Subsidizing the digital rich

December 11, 2016

Will all those who crib about subsidies for the poor, now rally against the various digital subsidies for the rich?

It is requiring careful observation to distinguish between ads by the government and the corporates. Both appeal to our patriotism and the need to go cashless. And use the same Model.

I am beginning to believe that some credit card product manager is running this country. This is exactly how we used to sell credit cards – service charge waiver, additional insurance, etc. What next – Reward points? Cashback? Balance transfer? Modi-autographed mugs?


Bourgeois of the world, unite!

November 28, 2016

I cannot believe now, that 12 years ago, I was a centre manager for credit card sales – for Coimbatore and Cochin. But to my credit, I didn’t last in that role for more than a year and moved to a different position at Mumbai (I’m not sure if I can claim blame for the fact that credit card sales was wound up in many smaller cities, including those two, soon after). I realise that I missed an opportunity to see it as a service to the nation (and pocket heftier bonuses). How silly of me, to have tried to induce low-paid sales officers to work for salaries and incentives and prizes. If I were to do that role now…

I’d tell my boys, “If soldiers can stand on the border for days, can you not stand outside the ATM for a day and canvass those on the queue? Record Mann ki baat and play it to your prospects. Prove to them it is anti-national if they don’t go cashless. Every card that you sell is a slap on the Pakistanis and a checkmate on terror funding.” I’ll end my pep-talk with some fiery lines from Bharathi, and disperse after Jai Hind.

I’d approach my collections manager and convince him to recommend opening up of the blacklisted territories. “Kottaimedu, Ukkadam and Karumbu Kadai are the last frontiers in our war against cash. If we convert them all to credit cards, there would be no bomb blasts in Coimbatore. It is your patriotic duty to recommend to the anti-national credit team at Bangalore to open up these areas.”

I’d write to the credit team at Bangalore (forgot the exact name of the team – our hearts would bleed to see them declining 50-60% of the hard-earned applications), “Stop declining cards to agents and real estate brokers. How can you be swayed by trivial aspects, such as credit scores, default rates and profitability, when in the long run, your approval of cards for them will sound the death knell for black money?”

What a historic opportunity has been presented to the banks, the Visas and Mastercards, the AirTels and Reliances, and the PayTMs! They have the most iconic brand ambassador in the country speaking on their behalf. Only once before in the history of India, did a business entity get such a glorious chance, and what a peerless precedent they’ve set: East India Company created a giant of a nation out of warring tribes and petty states; they ushered in modernity and technology; they bestowed on us, railways and post offices, mills and banks.

Oh, bourgeois of the world, unite, and build a cashless nation!

Conversations in the time of cashlessness

November 28, 2016

(From my Facebook post, dated 15-Nov-2016)

Yesterday, as I was headed to our village near Pollachi, I could see that all the banks on the bus route from Coimbatore were crowded. At the SBI branch at SIDCO, they had put up a shelter. At the Vadikipalayam branch, 7-8 kms from our village (with buses every half an hour), there were two long, separate queues for men and women.

All along the way, the word ‘money’ had filled the air and kept slamming my ears. Whoever I met, spoke more about money than the failing rains. Not everything that they said was true – but they said what they believed to be true. I am translating and putting down the conversations that stayed with me.

A youngster on the bus:
Everybody is paying wages through the old notes. I have decided not to accept them and haven’t gone for any work today. They do exchange at the bank but one has to stand in the queue.

An old man working at a farm on the way:
It has been 23 days since it rained. So, she (his wife) has also not been able to go for any work.
What money do I have that needs to be exchanged? They (their employer, an IT professional in Japan) usually send money from Japan to another person. That person comes and pays us our salary. I am not sure which notes we will get this month.

Another middle-aged man who joined us:
Who goes to the bank? I get my salary only our owner comes (a doctor from Cochin) here. It has been two months since their last visit. We usually manage with our son’s income. Savings – what savings? Not a single paisa stays. Some expense or other is always there. Last month my mother-in-law died. In our community, we have to spend lavishly for everything.

Modi has announced just like that and left. Everyone here is suffering in the queues. If we go to buy anything at the shops, they first ask us to show our money, and only then turns to take the goods. Everyone is getting their daily wages in old currency. If they visit the bank to exchange, they lose a day’s wage.

