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"Do good intentions matter if they lead to bad outcomes."

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Akansha Jain on Sat Nov 26, 2016 11:59 pm

Yes, I believe good intentions do matters whether it lead to the desire outcome or not. While making any decision people only focus on its positive aspects and unaware of its negative impacts, as one makes decision on the bases of its assumption and never know how it will prove in the light of reality.
Talking about this statement in context with the recent “demonetization” move made by our Prime Minister “Narendra Modi” on 8th Nov 2016 which is such a historical move in the history, with the intention to clamp down against the black money, fake currency and terror financing and ‘fixing of pipelines so that no new black money can generate in future’.
Talking about its negative impacts:
It has almost shaken every sector of the economy from “real estate, “gold”, to “stock market”.
The terrible situation arises due to poor administration and faulty planning of “a move with good intentions”! Rules are being changed every day as initally there was a limit of Rs.4000 per day to change old currency with the new one which was later changed to Rs.4500 but after few days when the government realised that it was running out of cash it had changed to Rs.2000 and which troubles honest citizens who are tries to earn their bread every day are thrown into deep end in a massive way, they are almost begging for their own money deposited in good faith in banks. And it’s completely destroying the liquidity in the system it need not done in this way, there could have been a better way of execution. Implementation questions have been raised.
But in-spite of the negative consequences of the decision of “demonetization” in the present scenario, I personally feel that there is not a perfect planning that one can do for everything. This is just the radical move to clean the system which everybody wanted from so long. The pain worth the gain if this help hit the black moneyin future. I believe in the long run we definitely have a white economy and MODI will be remembered as a ‘corruption fighter’.
In my opinion Narendra Modi should be praised for his good leadership and better governance.And soon we will have a corruption-free economy.

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"Do good intentions matter if they lead to bad outcomes"

Post by abhay.jain.18j on Sun Nov 27, 2016 12:04 am

Demonetization is the act of Banning /taking back of a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.
Good intentions are always appreciable irrespective of the type of the initial outcome it lead to , as the long term outcome is always positive. Same is the case of demonetization. The demonetization of Rs.1000 and Rs. 500 bank notes was a step take by government of India on 8th November 2016, ceasing the usage of Rs.1000 and Rs.500 notes as a form of legal tender in India from 9 November 2016. The intention of government to demonetize the currency notes is highly commendable as it will fight against corrupt storage of black money, fake currency and terrorism.
Impact of this demonetization in the economy would be as follows:-
1. Deposit in the short term may rise, but in the long term, its effect will come down.
2. India risks its position of being the fastest growing largest economy: reduced consumption, income, investment etc. may reduce India’s GDP growth as the liquidity impact itself may last three -four months.
3. The real impact will be on counterfeit/fake currency as its circulation will be checked after this exercise.
4. The major impact would be on the people having their black money in the form of cash.
5. A lot of money that operates in the shadowy economy will now become part of the banking structure and banks will have a lot more money to support the economy
6.The real estate sector will definitely be affected by the demonetization exercise, as it has traditionally seen a very high involvement of black money and cash transaction as 30% of the real estate sector is funded by black money but if there is a decrease in home loan rates by the bank then the real estate can see a boom because recently SBI reduced it home loan rate from 9.75% to 9.15%. In other words, the resale properties segment will take a big hit.
7. Income taxes rates may come down.
8. Loans will become cheaper.
10. Housing will become affordable.
Troubles due to demonetization are:
1. People have to stand in long queues in banks to exchange their money or to deposit or withdraw some money.
2. Shortage of money in banks and ATMs.
3. People who do not have bank accounts are facing problem.
4. Travelers and Farmers are also suffering a lots of problem due to demonetization
5.Tourism and hospitals business has fallen down.
Finally i would like to conclude that this step taken by government will lead to a high growth and reduction in the parallel economy side.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Shipra jain on Sun Nov 27, 2016 12:47 am

YES, I do agree to the point that good intentions always matters in every decision making. It’s not always necessary that decision taken by keeping good intentions in mind will always give good results it may also result in bad outcomes.
PM MODI has good intentions while announcing demonetization of 500 and 1000 notes. His main motive behind this step is to regulate the flow of money which has stopped to a certain extent in the economy. Demonetization is a good step for long run but for short run it had made life hard for few days as no liquidity in market.
What is demonetization?
The replacement of old currency notes with new currency notes is termed as demonetization.it is not the first time demonetization has happened in India in 1946 and 1978 also it happened to curb unaccounted money.
SHORT RUN EFFECTS OF DEMONETIZAION:-
• Farmers, vegetable vendors, daily wage workers all are in major problem because of non-availability of working capital.
• It will not affect fake currency in long run as people can also make fake currency for new notes also.
• Shortage of liquidity in market will also hamper growth of business.
• Real estate will get a great shock after this news.
LONG RUN EFFECTS OF DEMONETIZATION:-
• Black money will come out of people to a great extent.
• Government revenue for taxes will increase as people will deposit bring unaccounted money in accounted form.
• Real estate price would see a great downfall in its prices.
• GDP rate will decline.
CONCLUSION:-
DEMONETISATION would result in positive in the long run as it is with a good intention by PM MODI

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by sonakshi chadha on Sun Nov 27, 2016 10:28 am

"Do good intentions matter if they lead to bad outcomes."
The decision taken by our Honourable Prime Minister Mr. Narendra Modi of demonetizing the old currency and replacing it with new one. Demonetization basically means that the currency which is legal has become illegal and would no longer be accepted in future.
This was declared by our PM on 8th November,2016 at 8:15 p.m. that this demonetization will take place from the very next day, i.e., 9th November, 2016. This decision created a panic in the minds of people and specially for those who had black money. Instead of the old 500 and 1000 rupee notes new notes of 500 and 2000 were launched.
This decision of demonetisation was taken up with an effort to stop the terrorism funding, and to finish the black money in the country. After this decision was announced banks and ATMs across the country faced severe cash shortages. The cash shortages had detrimental effects on several small businesses, agriculture, and transportation. Also, following Modi's announcement, the BSE SENSEX and NIFTY 50 stock indices crashed for the next two days.
The demonetisation received support from several bankers as well as from some international bodies, although it was criticised by members of the opposition parties, which led to demonetisation debates in both houses of the parliament and triggered organised protests against the current government in front of the parliament and elsewhere across India.
Following were the key points after demonetisation took place:
• Citizens will have until 30 December 2016 to tender their old banknotes at any office of the RBI or any bank branch and credit the value into their respective bank accounts.
• Cash withdrawals from bank accounts were restricted to ₹10,000 per day and ₹20,000 per week per account from 10 to 13 November 2016. This limit was increased to ₹24,000 per week from 14 November.
• For immediate cash needs, the old banknotes can be exchanged for the new ₹500 and ₹2000 banknotes as well as ₹100 banknotes over the counter of bank branches by filling up a requisition form along with a valid ID proof.[1] This exchange is restricted to once per person.
• Initially, the limit was fixed at ₹4000 per person from 8 to 13 November 2016.
• This limit was increased to ₹4500 per person from 14 to 17 November 2016.
• The limit was reduced to ₹2000 per person from 18 November 2016.
• Initially, all ATMs were dispensing banknotes of only ₹50 and ₹100 denominations and cash withdrawals from ATMs were restricted to ₹2000 per day. From 14 November, onwards, ATMs recalibrated to dispense new ₹500 and ₹2000 notes will allow a maximum withdrawal of ₹2,500 per day, while other ATMs dispensing banknotes of only ₹50 and ₹100 denominations will allow a maximum withdrawal of ₹2000 per day.
However, exceptions were given to petrol, CNG and gas stations, government hospitals, railway and airline booking counters, state-government recognised dairies and ration stores, and crematoriums to accept the old ₹500 and ₹1000 banknotes until 11 November 2016, which was later extended to 14 November 2016 and once again to 24 November 2016. International airports were also instructed to facilitate an exchange of notes amounting to a total value of ₹5000 for foreign tourists and out-bound passengers.
Under the revised guidelines issued on 17 November 2016, families will be able to withdraw ₹250,000 for weddings from one account provided it was KYC compliant. The rules were also being changed for farmers who are permitted to withdraw ₹25,000 per week from their accounts.
There were different sectors which were affected by this decision:
• Stock Market
• Transportation
• Agriculture
• Banking
• Business

