Originally posted by: charminggenie
@K- You know why it's very difficult for me to acknowledge that it's okay, policies fail or intent was "good", because I and maybe most of us come from a place of privilege ,we could work with no cash for a week or more, we live in cities and probably have access to many basic rights because of our privilege on the basis of social, economic parameters .
But the real blow was on the lower economic strata who are not privileged , most of them make a living solely through cash , unorganized sector and daily wage . I overlooked them and hoped the Govt. had thought it through for them but you know what happened, as now RBI numbers show unorganized sector, lower income groups have shown the greater hit .Some have lost lives, business and dignity. Like this story , do give it a read and understand why I feel angry - http://www.hindustantimes.com/gurgaon/a-retired-soldier-in-tears-meet-the-man-who-has-become-the-face-of-cash-crunch-woes/story-lz6t3xneMMJlF1rlnzhRlK.html
Thats one story, we have so many such cases where poor have lost their hard-earned money, business overnight. It's then when you realize how privilege one has to be to ignore or take them for granted while framing , analyzing any policy especially in India . I don't need to tell you that those 100 odd deaths belong to which economic group or which age group.
lol what do we have here? Ghar ghar ki kahani episodes from hindustantimes?😆
you get the stories you want. HT is generally anti-modi. TOI is pro-whoever is in power... ET talks both sides of the mouth. In any case, taking one person's story out of 1.3 billion and trying to make an issue out of that is a bit too slick. We should try to get back to debating on merits, not personal chutkalas.😆
now here are some eco arguments for you.
1. India's growth rate was trending lower way before demonet. We were somewhere around 4.5% in 2013 before the stat dept magically revised it up later on. You might remember that too many scams had left decision makers shell-shocked and paralyzed. Economy wasnt moving.
2. Rajan showed up around 2013. Tight policy guy. In his anti-inflation drive, he contributed to growth slow down.
3. Rajan also went hard after non-performing bank assets. The hard nose policy together with high real interests was a big mistake. It was the one-two punch the economy did not need. Incidentally the NP loan problem is a result of the scam years of Congress 2009-13.
now think of this- what have central bankers all over the world done in response to slow down or other problems? They have generally pumped money into the system. Draghi, Greenspan, Bernanke, you name them, they have tried to inflate the economy out of debt and other problems. Not so Rajan. He had a single-minded focus on trying to bring down inflation and clean up the public sector banks.
here's again where he was wrong- India's high inflation rate was generally supply-side bottlenecks. Food and other essential items are not very responsive to interest rates. His tight policy was responsible for construction/ infrastructure/ investment growth to also stall out. It is precisely that kind of growth you need to get rid of supply-side bottlenecks. Unfortunately, Urjit Patel seems to have adopted rajan's policies. These guys need to be kicked out and we need to open the spending/ monetary spigot. That's what we need. All the talk about demonet causing this or that is hog wash!
Bhabhi Ji Ghar Pe Hain?
