Black Money: How it is Generated in India? How Can it Be Eliminated?

Black money is essentially that money which is set aside and transacted without proper documentation or account book entries for purposes other than for normal day-to-day living of individuals. Most often such transactions are of high amounts.Since the transaction is unaccounted, the money goes out of the taxation system and the government loses tax revenue due to it.

Very often black money transactions take place in hard cash and such cash is stacked in the custody of individuals, instead of the place where it should genuinely be lying-the banking system.Black money transactions drain out the currency circulation and place greater stress on the government to print and issue more and more currency notes than actually required.

Black money is often generated in transactions that are illegal, such as gambling, bribes, smuggling, drug trafficking, human trafficking and by a variety of other such acts. Large scale black money transactions also take place in commodity trades, labor contracts, election campaigns, mining, scrap trades, used vehicle trades, gems and jewelry trade, etc.

Money which one gains by illegal means without proper accounting is, therefore, black money. Money paid and received for unfair benefits is also black money, which is sometimes called corruption money.

Black money generates black wealth and black economy which runs parallel to the legal economy monitored by the government. The high presence of black economy transactions cause the formal economy weak and ineffective. It causes a few individuals to have enormous purchasing power as compared to the majority citizens which creates higher levels of economic inequality.

Now let us consider some manner in which black money is generated. Let us take the case of a school or a college which has some good reputation. The reputation causes more and more parents aspiring to have their wards admitted in such schools or colleges. A very glaring example is the private medical colleges in India. Now there is a big demand for their courses and seats. Suppose that the government has fixed a small percentage of seats to be allotted at the discretion of the management or the persons who are in the decision making positions even while having a publicly known fee structure. This causes some seats to be allotted to some students on the basis of corruption money that they pay to influence the decision makers. Since this money cannot be accounted by the legally accepted accounting system, the money, the moment it is paid becomes illegal or black. It is common knowledge that some private medical colleges in India allots some seats by taking a couple of million rupees in black. Since, it is not normally possible for people who have legitimate incomes to pay such huge amounts for just getting their not-so-bright wards admitted for a medical degree course or a reputed school such black money payments are often made by those who have black money cash stacked with them. This black money in hard cash then get transacted and moved from one custodian to another in return for a small favor. If the money is not so large, the person who got it slowly pumps it in to the main economy and make it white. Usually, he or she spends such easy money  lavishly for parties, purchase of expensive white goods such as cameras, mobiles, i-pads, ornaments, gems and during luxury travels. He or she may use it for lavishly furnishing or constructing expensive homes. 

Contractors who are dealing with large numbers of daily wagers have to transact huge cash on a daily basis. They may show individuals payments higher in the books while making lower payments to the individuals. This way they create large sums of cash which is unaccounted which they use for illegal transactions later.

When large scale purchases take place, many companies are willing to pay some percentage of the transaction as commissions to the people who have helped them to settle the deals. While such commissions are legal for private-to-private transactions, for governmental or public transactions they are illegal. If in the latter case commissions are paid, it has to be illegal and therefore out of corruption. It becomes then black money.

There are hundreds of such methods by which black money transactions routinely take place. While black money is common through out the world, its impact and quantum is more in under developed or developing countries like India.

It is almost impossible to eliminate corruption and black money in a country, so long as there are people who are dishonest, greedy or unscrupulous with lower maturity levels. Yet, its impact and prevalence could be controlled to a greater extent by better methods of governance. However, better governance is not always possible when the people in key positions of governance are themselves are without competency, character, courage and compassion. 

One of the easiest method to control black money is the strict imposition of restrictions on hard cash transactions. It is not very difficult with banking becoming almost computerized and online. I have written about some aspects of it earlier.

Black money economy has to be curtailed if India wants to have progress and development that is beneficial to everyone. If greed and insecurity feelings are removed from the minds of the people, this social evil might start declining of its own.

Every right thinking Indian should give a serious thought about it.

Picture Preach Cheaters of Our Modernizing World!

Many of you may not have understood what I meant by the phrase picture preach cheater or ppc in short. But picture preaching is not a thing that is too strange a phrase after all. Picture preaching has been a common method used by Christian preachers and missionaries for the last several decades. I remember listening to such a preacher, preaching with audio visual projections of artistic images created on the basis of the book titled Pilgrim's Progress (the christian allegory of John Bunyan published in 1678), during my childhood.

But I am not going to write about such preachers.

I am going to write about another kind of picture preachers who essentially cheat the gullible public using all sorts of audio visual tools of modern era. They cheat every one very cleverly by their tactics, networks and cleverness. 

They are the picture preach cheaters of economics, trade and business of modern era!

They are the modern day opinion makers and social media glitterati who keep preaching with their artistic pictures and stereo voices about various aspects of human trade, business and economic policies of the governments. 

They are all paid preachers who are paid for disguised cheating of the masses. They are paid in millions, perhaps hundreds of times more than the average earning of any average income earner of modern era who toils hard to earn his livelihood.