The decision made is good for long term perspective but in short term it is creating a lot of problems for everyone.


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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Kiran Moolrajani on Sun Nov 27, 2016 1:58 pm

Intentions are good if they carry a positive note with them and are beneficial to all the ones who are affected by them. Good intentions are only good when they are carried out on a right time like what our Prime Minister Mr. Narendra Modi did. His reason of doing so was very simple... he wanted to remove all the bad practices from our nation and so for that he took a major step of demonetization.

Demonetization is mere stoppage of the currency notes of 500 and 1000 which means the currency which was earlier legal has now become illegal if we say in a lay man's term. It will definitely affect the economy on a large scale and definitely the GDP will fall down. The prices of interest rates upon loans, property business and other commodities will become cheaper now.

As we are aware that property business prices are paid in cash for over 20%-50% and the rest goes the form of black money so by the act of demonetization the cash will become scarce for these business owners and so they will be dealing fairly in the market in the form of white money so with this we can say that the prices will surely go down the commodities will go more cheaper in the coming times.

This will surely act as a trouble as the market will require at least 6 months to recover and till that time the business ventures will be facing the losses which can also not be ignored so coming to the conclusion i would like to say that it is an amazing move taken by our Prime Minister and we should be proud of him for taking such a step and removing the act of black money into the economy.

We all should support him in this fight and stand together united.

JAI HIND

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by siji abraham 1650 on Sun Nov 27, 2016 3:14 pm

Do good intentions lead to bad outcomes?
Not really. What matters more is what have you done to prevent such outcome and/or what do you do with the its' fallout.
If you were aware that your actions can cause harm to others, you should have taken steps to prevent or minimize it to the extent of your ability.
If you were not aware that your actions can harm others, it is your responsibility to fix their consequences, including making reparations for any damage you caused.
Now coming to demonetization:
Cash has undoubtedly proven a curse, irrespective of its color, for those who have been queuing up at the bank counters following the currency demonetization.
The unprecedented cash crunch has made many wonder if going cashless is the better way forward? It may indeed be but despite the proliferation of alternate payment mechanisms – plastic currency and electronic cash transfer – unprecedented amount of paper currency is floating around worldwide.
If going paperless is the best option, developed economies would have phased out paper currency several years ago. Instead, citizens in developed countries hold more currency per capital than the developing economies. In contrast to per capital holding of $4,200 in the US, average Indian holds an equivalent of just $171 in cash.
Available evidence suggests that more than half of this cash remains unaccounted for, beyond the purview of regular tax reporting. No surprise, therefore, that despite a well-developed tax regime the US loses $500 billion annually by way of tax evasion.
Although information on the underground economy is limited, estimates do indicate that growing economies have not been able to dig it out either. As a result, as percentage of GDP the underground economy constitutes a low of 7.1% in the US to a high of 17.9% in Belgium.
On an average, underground economy worldwide constitutes no less than 14% of GDP. Even in countries like Sweden, which has witnessed a dramatic drop in cash usage in recent years, its underground economy is surprisingly still worth 15% of its GDP. Indian underground economy has been estimated to be between 24-30% of GDP.
Simply put, despite its size ‘underground or shadow economy’ has remained an unresolved global phenomenon. Partly because in addition to supporting large range of blatantly illegal activities, underground economy includes in its ambit a large number of ordinary people, including farmers, wage earners and small businesses.
It is for this reason that flushing out unaccounted money through cash demonetization involves risk of causing collateral damage to a large section of the informal sector of the economy. The trade off is precariously balanced and risky.
This is more so in India where informal economy constitutes an estimated 40% of the economy. It is for this reason that currency demonetization has literally wrecked livelihoods of a large section of the vulnerable population, as normal banking operations may take several months to be restored. It would need a lot of doing on the part of the government to prove its motive that demonetization has indeed restricted cross-border terrorism and that the gains from unearthed ‘black money’ will eventually lead to positive transformation of the economy?
The loss to exchequer on account of tax-reporting gap has indeed been a serious concern, prompting the government to resort to demonetizing large currency notes.
However, lack of preparedness to back up demonetization with adequate new currency supplies has done more harm than good. Experience shows that many European countries, including Germany and Belgium, which proposed a cap on the size of retail cash payments to improve tax-reporting gaps have learnt that tax evasion is a much larger issue.
Several studies have shown that on an average 25% or more of all cash never gets tendered.
If one looks more deeply, it becomes apparent that tax evasion is a rampant worldwide practice – accounting for 3% of GDP in the US and as high as 10 percent of GDP in India. No one likes to pay taxes, realizing that there are ‘big fish’ who evade tax nets. Consequently, even law-abiding citizens engage in tax evasion opportunistically.
Come to think of it, no one wants to live in a society where rules are rigidly enforced. At a social-psychological level, however, a tax regime is incompatible with peoples’ perception of living in a truly democratic society. Therefore, the mounting challenge before the State is to balance an individual’s right to privacy with society’s need to enforce its laws and regulations.
This in no way means that the state should not enforce the rule of law, but using harsh fiscal measures to serve narrow political interests is unlikely to evoke desired confidence across the law-abiding citizens in the country.
Tumbling of undisclosed cash from hidden lockers may fulfill the populist notion of ending corruption but the harsh reality is that corruption predates paper currency and will live long after it is gone. Though demonetization may provide temporary reprieve from criminal activities, terror networks are known to use transaction technologies that circulate completely outside the legal economy.
There is no denying the fact that massive quantities of unaccounted large-denomination currency is a huge public policy problem, but what purpose does replacing high-denomination notes with fresh notes of similar or higher denomination may serve is beyond easy comprehension?
With each passing day, it is becoming clear that the government had indeed hurried through its decision, counting the proverbial chickens before hatching. Having opened the Pandora’s box of divisive politics, the government should avoid going on an overdrive to make its erroneous decision look optimal ex post. Losing peoples’ faith and investor’s confidence will prove costly in the long run. It is a risk that is not worth taking!
Impact:
1)Black Money: Black money stored in the form of Rs 500 and Rs 1000 notes will be taken out of our system.
2) Terror funding: Fake Indian Currency Notes network will be dismantled bs the demonetization measures.Taking out 500 and 1000 rupee notes out of circulation will have a lasting impact on the syndicates producing FICN' s, thus affecting the funding of terror networks in Jammu and Kashmir, North-eastern states and Naxalite hit states.
3)Real estate may see significant course correction: Black money was responsible for sharp appreciation of properties in metros; real estate prices may now see a sharp drop.
4)Political parties in crisis ahead of polls: Big parties will find themselves hamstrung as cash hoards are often undeclared money. Parties will have to completely rejig campaign strategies in light of expected cash crunch.
5)Moving towards digital payments: Demonetization will likely result in people adopting virtual wallets such as Paytm, Ola Money etc.: This behavioural change could be a game changer for India.













