All Pain for the Majority
FRONTLINE|December 9, 2016

The impact of the measures on the farming community, the poor and the lower middle classes was hugely underestimated by the political establishment, sundry pundits, the media and a large section of the untutored or sycophantic elite.

C. P. Chandrasekhar
All Pain for the Majority

AT THE TIME OF WRITING, CHAOS CONTINUED to prevail at bank branches and ATMs across India, reflecting the larger truth that the government had for no sensible reason frozen a major part of India’s payments and settlements system. The government did this by declaring, for reasons wrong and indefensible, that currency notes of Rs.500 and Rs.1,000 denomination, which accounted for more than 85 per cent of the value of notes in circulation (and around 25 per cent in terms of sheer numbers), would not be legal tender within four hours of a dramatic speech by Prime Minister Narendra Modi on the evening of November 8.

That speech was filled with a mix of threat and promise: once again the Prime Minster declared that “black money” would be sucked out of the system and trashed; that those earning black incomes, holding black wealth and involved in counterfeiting currency would be pursued and incarcerated for ruining the economy and oppressing India’s poor; and that the flow of counterfeit notes from across the border that fed domestic terrorism would be stopped. In a turn of phrase that began life under Modi as the label for a secret military operation but has become a way to describe his aggressive form of governance, politicians and the media began describing the policy as a “surgical strike” on the black economy.

This story is from the December 9, 2016 edition of FRONTLINE.

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This story is from the December 9, 2016 edition of FRONTLINE.

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