1. Why Steve Forbes called demonetisation a ‘massive theft of people’s property’

Why Steve Forbes called demonetisation a ‘massive theft of people’s property’

Steve Forbes, the Editor-in-Chief of Forbes magazine on December 23, criticised the demonetisation move in an article by saying that it was a 'massive theft of people's property'. Here's what he had written.

By: | Updated: September 4, 2017 11:52 AM
demonetisation, steve forbes, demonetisation forbes, demonetisation modi, demonetisation pm modi, Modi steve forbes, india forbes, forbes india, forbes demonetisation, modi demonetisation In his sharp attack on PM Modi’s demonetisation move, Steve Forbes had gone all out to say, what they have done to the money is “sickening and immoral”. (Images: Reuters)

PM Narendra Modi’s demonetisation move in November has come under the scanner once again after the Reserve Bank of India released its Annual report. On November 8, the central government had scrapped Rs 500 and Rs 1,000 notes and claimed that the decision would eradicate black money, fake currency and corruption. When the bills went out of circulation, the central bank issued Rs 2,000 notes and a new series of Rs 500 notes. Meanwhile, the annual report by RBI said that 99 percent of scrapped currency notes came back to the banking system. Additionally, India’s GDP growth tumbled to 5.7 percent in the April-June quarter this year, giving signs that the slowdown was induced by demonetisation. Ever since the GDP data was released by Ministry of Statistics came out, critics have been having a field day. This also brings to light an article written by Steve Forbes, the Editor-in-Chief of Forbes magazine on December 23, where he criticised the demonetisation move by saying that it was a ‘massive theft of people’s property’.

In his sharp attack on PM Modi’s demonetisation move, Steve Forbes went all out and said what they have done to the money is “sickening and immoral”. Forbes called the Indian bureaucracy to be ‘notorious’ for corruption, red tape and lethargy. In the article, Forbes has given an overview on how the demonetisation move was carried out by the government; about the cash crunch, ATM queues, and the increase in governmental control over lives. Here are the reasons why Forbes said, what he said about Modi’s demonetisation move.

1. Forbes compared the decision with former Prime Minister Indira Gandhi’s infamous sterilisation program in the 1970’s, calling it Nazi-like eugenics. Forbes wrote: “Not since India’s short-lived forced-sterilization program in the 1970s–this bout of Nazi-like eugenics was instituted to deal with the country’s “overpopulation”–has the government engaged in something so immoral.”

2. Forbes has criticised most of the narratives which the government has been using to support the demonetisation move. He also wrote about how businesses are closing as companies are not able to pay their employees.

3. Forbes condemned the excessive rules and taxes imposed by the Indian government, which he says is the reason of the informal operation of a cash-based economy.

4. On the issue of terrorism, Forbes said that just a currency change cannot stop terrorists from committing evil acts of terror. Coming down heavily on the reasons cited by the Modi government for the note ban, the magazine said: “Human nature hasn’t changed since we began roaming this planet. “People will always find ways to engage in wrongdoing. Terrorists aren’t about to quit their evil acts because of a currency change.

5. On the issue of digitisation, he said that it will happen in a free market one way or the other, but it needs time.

6. Forbes suggested that India should get rid of such a complex tax system, which is the main reason for tax evasion. Forbes suggestion for India is, “…slash income and business tax rates and simplify the whole tax structure; make the rupee as powerful as the Swiss franc; hack away at regulations…”

7. Forbes lambasted the countries which have been making similar moves like demonetisation by using the reasons provided by the Indian government. He said that such a move is only about making the government have more control over personal lives.

8. Forbes wrote: “India is the most extreme and destructive example of the anti-cash fad currently sweeping governments and the economics profession.” He added that India, apart from immorally harming its own people, has also set a bad example for the rest of the world.

