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This is one of the largest transfer of money from individuals & small businesses to corporate sector. Since notes were denotified, people had no choice but to m
by nocoder 9y ago
This is one of the largest transfer of money from individuals & small businesses to corporate sector. Since notes were denotified, people had no choice but to move to businesses which could support digital payments. This led to huge loss of business for smaller players who were dealing in cash and a drop in economic activity. And the small businesses are the ones which employ highest number of people, so the subsequent job loss. Additional domino effects is loss of man hours spent in exchanging the notes and the general anxiety it caused amongst people. Moreover data shows [1], the whole exercise only caused a temporary change in behaviour & cash in back in vogue, so essentially a pointless & damaging exercise.
[1] -
http://www.livemint.com/Industry/S0AwBRAYuGbJw0SoXOaUaO/One-year-after-demonetisation-cash-is-still-king.html http://www.livemint.com/Industry/S0AwBRAYuGbJw0SoXOaUaO/One-...
- mabbo 9y agoThose small businesses were the ones taking cash only, paying employees in cash, and generally continuing the trend of no one paying any taxes what-so-ever. Of course they could employ more people- they were unfairly competing with the companies that were following the law. I have a hard time sympathizing.
- intended 9y agoUnfairly competing? Thats the weirdest example which doesnt describe India.
- rtx 9y agoIt does, not paying taxes is unfair competition.
- intended 9y agoagainst who? Most of those firms earn less than the barrier for payment being required. So which taxes and who?
- mabbo 9y agoHow would anyone know if they're below the taxable level? Paying taxes shouldn't work on an honour system. Not reporting income is tax evasion, which is what the Indian government wants to stop.