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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Sankalp on Sun Nov 27, 2016 4:09 pm

"Do good intentions matter if they lead to bad outcomes”
Yes it simply matters, we should appreciate such intentions as in this corrupted and selfish world  somebody is there at least thinking about the welfare of the country.
Lets take a simple  example, may be not relevant but for supporting the qoute , suppose mr “A” was going abroad he kept his savings safely with his friend “B”. “B” in his good faith invested such savings in any security and gained profit from it , and just added it in “A”’s saving ,suddenly a decision came and all such savings became a pieces of paper , and here “A” start criticizing him and said you’ve pushed me a big trouble. Do “B” really deserve to get criticized ?? No…… As he has done his job in good faith.
Now lets move towards the main context, the crux of this quote.
Well, here we are discussing about demonitization which could not be an only example but yeah, one of the best  example  for this quote. And as we are discussing about demonetization I would like to counter the statement that “Here intentions are good, and ultimately outcomes will also good “ for sure .
The man over there , yes  I am talking about our honourable prime minister Narendra Modi who is struggling with lots of criticism, for banning 1000 and 500 Rs notes. Does he really did anything wrong??No...
After considering all things regarding economy and as a whole he has taken such decision. He is with us .
He is the only Indian prime minister who has taken such big step against corruption so far , I agree that there are some drawbacks of this decision in shortrun , but in long run it could be one of the best decision taken to curb corruption so far, Now lets move forward towards the shortrun struggles of this decision .
• Farmers supply chain felt the pinch- The entire working class adds up to about 400 million persons. Most of them are unlikely to have any tax-evaded income because their annual incomes would be below the income-tax-exemption threshold. They and their families are bearing pain for the sins of others. Soon all will get settled.

• Effect on small and medium enterprises-  Especially retailers and wholesalers, as almost all the transaction are in cash especially for traders. Their range of goods includes everything from raw materials to intermediate inputs to food items and other consumer goods. For a short run they are facing problem to such extent that they temporarily closed their shops as there was lots of chaos for them.

• Effect on self employed- Professionals like accountants, doctors, lawyers, its been suggested that this particular segment is more concentrated of black money. But the one who is beginner and doing his work honestly ,is facing trouble nowadays .

• Effect on rural area- The area which got deeply affected by the demonetization is rural area, as they are not aware enough  to use plastic money and E wallet .
Debit cards, credit cards, net banking and online transactions that are popular in Urban India are non existent in the rural part. This basic difference is what has a created a havoc for the backward populace.
• Effect on real estate-  the real estate industry, the disruption is likely to be quite severe and long lasting. This sector is the destination where large proportions of black-money flows are converted into real assets, and black-money transactions are all-pervasive.


Now lets move forward towards its long-run benefits…

• Lt Helps government to track blackmoney -  The biggest advantage of demonetization is that it helps the government to track people who are having large sums of unaccounted cash or cash on which no income tax has been paid because many people who earn black money keep that money as cash in their houses or in some secret place which is very difficult to find.

• Check on malpractices - Since black money is used for illegal activities like terrorism funding, gambling, money laundering and also inflating the price of major assets classes like real estate, gold and due to demonetization all such activities will get reduced for some time.

• Increase in tax revenue -  Another benefit is that due to people disclosing their income by depositing money in their bank accounts government gets a good amount of tax revenue which can be used by the government towards the betterment of society by providing good infrastructure, hospitals, educational institutions, roads and many facilities for poor and needy sections of society.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by SHWETA KHANDAL on Sun Nov 27, 2016 4:18 pm

In this single move,the government has attempted to tackle all the three issues affecting the economy i.e.parallel economy,counterfiet currency in circulation and terror financing.There is no doubt that prime minister has pulled out a major coop and substantially enhanced his reputation as a strong leader.
The idea of demonetization is good but it has to be taken into consideration that most of the black money is kept in the form of land,buildings or gold or kept in the form of land,buildings,or gold or kept abroad.Small farmers,sellers,merchants,daily wage labourers and traders are suffering because of lack of proper planning,intelligence and foresight such as recalibration of atm machines.There was need to pile up enough 100 rupee notes and other smaller denomination notes in the market before taking this step. Demonetization is an established practice in monetary policy to tackle black money.The Prime minister has explained why this is a financial surgical strike.It was meant to be suddenly implemented.In the past,demonetization has taken place twice but it fails because the idea is to tackle the black money existing in circulation.This is not tackle corruption or the government is not saying that 100% corruption will be tackled.People are facing problems because the limit of withdrawal has not been kept at a higher level,there were chances that the recycling of black money might begin.The ideal money in circulation has to come to the banking channels.
The stock of the black economy constitutes a major part of the GDP is significant.Even if 50% of this amount is withdrawn,the kind of relief that RBI will get will lead to a rise in the deposit and later on there will be decrease in lending rates plus fiscal deficit.The problem is that investment is not taking place in the economy and the rate of growth of capital formation is down.The only way to bring this up is to divert more funds into investments which will happen when the cost of capital comes down.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by hitesh kriplani on Mon Nov 28, 2016 1:25 am

"Do good intentions matter if they lead to bad outcomes."
Good intentions are only good when they are carried out on a right time like what our Prime Minister Mr. Narendra Modi did. His reason of doing so was very simple... he wanted to remove all the bad practices from our nation and so for that he took a major step of demonetization.
What is Demonetization???It means ending something, (e.g. gold or silver) as no longer the legal tender of a country...The step taken by the PM of India on November 8th 2016 to make 500 and 1000 notes illegal,its outcome can create a lot of trouble but its outcome is not negative or bad ..This step of demonetization was taken against the black money,corruption etc.

Troubles of demonetization are as follows:
1.People who lives in rural area they are still facing problem because they are not having any bank account.
2.Foreign tourist is also facing lots of problem due to lack of awareness.
3.People have to stand in a queue to withdraw his own money from his own account.
4.ATM's are not having enough fresh notes.
5. Sellers and merchants are suffering because of lack of proper planning.

Impact of demonetization are as follows:
1.The value of Indian rupee will increase.
2.It will reduce the black money which is in the form of cash.
3.-It will lead to development of country in form of a digital country.
4. It will help in reducing the tax rate.
5.It will bring more transparency in the long run.
So finally we can say that this is a historical step and should be supported by us as PM is not doing anything for himself but for the whole nation..

