CAUSE & EFFECT: Removal of black money turning things red – Govt. chasing its tail.
The markets don’t know yet how to respond to this change. The industry pundits keeping their cards still closed. But one thing for sure won’t be same as it was before and that is people’s readiness to accept uncertainties and became more demanding for their rights now with government.
- GOT NOTHING TO LOSE: Before, people with stockpile of black money were always busy pleasing officials to cover their wrong doing but now they’ll be more demanding for their rights from government and eager to see that government too flushing corrupt officials. Instead of government jobs and powerful public positions there’ll be new wave of entrepreneurship that’ll give more control and rewards to hard working people.
- LESS TOLERANCE SOCIETY: After people its governments turn to deliver and become more transparent. In the past people with special money were indifferent towards government’s policies to provide them with better health care, world class education system, unshakable infrastructure of roads and railways as they take care of it by themselves. But now people will have less tolerance and exercise their voting rights wisely and demand accountability of money they collected from them to fund different projects.
- BURSTING REAL ESTATE BALLOON: In absence of disposable black money the industry won’t see any increase in supply of new projects at least for some time and real-estate developers will desperately look for genuine money to meet its immediate obligation to complete existing projects which were till now fulfilled by special money. Now, they don’t mind relaxing prices for genuine buyers. Coming one year is totally going to be buyer’s market. The best time to buy your dream home is in now.
- NO INCENTIVE TO SAVE: Saving interest rates is bound to go up – whether in bank or personally, people would not justify saving their hard earned due to unpredictable future. It’ll give rise to unwarranted consumerism same as what happened in US after Second World War as most of them feared that there is no life guarantee so enjoy today as much as you can. Also some would prefer to invest their disposable income; thereby the savings interest rate will go up as banks will find hard to convince people to save money with no real-returns.
- DISINCLINED TO WORK MORE: They’ve worked more in the past and thrown away their “work-life balance” for a toss only because majority of rewards will be consumed by them but now the more you work the more you making government richer at the expense of your health and relationship. So people won’t work more just to make others richer. In fact this’ll open newer opportunity for those who are under-used to grab the extra work and start to lead a descent life.