in the name of the poors. All thanks to this cashless/surveillance there will be no escape.

0xmohit 10y ago
I suppose that if election promises were to be fulfilled then the government might have chosen to act upon those stashing billions of dollars in tax havens abroad.
- wav-part 10y ago
  I find even the concept of income tax injustice at massive scale. But I have a feeling that this was a least costly way to shut up a socialist population. Assuming Modi is not just another socialist and this is the last of it we are seeing.
gnipgnip 10y ago
+1 Taxation by a state which has very little legitimacy is more akin to thievery. This shows all the signs of a new Indira Gandhi-esque regime in the making (with about the same amount of fanfare). - The currency replacement is likely going to take about ~$5B (the "Black money" is valued at $20B). - Nothing stops Pak from counterfeiting these new notes. - This move creates a reverse bank run to build up reserves, which in light of the rate (10-15% ?) of bad loans in Indian Banks, is interesting to say the least. - There also appears to be a very big push under this regime to push for cashless-id transactions. With the UIDAI in place, pessimists would believe there to be the coming of an even more efficient 1984-esque system for producing more cheap labor for US & pals.
mindentropy 10y ago
There will definitely be inflation and cost of goods will steeply rise in the short term. I am not sure whether we can even survive long term. The taxes and the present losses will simply be passed on to the consumer. This is because there were legitimate services being provided with such black money.

0xmohit 10y ago

I suppose that if election promises were to be fulfilled then the government might have chosen to act upon those stashing billions of dollars in tax havens abroad.

wav-part 10y ago
I find even the concept of income tax injustice at massive scale. But I have a feeling that this was a least costly way to shut up a socialist population. Assuming Modi is not just another socialist and this is the last of it we are seeing.

gnipgnip 10y ago

+1 Taxation by a state which has very little legitimacy is more akin to thievery. This shows all the signs of a new Indira Gandhi-esque regime in the making (with about the same amount of fanfare). - The currency replacement is likely going to take about ~$5B (the "Black money" is valued at $20B). - Nothing stops Pak from counterfeiting these new notes. - This move creates a reverse bank run to build up reserves, which in light of the rate (10-15% ?) of bad loans in Indian Banks, is interesting to say the least. - There also appears to be a very big push under this regime to push for cashless-id transactions. With the UIDAI in place, pessimists would believe there to be the coming of an even more efficient 1984-esque system for producing more cheap labor for US & pals.

mindentropy 10y ago

There will definitely be inflation and cost of goods will steeply rise in the short term. I am not sure whether we can even survive long term. The taxes and the present losses will simply be passed on to the consumer. This is because there were legitimate services being provided with such black money.