  1. Hiren Trivedi
    Nov 1, 2017 at 8:47 am
    Steve Forbes, please google, people standing in Queue to buy Starbucks coffee for just Rs. 100 for 1 day, and all people who sympathize all the victims of demonetization , also must see this.. s: facebook /iSupportNamo/photos/a.391002257587533.86642.390976557590103/1782493071771771/?type 3 theater
    Reply
    1. Hiren Trivedi
      Nov 1, 2017 at 8:12 am
      Steve forgot to check this [ as exctracted from : hindupost /economy/rejoinder-steve-forbes-article-demonetization/ ] The percentage of people who pay tax is abysmally low. As per the government data only 2.87 crore individuals filed income tax returns for the year 2012-13 but 1.62 crore out of them did not pay any tax. In other words, the real tax payers are just 1.25 crore which is one percent of the country’s population !!! Government data also reveals only 24 lakh people have declared their incomes as above Rs. 10 lakh whereas 25 lakh cars are bought per year since 2011!!! for more copy paste and read - : hindupost /economy/rejoinder-steve-forbes-article-demonetization/
      Reply
      1. Hiren Trivedi
        Nov 1, 2017 at 8:05 am
        Also ... All the Black Money that was stashed in the housed of the rich people, have seen them pushing out Money - in to the account of their employees, for eg, If one has 500 employees working, they were paid in cash and given bit extra to deposit in their account, I too was paid in Cash and and that month my ry was DOUBLE , I had to return the half amount back to employer, it was due to the inconvenience as he had received money , all of white from Australia to do the ries and expenses of new office furniture , so all the vendors were too paid immediately in advance as 50 from old currency. The employers where I worked were paying all the taxes and had no black money stashed , still had to do this, so imagine the employers in India who had crores in their bungalows cellar or under the bed- they did give all employees bit extra that would look legal [ for e.g. Rs. 25000 /- per employee ] and not fall in to the trap of Income tax department when things settled..
        Reply
        1. Hiren Trivedi
          Nov 1, 2017 at 7:54 am
          Well Mr. Forbes , firstly if you are NOT IN INDIA , and NOT staying here , you don't know what is right or wrong... I am a very common man from Gujarat, Ahmedabad , and I did stand in queue to exchange old currency just once because I did not have "the bundles of Black Money " so no complaints, yes I did stand in queues couple of times, to withdraw money, but it was all on track. you missed valid point, the fake Indian currency that was printed in Pakistan , was stashed in Pakistan and was about to be moved to India - approx 500 crores Indian Rupees to 600 Crore Indian Rupees of fake currency, all these fake currency was going to go to terrorists as well as Indian market, the person who was in charge for printing this fake currency also committed suicide, so please dig bit more and you will come to know the truth, take journalism bit seriously. The Demonitazition has effected people who used to Earn more and not pay taxes as well as who had black money, not common man.
          Reply
          1. H
            Harish
            Sep 12, 2017 at 10:32 pm
            I wonder on which date exactly ₹2000 notes were issued. It's declaration was done about a month before Demonetisation on 8 Nov. 2016. I had even wondered in my post on this news as to why this govt is issuing yet another high denomination note when it says it is committed to ending black money. What Steve Forbes says about "immorality" in demonetisation is hidden in timing of releasing these ₹2000 notes to select few on the pretext of calibration of ATMs. Another 'immorality' is in allowing anonymous cash donations to temples which got a windfall. We all are wondering where all the black money has vanished, conveniently ignoring the cash donations. Legitimizing donations was a great b er by the govt.
            Reply
            1. K
              K R
              Sep 11, 2017 at 1:13 pm
              Once we recap Dr MMS's statement in Rajya Sabha (post demonetization debate) and compare what happened since then and continues till now will find almost matching. Word by word his statement is being proven as prediction. One should have guts to admit it so that corrective measures are not delayed and sufferings mitigated. Now Modiji should have guts to seek apology from MMS for ridiculing and stooping to conquer and cover the wrong decision.
              Reply
              1. Abdullah Reddy Baddam
                Sep 9, 2017 at 1:06 am
                That is the reason India'd GDP is falling, what is the remedy now?
                Reply
                1. V
                  Vishwas Patil
                  Sep 5, 2017 at 12:23 am
                  Many of the comments of Forbes are not tenable. Black money is not because of high taxes. In fact India is one of the countries with reasonable taxes. But corruption is main source of black money. DeMon has hit ti to some extent. No Indian companies are closing because of DeMon. Who told him this? Many such baseless statements. Mr. Forbes seem to be deliberately talking to malign PM Modi. Must be some hidden agenda.
                  Reply
                  1. K
                    K R
                    Sep 11, 2017 at 1:04 pm
                    Vishwas, Did you conduct any survey to denounce the claim of all others (I have personally seen too) that companies are closing down? What is the job creation promised and what is available now? What is the loss of jobs due to demonetization? Did you analyze? What is the rate of terrorism related killings before and after demonetization, do you know? And many more. Have some time to read and enquire details before posting denials so that wisdom prevails.
                    Reply
                  2. Jayesh Sheth
                    Sep 4, 2017 at 9:12 am
                    for a long term people realize the economy at present like a baloon any time it will end.because on one side petrol prize increade at 71.20,kerosence subsidy nearly to end subsidy gas prices is nearly to go farmers are suicde and inspite of that you sold your property and by disinvestment and collecting the money and inspite of that gdp is 5.7 ?
                    Reply
                    1. T
                      tincher iodene
                      Sep 4, 2017 at 12:41 am
                      Forbes doesnt write about complex tax system in US.. where new president is talking to bring about new tax reforms ... this hypocrite cries because Modi govt doesnt dole out largesses to his publishing house ??
                      Reply
                      1. S
                        Sachin
                        Sep 3, 2017 at 6:59 pm
                        Mr. Forbes does not have a say in his own country. Who cares about his views on India! For all these Americans, it is easy to preach to others. There are pros and cons on demonetization. Only supporters of the Congress Party will find the negatives of such a measure.
                        Reply
                        1. Partha Sarathi
                          Sep 3, 2017 at 2:35 pm
                          : hindupost /economy/rejoinder-steve-forbes-article-demonetization/ Please see my rejoinder to Steve Forbes in the above link. Parthasarathi B N V
                          Reply
                          1. V
                            Vinay
                            Sep 3, 2017 at 12:13 pm
                            What to do? The whole world has their politicians educated and accomplished. Here in India we have academics fail politicians running the country. And that too they say lies looking at your face. Very sad state and bad luck for Indian people.
                            Reply
                            1. R
                              Rushil
                              Sep 3, 2017 at 11:58 am
                              This guy is an American politician. Irrespective of whether DeMo was a good move or a bad move, we should not pay attention to what politicians of other countries say because they only care about their own country and interests. Most of these foreign people don't even understand how complex the economy is. We should instead listen to our own economists who have more experience and local knowledge
                              Reply
                              1. R
                                Rushil
                                Sep 3, 2017 at 11:59 am
                                Correction: They don't understand how complex the INDIAN economy is
                                Reply
                                1. A
                                  Anita
                                  Sep 3, 2017 at 3:02 pm
                                  Our economists have made it clear Demo was a disaster. Those who support Demo are anti-nationals. And Demo was a massive theft of poor people's money
                                  Reply
                                  1. Abdullah Reddy Baddam
                                    Sep 9, 2017 at 1:17 am
                                    Hi, Anita please do not comment anti-nationals. stop these words. Listen to every body's opinion, then approach to a neutral economist advise. As he said our economy is very complex. What is the remedy now.....
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