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Sheenajain on Mon Nov 28, 2016 12:26 pm

I appreciate when someone is truly trying to make a difference and they fail at it, causing unforeseen harm or pain. However, most times the failing can be prevented by thinking things through more thoroughly and making better plans. It might be possible that in short run it may lead to some bad outcomes but in long run they will surely lead to some positive outcomes.
If we talk about the demonetization practice which is spreading like a fire in our country. Everyone is feeling that this activity is like a biggest source of disturbance in their lives. This is the reason that everyone is blaming our prime minister "Mr. Narendra Modi" for this action taken by him. But nobody could actually realize that the motive and good intentions behind this action. The major objective was to remove corruption and black money from the country.

Lets first talk about, what is Demonetization?
Demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.

What Troubles Present Demonetization?
1) Several ATM's across the nation continue to be useless because of not having enough fresh notes.
2) The rural people are facing problem because of not having bank accounts.
3) Shortage of Rs 100 notes because of improper planning.
4) New Rs 2000 note is useless for daily or day to day transactions.
5) People have to stand in that long line to exchange the money and wait for long hours.
6) Many people have become unemployed.

Impact
1) It will reduce the black money which is in the form of currency and hoard to some extend.
2) It will stabilize banks by capital inflows as required under Govt norms.
3) Reduce the money flows to terrorism and drug traffickers thus controlling crime
4) Reduce the Fiscal deficit and thereby reducing payment of interests to the loans taken under deficits financing
5) Prevent Pvt money lenders to provide loans to Rural people at huge rate of interest
6) In the long run India will have a sustains Growth rate for along time and will be major world economic power to reduce poverty and increase standard of living
7) Transparency- It will bring more transparency in the long run (cashless economy). Since circulation in counterfeit currency will see the end soon.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Shubham Patni on Mon Nov 28, 2016 2:32 pm

According to me , good intentions matter ,no doubt  if they lead to bad outcomes . The good  outcomes may not come now but if we look towards future aspect then it may be possible that it leads to positive results . Demonitisation is a big revolution in this country . Whenever there is a revolution or any change for good outcome , lot of people rebel and are against these changes but after sometime they realize that this step was really good . When the Narendra Modi banned the Rs 500 and Rs 1,000 notes its focus was to stop corruption , fight against black money , fight against all the Benami property holders in the country to make the ‘India of our dreams’
The big step taken by our Prime Minster Mr. Narendra Modi has landed our country in a big dilemma . .Demonitisation is a process of removing a old currency from circulation or general usage . This process has given a wrong perception in the minds of peopleas everyone is assuming that it is mere a politics stunt taken by our prime minister but actually it is not correct.The  public should be made aware with various benefits which will improve their life . Hence a proper analysis of this activity is required .
The various sectors which are being hit by demonitisation are :

Auto
Two-wheeler companies' sales are likely to hit the most in near term, especially Hero Motocorp , Bajaj Auto , TVS Motor etc. Used vehicles sales may also collapse in short term while four-wheelers, commercial vehicles and tractors sales may not see major impact.

Oil & gas
The demonetization of high denomination currency should only have a marginal impact on the Indian oil & gas sector, the brokerage house says. It sees a marginally adverse medium-term impact on sales of petroleum products. It reiterated its preference for refiners ( HPCL , BPCL and IOC ) in the oil sector and Petronet LNG among the gas utilities.

Metal & mining
There is a adverse impact on property investment, automobile, and white goods demand in the near term . The earnings impact for non-ferrous should be moderate, as pricing is LME linked and exposure to these segments is low .

Real estate sector
While the demonetisation initiative by the Central government means further delays in ongoing real estate projects due to the massive cash crunch, it also paves the way for a cleaner and more transparent real estate industry in the times to come.

Impact on bank deposits and interest rate: Deposit in the short term may rise, but in the long term, its effect will come down. The savings with the banks are actually liquid cash people stored. It is difficult to assume that such ready cash once stored in their hands will be put into savings for a long term. They saved this money into banks just to convert the old notes into new notes. These are not voluntary savings aimed to get interest. It will be converted into active liquidity by the savers when full-fledged new currency supply take place. This means that new savings with banks is only transitory or short-term deposit. It may be encashed by the savers at the appropriate time. It is not necessary that demonetization will produce big savings in the banking system in the medium term. Most of the savings are obtained by biggie public sector banks like the SBI. They may reduce interest rate in the short/medium term. But they can't follow it in the long term

Impact on black money: Only a small portion of black money is actually stored in the form of cash. Usually, black income is kept in the form of physical assets like gold, land, buildings etc. Hence the amount of black money countered by demonetization depend upon the amount of black money held in the form of cash and it will be smaller than expected. But more than anything else, demonetization has a big propaganda effect. People are now much convinced about the need to fight black income.  such a nationwide awareness and urge will encourage government to come out with even strong measures.

Impact on counterfeit currency: the real impact will be on counterfeit/fake currency as its circulation will be checked after this exercise.
Demonetization as a cleaning exercise may produce several good things in the economy. At the same time, it creates unavoidable income and welfare losses to the poor sections of the society who gets income based on their daily work and those who doesn’t have the digital transaction culture. Overall economic activies will be dampened in the short term. But the unmeasurable benefits of having more transparency and reduced volume of black money activities can be pointed as long term benefits.

Finance Minister Arun Jaitley on Thursday said the government's demonetisation move is going to have "a positive impact on the economy, including GDP". The steps that the government had taken were the right steps which were being implemented in the right manner. As far as the Indian economy is concerned, including on India's GDP, it is going to be a positive impact .

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by kartikay tiwari 24 on Mon Nov 28, 2016 3:28 pm

Yes I completely agree with above statement that good intentions matter if they lead to bad outcomes and this statement can very well connected with the demonetization step taken by our honorable prime minister shri Narendra Modi on October 8 2016. Indian Prime Minister Narendra Modi announced in a broadcast to the nation that Rs500 and Rs1000 currency notes would no longer be recognized legally as currency. Since then he has been he has defamed my opposition party just because of his decision .But first we need to understand what is actually demonetization is;
Demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.
Reasons for Demonetization
The main reason behind this step is that this was important to remove corruption from India, to tackle black money in the economy and for the betterment of the society. So, the intention of Modiji is very much clear and right but it has various good and bad affect in the whole country.
The various sectors which are affected by demonetization are :
Indian retail
The Government’s recent demonetization move has definitely impacted the India retail industry in the short term due to lack of liquidity in the economy. As Indian retail segment generates a lot of cash transactions, there might be reduction in the sales over the next one or two quarters. However, the impact is felt more by the small traders and the unorganized retailing segment, rather than the organized retailers.
Agriculture
The demonetization of Rs 500 and Rs 1,000 notes will hurt agriculture, informal sector workers — about 482 million people who earn cash incomes — and disrupt India’s consumption patterns for at least the next quarter . Agriculture was expected to grow at 4 percent this year according to this October 2016 CRISIL report, but demonetization is likely to dent that forecast. India is currently in the midst of the winter sowing season, but farmers are reported to be running out of cash to buy seeds.

E-commerce, payment companies to benefit
As e-commerce websites stop cash-on-delivery – the most favored option for Indian online shoppers, comprising 80 percent of sales – and struggle to hand over to banks the money they collected after demonetization, the report predicted a rebound that will benefit both the e-commerce industry and companies facilitating payments to it, such as payment gateway companies, payments banks and electronic money transfer portals.