But the preachers preach for their masters to make quick money in billions without much toils which in reality is a cut from the earnings of the millions of hardworking people of the world. And these picture preachers are nicely remunerated.

The modus operandi is simple. The masters first spend money to make some ordinary fellows with some preaching and teaching abilities and promote them as glittering personalities. They purposefully make the world know about the millions that these preachers earn per hour of their preaching so that the common man wonder and adore them for their super human abilities of knowledge and preaching. 

The common folks just cannot digest that someone could be paid such extravagant sums unless they have some superior abilities. The common folks are always ignorant of the clever tactics that the cheats keep experimenting on them! Though they are always victims of the so called advertisements, they can never understand how advertisements be-fool them!

That way the masters of the business world make the so called celebrities of the economic world, the picture preach cheaters, who keep trying to influence the common folks about business and economic dynamics of the modern world.

Their combined efforts make all the difference in the economic scenario of the nations. Their efforts could make a practically non existent mushroom company to be viewed as much more valuable than a company which has been consistently doing a good economic activity for decades creating much worth for its employees, clients and stake holders. 

This way hard earned wealth and the efforts of all hard working people are made worth less or futile within a short time with money flowing to worthless entities. The economic principles are thrown out in place of newly invented financial jargon as promoted by the picture preach cheaters.

The picture preacher cheats of economics and finance are the ones who make the modern day share trade to flourish in such a way that it sweeps all the money generated by hard working people in the farms, in the factories and in many other places. 

The modern era financial world now has become the play ground of the cheating masters and their cheating preachers. The masters acquire and sell companies and make profits in billions overnight with the help of the picture preach cheaters while the people of those companies work hard day and night to make all these possible without ever getting any benefits. Perhaps they are cheated and deprived!

It seems much easier for these picture preach cheaters to influence the governments to make their policies of economics, finance, trade and taxation favoring what the former want to achieve.

I have written about some aspects of this modern trend in some articles earlier too. [Read the article on plutocracy ]  

  

Plutocracy: Know More About this Subtle Economic Evil that is Slow Poisoning this Earth to Catastrophe!

Have you ever heard about this word Plutocracy?

Since you are reading this blog in English, the chances of you knowing about Aristocracy, Democracy, Bureaucracy and Technocracy could be a better possibility. But plutocracy is a relatively a new term and in the 'free market' and 'liberalized' world order of the current times, it is very very important to know more about it, if you haven't known about it earlier.

Plutocracy is the situation when a society is indirectly ruled by a few rich individuals. It is the situation when a handful of the wealthiest people indirectly controls the country or the world and its governments and the people.

If you have the intelligence, capacity and interest you should consider knowing more about this by reading about it in Wikipedia.[ Read about Plutocracy in Wiki by clicking here!] 

Now you should consider reading the research article by the Global Research Centre for Research on Globalization on Global Plutocracy.

Let me quote a few lines from this article which warns us about the modern economic evil called plutocracy:

There is no parallel in human history to the immense concentration of wealth that exists today, nor to the extremes of parasitism and decadence that constitute the “new normal.” Contemporary capitalism—what the ruling class and its political and media flunkies call the “free enterprise system”—has created a world in which every policy decision is dictated by the need to protect and increase the wealth of an infinitesimal portion of the world’s population.

This global plutocracy—by definition, a society governed by the wealthy—generates a huge and ever-increasing portion of the ruling elite’s wealth not from the production of useful products and expansion of society’s productive capacities, but from the manipulation of money, speculation and outright swindling—essentially criminal activities that are destructive of the productive forces.

A few hundred people, backed by an army of bribed politicians, academic apologists, intelligence spooks, experts of all sorts and the repressive force of the military and police, hold civilization by the throat and threaten to destroy it to satisfy their insatiable greed.

This social—or, to be more precise, anti-social—element is virulently hostile to the people, contemptuous of democratic rights, and militaristic.

In its effort to expand its personal wealth, it relentlessly attacks the living standards of the working class—the vast majority of the population. All over the world, governments controlled by the plutocrats impose ever more painful austerity, cutting wages, slashing jobs, dismantling social programs, closing schools, gutting health care. State treasuries are emptied to provide bailouts to the banks and corporations and central banks pump trillions into the financial markets to drive up stock prices, corporate profits and CEO pay. All legal restrictions on profit-making are lifted.

If a few persons are managing the wealth of the nation or the globe wisely, I should not have any problem with that. Rather no one should have and we should be happy. But if they draw their wisdom from evil sources and not as per divine guidance, then they are perhaps becoming agents of  evil forces either knowingly or unknowingly. The end result would be catastrophe or painful destruction and misery. 

When some one becomes a victim of slow poison, it is not very easy to understand its effects immediately. But end result is sure.

How do you know whether you are an advocate of plutocracy? 

You should consider reading this blog too where you can read about the  divine advice regarding management of wealth .

What could be done to prevent plutocracy from slow poisoning our world to catastrophe?

It is time to think!