Who gives change for 2000 rupees. Today, the one who has a 100 rupee note in his pocket is richer than the one with Rs.2000.

At the petrol bunk, they take the 500 rupee note only if we fill for 500 rupees.

I heard that bundles of 500 and 1000 rupee notes came floating on the Ambarampalayam river. Some of our boys went to see it. Big shots are there at Ambarampalayam and Vettaikaranpudur. Though there is no tax for agricultural income, if they show so many crores, will there not be questions on how so much could be earned through farming? They are all into various businesses.

Someone said that an Omni van stopped at a dustbin near Eachanari. They unloaded a few boxes and burnt them. All of it was cash. Nobody knows who they were.

What worries do the black money hoarders have? They’ll wait till next month. Whatever they are not able to convert (into white), they would just throw away and walk off. They would make up for it in the next month. (Black money is a flow and not a stock. – Prabhat Patnaik)

Yesterday, they drilled a bore well at Chettiar farm. Even after 1000 feet they got no water. Last year too, they had dug 5 bore wells and got nothing.

On your electricity line, the three phase current has not been available for the last 3 days. At your neighbouring farm, they said they hardly had enough water for the cattle. Work will get done only if the lineman is paid.

Our neighbouring farmer:
I had opened a bank account for the gas connection. But I haven’t put any money in it so far.

The milkman has already told us that he would pay us only in the old currency. He pays us every fortnight. His company has told him that they would pay him only in old notes. Such a big firm – why can’t they pay in new currency?

My brother’s son is travelling. He called me to tell that the salt price to going to shoot up to Rs.300 per kg. He asked me to stock up a sack of salt. I ignored it – what is the big deal if there is no salt?

The woman who grazes her cattle on our farm:
My brothers have borrowed all the money from me. They’ll return when I need it. What indulgence do I have have?

Yesterday, the VAO’s assistant called me and gave the Deepavali saree. Usually it is given before Deepavali. But this year it has come only now.

I don’t know whether I’ve a bank account. The newspaper boy took Aadhar card and photo. He withdraws money every month and gives it to me. He takes 50 rupees. He does this for all of us. Earlier the postman used to do it. This boy is also some government employee. (She has been abandoned by her husband, and gets a pension of Rs.1000 through a Government scheme).

As you warned, the tomato prices are very low. At Giri annan’s farm, they have left the tomatoes unplucked.

An old couple, who own a 10-acre farm:
There has been no rain. If this situation persists, we are going to struggle even for drinking water.

It is alright – Modi has started off a good task. Are these people not flush with black money? Let it all come out.

There was no money floating on Ambarampalayam river…we were there yesterday. Just some cloth bags. People are also spreading rumours that someone burned bundles of cash near Kurichi pond.

There was a long queue at Vadakkipalayam. So I went to the Pollachi Indian Bank and deposited Rs.7000. I’ve 7 accounts. I went with the idea of visiting the branch that was least crowded.

For how much did you purchase tomatoes at Coimbatore (Rs.8 per kg). Yesterday we sent 14 boxes (15 kg per box). After the vehicle rent, toll at check post, commission etc, we got Rs.120. We didn’t even get the plucking wages. I am plucking them myself…paying wages for this doesn’t make sense.

This new 2000 rupee note is like this thin saree. It will tear as easily. Yesterday, at the TASMAC shot, somebody gave a fake 2000 rupee note and had two quarters.

The rich have no worries. The poor also somehow manage. The middle class seems to be stuck and suffer.

(My Facebook post dated 13-Nov-2016)

Last night, as we travelled from Tiruvannamalai to Coimbatore via Salem, the usually crowded buses on that route had many vacant seats. Demonetization seemed to have led to decongestion on long distance buses, at least for that day. My Home-Finance Minister had the premonition to ensure that she was carrying a few 100 rupee notes. A group of pilgrims from Pollachi, who were on their way back from Tirupati via Tiruvannamalai, somehow scrambled to pool together all their 100 rupee and 10 rupee notes to buy their tickets. When the bus stopped at a roadside restaurant for dinner, they did some inquiries and decided that fasting won’t do them much harm. Two black money hoarders who were carrying a couple of 500 rupee notes insisted that their money be accepted by the conductor, and refused to get down in the middle of nowhere at night. The conductor took the bus to the police station. The police promptly got them alighted.