Automobile
Demand is likely to dip for a couple of months for two-wheelers, but passenger vehicles and tractors will be less impacted. In the two-wheeler industry, around 35-45% purchases are made via financing, while the rest are though banked cash, or are simply "unaccounted".
But in the passenger vehicles segment, close to 75%-80% of sales are either through financing, or even down payments are made mostly by cheques -so this segment could face less heat. As for tractors, close to 65% of the purchases are financed, therefore the impact of cash squeeze could be minimal
Cement
Companies and dealers are indicating that volumes may get impacted in the near-term as real estate demand (which is 55-60% of overall demand), especially in tier 2 and 3 cities, may get affected in the interim. Demand in tier-1 cities has been weak for the past 2-3 years. But infrastructure demand, backed by government spending which has been driving growth, is unlikely to be impacted.
Banks
The move towards a cashless economy will boost savings in financial assets. With any sharp infusion of deposits and relatively limited avenues to lend, the credit deposit ratio for banks would become unfavorable, and thus impact margins. In case of a spike in capital adequacy, it would be positive for margins. While in the event of a higher rise in deposits, the immediate avenue to deploy would be G-Secs, and this could create a temporary downward blip in bond yields. Thus some of banks could see windfall gains on treasury.

Impact on black money
Only a small portion of black money is actually stored in the form of cash. Usually, black income is kept in the form of physical assets like gold, land, buildings etc. Hence the amount of black money countered by demonetization depends upon the amount of black money held in the form of cash and it will be smaller than expected. But more than anything else, demonetization has a big propaganda effect. People are now much convinced about the need to fight black income. Such a nationwide awareness and urge will encourage government to come out with even strong measures.


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Re: "Do good intentions matter if they lead to bad outcomes."

Post by vishal.sawlani on Mon Nov 28, 2016 6:38 pm

Good governance with good intentions is the hallmark of our government.
Implementation with integrity is our core passion - Narendra Modi


This statement by Mr.Modi Says it all about the Gigantic step he & his govt. has taken to stop Corruption and black money in the nation.

Mr.Modi went on air on 8th Nov 2016 8P.M adressing the whole nation about the discontinuation of the exisiting 500&1000rs notes in the market & declaring them a piece of paper from midnight onwards.
With this news being telecasted on all news channels whole nation was in a state dilemma how to react - Shock ,happy , sad or anything else. As a result this was ,is &will be the most talked matter in coming 1-2 Years.This news was so big that people forgot about the U.S Presidential Elections which is the most imp. Electoral process in the world.
Now talking about
D.E.M.O.N.E.T.I.Z.A.T.I.O.N- It is all about retiring/removing the old currency from the market & introducing new one in place of it.
Modi's govt took this bold step to ban 500&1000rs notes &issue new 500rs 2000rs in market. The government claimed that the demonetisation was an effort to stop productuon of fake copies the current banknotes used for funding terrorism, as well as to put a full stop on black money in the country.
This decision was welcomed by the people in huge numbers & were confident that this revolutionary step will change the Nation to a Newer India which will be corruption free nation.

But in came problems beacause of the Availability of Currency. The Reserve Bank of India laid down a detailed procedure for the exchange of the demonetised banknotes which was listed as :-

1.30th December 2016 is the last date for all the citizens exchange their old banknotes at any office of the RBI or any bank branch and get their amount deposited into their respective bank accounts.
2.Cash withdrawals from bank accounts were restricted to ₹10,000 per day and ₹20,000 per week per account from 10 to 13 November 2016.This limit was increased to ₹24,000 per week from 14 November.
3.For immediate cash needs, the old banknotes can be exchanged for the new ₹500 and ₹2000 banknotes as well as ₹100 banknotes from the bank counters.

All these regulations were up to the mark but the main problem was the supply of new currency. When the Banks opened on 10th Nov 2016 there was a enormous line of people who were upto exchange their old currency with new currency .The spirit & zeel was to be seen in people as they were very excited for this procedure but this was not to be happened. Majority of the people had to go empty handed as banks fell short of the new currency to meet the demands of millions of people in the queues.
This was a common practice over the coming days & still is there.
ATMs were & are running out of cash after a few hours of being functional, and around half the ATMs in the country were non-functional.Even today their a long lines outiside atm to withdraw money.
Main problems for Atm queues are that only a few Atm's were upgraded to be functional towards the new currency as the Holding racks & the softwares had to be upgraded.This mainly took place at Public Bank Atm's like Sbi,BoB,Sbbj.So, as a result their were huge lines outiside these atms and people had to wait hours to get their hands on money.
I also had to wait nearly 2.5 hours to for my turn to come. While in line i noticed that people were carrying 4 -5 Atm cards to Eject their money & when i had word with a person who was carrying 3 Cards , he stated that beacuse the limit of withdrawal is mere 2500 & this amount is not sufficient to meet day to day expenses &they were tired of not getting their money exchanged at bank queues.So this is the only option they ate left with to get thier money so 3-4 Cards are must to atleast get 10000 at a time.
Now beacuse of long queues several people were reported to have died from standing in queues for hours to exchange their old banknotes.These numbers are to increase if the Availability of cash does not increase.
Now one more problem is that the 2000rs note is to big in terms of Exchange as Retailers do not accpet 2000rs note for mere 200 300rs change as they have the problem of giving the consumer change.This was the point i focused upon when i was called upon to speak about the topic in college session in auditorium & i was amused to see my prediction was spot on as most people are facing the problem of change with 2000rs.

Now talking about the effects/Impacts on diff sectors
Transport :-
After the demonetisation was announced, about 8,00,000 truck drivers were affected with scarcity of cash, with around 4,00,000 trucks were stuck at major highways across India were reported.Nitin Gadkari, the Minister of Transport, with immidiate effect announced a suspension of toll collections on all national highways across India until midnight of 11 November, later extended until 14 November and again until midnight of 18 November, and yet again till 2 December.
Banking :-
In the first four days after the announcement of the step, about 3 trillion rupees in the form of old ₹500 and ₹1000 banknotes had been deposited in the banking system and about 500 billion rupees had been dispensed via withdrawals from bank accounts, ATMs as well as exchanges over the bank counters.
Business:-
By the second week after demonetisation of ₹500 and ₹1000 banknotes, cigarette sales across India witnessed a fall of 30–40%.
The demand for point of sales (POS) or card swipe machines has increased. E-payment options like PayTM and PayUMoney has also seen a rise.According to data of Pine Labs, the demand for its POS machines doubled after the decision. Further stating debit card transactions rose by 108% and credit card transactions by 60% on 9 November 2016.
Most Importanlty GDP :-
Rookmaaker a famous economist listed out several macroeconomic effects of decommissioning the old Rs 500 and Rs 1,000 notes, including "a temporary delay of consumption and investment, disrupted supply chains, farmers being unable to buy inputs, and some loss in productivity due to time lost to deal with cash issues," he said.

The impact on GDP growth is clearly going to be negative in the short run and depends to a large extent on how long the cash crunch is going to take.

One Clear effect that csn be ssen that the terrorist attacks in J&k have reduced drastically in 15 days. So 1 of the main reasons of Demonetization has been accomplished as no money is available for Weapons.

