There were many economic blunders in the past, but demonetization unarguably remains in that top list of blunders. The Prime Minister Narendra Modi announced demonetization on November 8, 2016, like an event on the national television. The main objectives of Modi government were to fight with black money, terrorism financiers and punish hoarders of black money. In this article, we will show you some important reasons why Modi government shouldn’t have taken the decision of demonetization.
Government’s Dilemma in its objective
First of all, Modi government was never clear about the fact why they wanted demonetization. The government said in the starting that demonetization will help in curbing black money, illegal money and also punish hoarders of black money, but when things didn’t go the way government was expecting, they changed their objective and said it promotes the cashless economy. These double sides of government show clearly in how many dilemmas they were while taking the decision of banning notes. Without clear vision in its head, the Modi government took the decision of note ban and it not just impacted the Indian economy but also shattered many small businesses.
Government’s fantasized hopes
The biggest setback was that the Modi government fantasized many false hopes from demonetization like government’s miscalculated amount of money out of the 15.44 lakh crore that would be returned. Many daydreams hope like the end of black money and scarce for black money holders literally impacted the government badly. Modi government hoped many transformations after the implementation of the demonetization but nothing like that really happened.
Unplanned execution of Demonetization
So many changes while executing demonetization not only pissed off the general public but also impacted the Indian economy. Many daily wagers had to stand in a line outside their respective banks to get new notes by exchanging with the banned ones. The disaster execution of note ban not only shocked the trust of common people on the government but also generated many time-consuming hurdles for them. It was a big issue for the job-oriented people and middle class to stand in a long line outside the bank to exchange all their ex 500-1000 notes. Bad implementation of demonetization was also a big reason why the government shouldn’t have taken the decision of note ban.