At Salem, I suggested to the Pollachi pilgrims to take a train. Worried about how to reach the railway station, they tried their luck with an apple-vendor. For buying a few apples, the vendor accepted their 1000 rupee note and gave them change. That should have helped them reach Pollachi.

What we talk about when we talk about inconvenience (for the landless and the landed poor):

November 28, 2016

It is not merely about standing in the queues. Like many of our well-meaning friends have mentioned, they are used to standing in queues. (But unlike what the memes say, not to get the latest iphone.)

It is about forgoing their daily wages. In contrast with the good people in the organized sector, there is no concept of paid leave for them. You earn only when you work. Many daily wage earners work at different places on different days. Going to the bank means waiting for a not-so-frequent bus to go to the bank and waiting again to return.

It is about receiving their daily wages in old currency and having to go to the bank again to exchange the currency. You know, they don’t have luxury of using plastic money or stocked up vegetables in the fridge and provisions in the shelves.

Going to the bank again, means foregoing their daily wage again.

More than anything, one of the main reasons they have resisted for so long, and still resist going to banks, and such places, is because, going there makes them feel worthless, and dependent on the mercy of others. All their skills mean nothing. All their ability to lead a completely self-dependent life on the land comes to nought. To add more insult, their worthlessness will now be branded with indelible ink on their working-class fingers.

Shoot the idea

November 28, 2016

‘The idea is good but the implementation is bad,’ is the common refrain that we hear from the 7% (as per reliable surveys, which I won’t question) who criticize demonetization. I belong to an even more minuscule minority. I believe, the idea is bad, and therefore, the implementation is shoddy. Or rather, the idea is bad, even if the implementation had been exemplary.

I have no doubt that almost all of us have been complicit, in varying degrees, in the generation of the so-called black money. But in a country with one of the highest inequality rates [Top 1% own 58.4% of the wealth in India, and top 10% own 80.7% of the wealth; as per other reliable studies], it defies logic to go after 100% of the people, when the same or better results could have been achieved by targeting the top 10%. Even if the major black money hoarders lie outside the official top 10%, it would have been surely possible to identity the major sources of black money generation and go after them. That would have been much more optimal use of available resources and bandwidth than this mammoth wild goose chase.

Two other aspects irk me more.
One is the now stated objective of a cashless (read, digital) economy. In the short run, it shows complete disregard for the current demography of the country. In the long run (though all of us will be dead), it betrays an utter lack of concern for privacy and freedom. It is scary to think of so much data in one place. It’ll lead to more centralisation. It does seem inevitable now. But there is still that minuscule minority that dreams of a decentralised society, where other non-digital modes of truly cashless living shall emerge.

Secondly, the assertions about the moral basis for the idea. The moral high ground that is being claimed for this move is something that my mind refuses to concede. No moral act needs such secrecy and deception.

Some of the kurals that I’ve been using when I discuss Aram with school children, have been continuously ringing inside my ears during the last couple of weeks:
இன்னா எனத்தான் உணர்ந்தவை துன்னாமை
வேண்டும் பிறன்கண் செயல். (316)
Shy away from doing to others
what you perceive would have harmed you.

நன்றே தரினும் நடுவிகந்தாம் ஆக்கத்தை
அன்றே யொழிய விடல். (113)
Even if some good comes out of the gains generated by
being unfair, desist from making that gain.

வேலொடு நின்றா னிடுவென் றதுபோலும்
கோலோடு நின்றா னிரவு. (552)
The extortion and graft done wielding the sceptre
is no different from robbery done pointing a spear.

உள்ளத்தாற் பொய்யா தொழுகின் உலகத்தார்
உள்ளத்து ளெல்லாம் உளன். (294)
One who, true to his heart, lives without lies,
will forever live in the hearts of all.

மனத்துக்கண் மாசிலன் ஆதல் அனைத்து அறன்
ஆகுல நீர பிற. (34)
True moral integrity lies in being spotless in your thoughts;
everything else is loud and blatant posturing.