Now my verdict that i can make with my preset knowledge would be that this Step by Modi was just like Playing Chess & with only 1 move you check-mate the others. Black money players would now not able to collect black as various impositions are there & still if they collect it's going to have a long time to collect money as exchange & withdrawl have limits imposed.
People will face problem for 50 days but after 50days it is going to be a New India in New India this what Mr.Modi said in his Speech in Goa . He Requested Nation to be with him for 50 days & became emotional during his speech.
According to my sayings 8th November Should have very special place in the books of history as we witnessed one of the most boldest moves in the world econmic History .

In the End I would Conclude by saying Together we Stand, Together we will Fight &Together we will Stand for Modi ji so that his Good Intentions for India get Converted into good & Improved India !!!!



Last edited by vishal.sawlani on Mon Nov 28, 2016 11:18 pm; edited 1 time in total

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by manish rajpal on Mon Nov 28, 2016 7:23 pm

Different ethical intuitions place different weight on the importance of intentions vs. outcomes in evaluating our actions. One might think that consequentialists would favor the outcome-based approach, and indeed, judging based on outcomes is sometimes the best way to optimize performance.
Demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit. In economics demonetization is one of the tool to curb counterfeit and black money. Demonetization is an excellent tool to curb counterfeit money
Did it work
Not in entirety, say economists, because high denomination notes returned eventually. And, such notes, as we know are the basis of corruption and illicit deals related to unaccounted money. The Rs 500 note was introduced in October 1987 and Rs 1,000 note was introduced in November 2000. The move was then justified as attempt to contain the volume of banknotes in circulation due to inflation. But in current scenario Rs 2000 notes has been introduced even before 500 and 1000 rs notes have been drained out completely.
In India black money is created by two means.
1. By tax evasion
2. Corruption
Tax evasion by the businessman. The businessman can again be classified in two categories. Small and average normal businessman and big corporates. Both of them evade tax due to wrong policies of the government. The small businessman are at the receiving end. The big corporates are generally friends of political parties and mostly are involved in funding of elections. The tax evasion can be stopped by using the technology at the right place. With the new Income tax software in place and linking of Adhaar card and Pan card with all the bank accounts can easily curb it but obvious with the political will.
Corruption by the government officials (politicians and beuracrates) is the biggest source of black money. Till the government takes any tough steps to stop the corruption, the generation of black money cannot be controlled; to stop it is a day dream.
THE COST OF CURBING COUNTERFEIT MONEY
Replacing all the Rs. 500 and Rs. 1,000 denomination notes with other denominations, as ordered by the government, could cost the Reserve Bank of India at least Rs. 12,000 crore, based on the number of notes in circulation and the cost incurred in printing them. It includes the new prining cost as well as old currency cost which will be destroyed (source thehindu). This is just the printing cost. To add on will be the transportation cost and social cost. Social cost is the inconvenience to the common people, bank employees, transport employees etc. It is the intangible cost which cannot be quantified.
Is it sensible public policy to flush ₹12,000 crore down the drain to purportedly remove about ₹400 crore of fake currency.


PROBLEMS IN IMPLEMENTATION AND PAIN OF COMMON MAN
• The common man, who are illiterate and have no access to banking facilities, will be the ones to be hit by such steps.
• Most of the country’s ATMs are not built to accommodate the new ₹2,000 and 500 notes. Thousands of engineers are working as fast as possible to retrofit the country’s 2.18 lakh ATMs. This enormous undertaking is expected to take a few more weeks.
Effects of demonetization
• Similarly small kirana shops sell has dropped to 10% in absence of legal currency.
• Products of non essential commodities have fallen and essential commodities are increasing. In two days the price of wheat has increased by 18%
• The price of agro products for next cycle will increase because farmers in absence of legal cash have missed the harvest season. Instead of using seeds they are using grains which will also result in poor yield.
WHY TO DOUBT THE EXECUTION CAPABILITY OF GOVERNMENT
• The first promise to bring black money from swiss bank has failed.
• The second promise to deposit 15 lakh rupees in individuals account has failed
• The promise to strengthen rupee against dollar has failed.
• The promise to curb inflation has failed. The price of pulses, vegetables and other food items has increased by nearly 50% in last two years.
• The crude oil prices has decreased in the international market but the petrol and diesel prices in India has increased in last two years.(source RBI Annual Report 2015-16)
ALTERNATE PATH
Since only 6% of the total cash is in form of black money, and counterfeit currency is .025% of our total GDP demonetization does not help. Instead the following steps would have
• Like Australia released the world’s first long lasting and counterfeit-resistant polymer (plastic) banknotes the government should have waited for some time and adopted the same technique.
• To remove counterfiet currency the old currency can be drained out of main economy slowly without affecting common man.
• To curb black money
• Strike on top 25 black money hoarders names (From Panama Paper Leaks, HSBC List, Leichtensttein Banks) to get back 99.9% of the Black money.
• Strike on benami property papers.
• The another bold decision governemnt can take is Like America did in 1933. From 1933 to 1974, when the government banned most private ownership of gold bullion, including gold coins held for non-numismatic. Only ladies can have ornamental gold capped by upper limit.
• We for sure know which administrative post is the seat of corruption. Raid all the officers of such post. Maximum black momey in form cash lies with them. Dont we know which all departments are centres of corruption. Start from India’s Top 50 Cities
• Approve RTI on campaign funds for elections.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Harshita Sharma on Mon Nov 28, 2016 11:32 pm

One of the standard definition says that, “Demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit”.
In current Indian scenario, our honourable Prime Minister Mr. Narendra Modi has announced that Rs.500 & Rs.1000 notes have been banned and will be replaced by new notes of Rs.500 & Rs.2000. This step was taken, in order to fight the following :-
• Black Money
• Terrorism
• Corruption
• Monopoly of the powerful
Although as admirable this step is, it’s not easy to appreciate it completely.
The statement "Do good intentions matter if they lead to bad outcomes.", doesn’t justify the current demonetization scenario completely as this financial change is still at the very beginning stage, and India has certain aspects, which are making it difficult to work with, those are :-
• A very large country
• Second highest population
• A democracy with large number of parties, trying to weigh each other down for personal agendas
• Most of the population still poverty stricken
• Most of its population living in rural areas
• Most of the people don’t have bank accounts
• Most of the transactions are still cash based
Although the people of India have been given sufficient time of about 50 days to get money exchanged under certain rules and regulation, certain mismanagements are bound to happen with above points in mind.
The people have got a bitter sour experience out of this and impacts have been certainly huge, they are :-
• Long queues, make it tiresome and wastes a lot of time of working class
• There has been a little shortage of cash
• Business have gone down, they are going through a dry spell
• Bank interests rate will go down and loaning will become a little easier
• Real estate, where most of the transactions happen trough cash, many a times in “Black Money”, are having trouble making deals
• Real estate prices are going down
• Gold has seen a positive side of this sudden change, as people, in order to make their black money useful are buying gold and other valuables
• “Kashmir Riots”, have taken a hit as less news of violence in the valley is visible on the news channels
• Crime rate has gone down, as money that was one of the direct and indirect reasons has become worthless
• Plastic money is seeing a sunrise on its window as it has become more useful to the people these days
• E-Wallets apps and companies are having quite a busy time these days
• Being a wedding season, it has become a more difficult time for the families about to celebrate
• Notes are found torn and washed on the banks of water bodies
• NGOs and Temples are finding themselves surrounded by a lot of willing donors
• Most of the problems are being faced by small business owners as they keep cash for daily, quick transactions


The decision was right, keeping various aspects in mind, but was abruptly executed.
Even then it will be wrong to say, "Do good intentions matter if they lead to bad outcomes.", instead we should focus on long term effects and then react over this.










