Bringing back black money will crash the economy

One of our commenters, Wiseman, wrote us this strong, smart comment to the article titled - Without black money, India can be $9 tn economy - which we have now published as a separate post. As is our policy, we have edited out a few sentences that were directed at the author.

By Wiseman

If there weren’t any avenues for black money there would be no black money and hence no extra 5% growth. And if there was no corruption India wouldn’t be India would it? It’s impossible to put a figure on these things.

[caption id=“attachment_77143” align=“alignleft” width=“380” caption=“AP “]  [/caption]I have seen several articles in the press lately stating how if we suddenly brought back all those trillions of dollars we would solve all of our problems. No doubt they are written with the noble intention of creating awareness but only serve to create misgivings.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

Even if for a moment we imagine that tomorrow we brought back the trillions of dollar denominated assets into the country, can someone imagine what it would do to the country’s economy? Rupee dollar ratio would crash immediately ending India’s competitiveness in the world market and that is not taking into account the mind boggling inflation it would create. A country’s wealth can only be increased sustainably in the long term by improving people’s productivity and developing the natural resources. Anything else is a fool’s dream.