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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Nikita Garg on Mon Nov 28, 2016 11:44 pm

In my opinion,What matters more and is appreciated more is to take a step towards the betterment of oneself and society. Now, whether the step will have a positive or negative outcome depends upon the unforseen future. But not trying because of the fear of failure is the actual loss.
Now firstly What is demonitization?
The simple meaning of demonitization is withdrawl of a particular form of currency from circulation or a process of removing a currency from general usage. Demonitization is necessary whenever there is a need of change of national currency. The old unit of currency is replaced with a new currency unit.
A recent example of demonitization in foreign countries occured when the Europian monetary union adopted the euro.
In this context,our honourable Prime minister Mr. Narendra Modi has announced that the currency of 500 will be remonitized and 1,000 will be discontinued from 8 November 2016 midnight.
The objective behind demonitization is to account the flow of black money in the nation and to use this money for the betterment of the nation.

The major impacts of demonitization are:

1. Demonitization affects the economy through the liquidity side. After the ban of old currency, people are short of cash. They don't have money in their hands. This created a hurdle for the common people to make daily transactions.

2. Demonitization afeects the rural population more because they are in a habit of dealing in paper currency and don,t have knowledge of using plastic money or paytm etc.

3. Also there will be welfare loss for the labourers, daily wage earners or for the people who transact in cash. These sectors will loose income in the absence of liquid cash.

4. Corporate tax rate would fall from 35% to 25% and indivisual tax rate from 30% to 20% by March 2019.

5. Overall tax compliance and collection will jump by 40-50% as tax base and depth both will widen.

6. The circulation of counterfiet money will come to an end.

7. Increasement in the amount of unaccounted money because it will be easier tohide money in large denomination.

8. General people is facing problem in the process of exchange of currency as they have to wait in a long queue to get their own money exchanged.

9. Big boost for stock and commodity market.

10. GDP expected to jump by 30-40% in next 18 months.

11. Growth rate of the economy will touch approx. 12% p.a. by March 2018.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by salonimaheshwari31 on Tue Nov 29, 2016 12:52 pm

My thoughts -
If we think about plain vanilla sentence, then yes good intentions will not be sufficient enough to justify actions if they lead to bad outcomes. It will show that actions implemented without giving proper thought about the implications.
Another important thing to notice is that how we define the outcomes - for example if you are learning Judo then you will feel lot of pain in initial days, may be injuries also. if I ask you to define outcome of Teacher's action, Ans will be big n bold BAD. But is this answer reliable? No, as it has not captured the complete picture. As you know after some initial days or months pain will not be there rather you will be more stronger. Now in the same example assume teacher is bad he don't know how to teach then it is possible that you may get injuries with life time pain. Hence Teacher's intentions although good to make you stronger but since not well directed through his teaching becomes irrelevant.

Now applying the though process in Demonetization scenario -
First what should be thought process of good leader -
in Charlie's word  " from a leader's perspective, it's more important to have the right systems with the right incentives in place, rather than trying to be fair to one person - even if that person is the leader or someone close to the leader.(in this case BJP party itself)
The logic is that leaders must look at such situations from their civilization's point of view rather than the viewpoint of an individual. If we create systems which encourage embezzlement, or tolerate such systems, we'll ruin our civilization. If we don't punish the person, the idea that it’s ok to do embezzlement / or Gov machinery is weak, will spread because of incentive effects, and social proof (everyone's doing it so it’s ok). And we cannot let that idea spread because that will ruin our civilization.
In our system the idea to play with system in expectation that it will not react forcefully was getting stronger as you know merely 1.3 crore people were paying taxes and around 5 cr individuals were filing return till FY 13. (Only individuals data). - implications :- encouraging more and more people to escape the taxation system.
Similarly many other bad practices also flourishing such as human trafficking, drugs, terrorism, naxalism, maaowad etc.
 
In current context  intentions were clear - to encourage people to come under formal economy by paying proper taxes, discourage terrorism, naxal activity, bringing more independence to less powerful and poor labors / farmers who were exploited by employers / traders. (How? -  wage registered 500, but paid only 400 in cash or say wage given 500 but someone powerful mediator takes illegal commission of Rs 100), encouraging people to reach to formal banking system as they were exploited by local credit systems by way of exorbitant interest rates or bad and informal practices.
Now coming to outcomes –
Now a days we can observe difficulty in lives of many people. some labors will temporarily lost the job, some will be paid late wages, most of the people standing in line for 4-6 hours. (Probably you are lucky one, that you are only observing the pain and not experiencing it). Hence at this point if I ask what you think about outcome - Ans will be BAD. but remember my Judo example. “The short-run costs are unfolding, but the long-run effects on India may well prove more than worth them, but it is very hard to know for sure at this stage.”
What are some long run effects -
More people will pay taxes - increase in Gov revenue = we will have better infra and opportunities
many labors / farmers will now access banking and will get payment in their account, hence no middle man will be able to take cut  just like gas subsidy. for example - 21 lac jute and tea labors in Aasam got their wages in bank account this time.
setback to terrorism etc
and these are just examples, impacts of benefits if achieved will be much wider and larger.
many people are saying 50 - 60 people died, well I would say we should consume news very cautiously, as it makes wrong risk maps in our heads - in news terrorism is overrated. Chronic stress is underrated and here also heart attack is overrated then poor lifestyle. Deaths while changing cash overrated then deaths due to abuse of labors/farmers/women/children in informal economy.
The implementation certainly could have been better. but we need to look scale, complexity and secrecy it required. However despite that RBI and Gov are quickly learning on the job and have been open to suggestions.
Well now you can say what is teacher in this case PM or Gov comes out not competent enough and making the impact as lifetime pain?
If we look at record of our PM as Gujrat is says that he knows his job, further his last two and half years as PM also shows that he is taking steps in right direction and now larger share of Gov efforts is reaching out to public, for example Jan dhan account, National agriculture market, gas subsidy, swach bharat etc.
Hence if we look at the question that Do good intentions matter if they lead to bad outcomes? then it would be a hurried response to name the demonetization as bad without waiting for it's complete outcome.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by kajol singh on Thu Dec 01, 2016 10:56 pm

It depends on you. Good or bad outcome, you must live with the truth of your intention. Most people, I suspect, feel much better about things turning out well in spite of beginning with bad, less than good, or even harmful intentions and plans. And, less so when things don't sort themselves out so well. Getting caught or not getting caught is less important than being able to be truthful with ourselves. Bad intensions are bad thoughts, which are on a very low frequency and can cause harm to you in any ways. It is simply the 3rd Newton law of equal and opposite force. Bad intensions will cause bad circumstances and you have to change your intensions to good to experience good outcome.Bad intentions are already an action of sorts - a mental action.

It is even more than a single action - there are many negative thoughts behind any single bad intention, really. Thus, it has, or they have, many fruits, not one, single outcome. It will continue bare fruits until the negative thoughts and their respective outcomes with exhaust themselves. Be grateful if there was a good outcome to something you did with a negative intention: you felt relieved, i assume? If you have, it's because you recognized the fault in the negative intention. It's lesson and a door out of a loop you were probably in...

Your intentions bad or good don't matter at all to other people, except in legal fiction. They do, however matter to you. Acting with malice is, well, it's malicious. If the outcome was good you got lucky. People didn't catch you out. But you did. You caught yourself. That's why your asking this question. You won't get absolution here, though. That's for you to work out. Feel better some, that you paused and reflected. If you were a sociopath, you wouldn't have bothered.

Now, the rationalization. "If it leads to a good outcome." Every single action has an infinity of outcomes. I love M&M's. They're great candy. A great outcome of the U.S. Army's desire to get chocolate to GI's in the Pacific theater in WWII, in a way that it wouldn't be a melted sticky mess before it got to them. If it meant doing without them, I'd pass on Iwojima. It's a silly, extreme example, but you get the idea.

The result is important in the objective world. Your intent is important to how you feel about yourself.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Ritika on Thu Dec 01, 2016 11:28 pm

In my point of view good intention is important.One meaning of the phrase is that individuals may have the intention to undertake good actions but nevertheless fail to take action. This inaction may be due to procrastination, laziness or other subversive vice. As such, the saying is an admonishment that a good intention is meaningless unless followed through.

A different interpretation of the saying is wrongdoings or evil actions are often masked by good intentions, or even that good intentions, when acted upon, may have unforeseen bad consequences.Attempts to improve the ethical behavior of groups are often counter-productive. If legislation is used then people will observe the letter of the law rather than improving the desired behavior. During negotiation, groups that are encouraged to understand the point of view of the other parties do worse than those whose perspective is not enlightened. The threat of punishment may worsen ethical behavior rather than improve it. Studies of business ethics indicate that most wrongdoing is not due directly to wickedness but is performed by people who did not plan.I have a low tolerance for people who complain about things but never do anything to change them. This led me to conclude that the single largest pool of untapped natural resources in this world is human good intentions that are never translated into actions.Early in life I learned, just through observation, that right always wins out over wrong. If a person has good intentions in his heart and wants to do the right thing, then there are certain ways that any obstacle can be overcome.
I think I'll be going to Heaven, because I had good intentions. But my actions are another thing.

''In general, I think the world is a good place if you work hard, believe in yourself, have good intentions, and if you are kind to people, I believe that good things happen to you.''

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Demonetizing

Post by PGFA1658 on Fri Dec 02, 2016 3:14 pm

Demonetization is a serious step taken by our PM Mr Narendra Modi on 8 november 2016 at midnight live.Its a process of removing or banning currency notes of particular denominations in order to remove corruption and black money kept by people.This serious step was taken by our PM is now suffering normal category people.Infact they are facing problems in exchanging their old currency notes in order have new currency notes.But there are few people who are against this decision and it simply means that they are having black money.
Recent news came that a huge amount of rs 500 notes was drained by the people.And this clearly shows that they were having black money.This step was taken with a good intention but it in turn was having a bad impact on farmers,lower income people and other class people too.Effect of this was serious in our indian economy and market.Due to this every sector of business was affected a lot.There was a major stess in indian agriculture.
Cash deposits which were above rs 500 and rs 1000 may attract tax authorities to extract 50% of tax according to Income Tax Act approved by Cabinet and 25% of the original deposits will not be allowable to withdraw for 4 years.And if these deposits are not detected then 90%of tax would be charged for these people.Our government have also given a facility of exchanging old currency within 50 days with effect from 10 november.
Impacts of demonetization are as follows-
1.Removal of black money stored in form of rs 500 and rs 1000.
2.Chaos and confusion in banks and public is suffering a lot.
3.Public are moving towards digital payments.
4.Political parties are donating a huge denominations for their elections.
5.Terror funding were dismantled.
6.Resale of real estate.
Hence we can say that demonetizing is troubling each and every field of business and people's life as well.Even old people are standind in long queues.Indian passengers are mostly affected.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by kaushalsoni139 on Sun Dec 04, 2016 6:39 pm

"Do good intentions matter if they lead to bad outcomes.".....
Yes,intentions do matter whether they leads to good impact or bad impact...Like demonetization.the one of the powerful step taken by our PM (Mr. Narendra modi).After the announcement of this news by our PM worldwide,every body got shocked and got confused that why to take this step on this time.Every body knows that our PM is very great "Economist" and also we knows that he is doing something to eradicate black market but no body knows that he will take this step. Although i know he had done too much study before taking this step and also he took this with positive motive.
Now Coming to the troubles that people are facing because of this step.But it will be good to first understand the meaning of this pom pus word demonetization...So
Demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.
thus in simple words it means retirement of old currency.

Now it will be easy for us to rethink on the troubles and its impact on our economy and our day to day life.so the followings are the points which will tells us about all those troubles which we all have experienced :
1.Each and every person either poor or the rich ones have experienced the shortage of money in hand.
2.The great trouble caused to those people who have some kind of occasion at their home like wedding..Yes,we all have to arrange huge amount of money on wedding but what will happen if that all money become demonetized...
3.farmers also experienced great trouble because they were not able to purchase seeds and also were not able to sell their stock .
these are some of the trouble which we will not forget...We all knows that there is some good thinking behind this step and in spit we experienced too much difficulty.But we should admit that it is a great attempt to remove black money from the economy.and it is quite obvious that to cure some disease we must take injections which hurts us.so for me this step is like an injection which will have for sometime negative impact but after that we will have good time also..
So followings are the points which explains us about demonetization's impacts:-
A.) NEGATIVE:-
i.)Automobile industry:Two wheeler sales in rural areas went down , in some cases. as much as 70% in some parts. RTO revenues came to a small fraction of previous transactions.
ii.)Stock Market: With the effect of demonetization, i.e. almost no liquidity the purchases had gone down which cost the stock market with a loss of 1300 points as all of the investors are withdrawing their money back.
iii.)tourism sector: Domestic tourists also faced problems.lack of money will make this sector unprofitable.

B.)POSITIVE:-
i.)For general public:it will help us in a very drastic way in the coming time because there will be more money in banks and they will provides loan to general public at cheaper rates which is helpful for all of us.
ii.)Improve disposable income: it will leads to deflation or we will get things at cheaper rates so our disposable income will rise.
iii.)Eradicate black money:as we can see all the black money got wasted.so it will helps us in the coming times.

CONCLUSION:-
thus we can say that it is a great move by our PM.And as i mentioned that it is like an injection to our economy as it will hurt us first then it will show its positive effects to us.


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Re: "Do good intentions matter if they lead to bad outcomes."

Post by alka yadav on Thu Dec 08, 2016 1:09 pm

According to me its intention what matters not the outcomes because if the outcome is bad that is only for shorter period of time because behind that there is good intentions.
As nowadays we are facing demonetisation due to which every one is facing problem but as we know this is only short term problem.
This decision is taken by Mr. Narendra Modi our own prime minister to bring the black money in market on which the rich people are taking hold.Due to this decision there is there is negative effect on economy but after some time it will back to normal and not only normal but also increase. The major impact is on real estate business as the property prices will go down.
But whatever the matter is I agree that if the intentions are good then doesn't matter what are the outcomes.

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Re: "Do good intentions matter if they lead to bad outcomes."

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