Some Political and Social Perspective From Far Far Away

Last week the Indian Prime Minister Modi gave 4 hours notice, late in the evening, that he was demonetizing the most used currency in the country, 1000 and 500 rupee notes. This meant these notes would be accepted for 4 more hours, then would be worthless, just paper. Then he closed the banks for a day and the ATMs for 2 days.  This is a little like having no currency higher than a $5 bill in the US, but then make it so hardly anyplace anywhere takes credit cards, and most things cost at least 100 rupees.

Since then, the banks and ATMs have run out of money-there are not enough 100, 50, 20, or 10 rupee notes in circulation. They say they keep replenishing the banks and some ATMs, but it's now hard enough to get cash that police presence is required at banks to keep violence at bay. The newspaper says 500,000 people have been able to get money from the bank.  500,000 out of a population of 1.3 billion.

India runs largely on a cash economy.  Probably 95% of the poor, lower and lower middle classes’ spending and earning is in cash.  For the middle, upper and wealthiest classes, probably 70% of their spending is in cash, often more.  So think about this, and then take away the cash.  The fruit and vegetable vendors, the street markets, the street food, the small local shops that line the streets everywhere, they work on cash.  If they’re not getting cash from people buying their wares, how can they spend?  It’s a very hard situation, one that will hurt the poor far more than the wealthy.  As a "wealthy" expat, I am OK because I can shop at the few shops that accept credit cards, including some expat grocery stores. I have to spend 3-20 times what I would buying from local vendors with cash, but I can do it.  It’s an option for me.

I currently have 2000 rupees in spendable cash. This is about $28. So today we'd like to go out, but we don't have a driver on Sundays so we have to take an Uber or taxi. Cash only. Chris has to go to the airport to travel today, another Uber or taxi. Cash only.  If we go out to the brunch we were invited to, we're probably are down to 1100 rupees. I feel like I have to make my 2000 last until we can get money, but I don't think it will. And here is why.

I have a new driver, Sushil. He's young and speaks English pretty well, and he is lovely. He is kind and so clearly a good person.  He is all alone here in Pune.  His family lives in his village where they are sugarcane and wheat farmers.  His two older siblings are married and live far away.  If we paid him, we could offer him an advance.  But we don't pay him, he is paid through the car company. And this week, while he has money in the bank and had his last paycheck from the Marriott, he had no money for food. He wanted me to give him food, not money. But I didn't have his kind of food, so finally he was willing to take 200 rupees on loan for food (he wouldn't take it if it wasn't a loan). But that won't last him long. So last night we had our housekeeper, Dinesh, make extra food so we could send food home with him. But I feel responsible for him, and may have to give him more of my last cash to take care of him. I need to do this.

Then there is Dinesh. He is our new housekeeper. He is lovely and married with two kids, one of whom Gracie plays with every day. We do pay him. And if things don’t clear up soon, we won't have the money to pay him. Luckily, he's not due to be paid until the first. I need to be sure his needs are being met.

Then there is Balu, our wonderful caretaker, who lives in a tiny house (a room) behind our garage.  He has a wife and baby.  So far he has assured me that all the people he buys food from have said, "You pay me later." But if this takes weeks, will they be able to keep saying that? And if it continues for weeks, how will we pay him? I need to be sure his needs are met.

Keep in mind when you read this, that here in India we need money for clean water. Everyone does.  The municiple water, that is available for a couple hours a day for most people, is not clean.  You cannot drink it without risking serious illness or death.  So everyone has to buy water.  And most of those places where you get drinking water take only cash.  So no matter how you look at it, if you have no cash, you have no clean water.  Imagine the possibility of 1.3 billion people struggling to get water to drink.

Yesterday, Sushil waited in line to deposit his check and get cash from 9 am to 4 pm.  And when he finally got forward in the line, they would not take his check for cash.  So he waited all day to get money and came away empty handed.  Balu happened to see him in line, and saw his despair.  Balu had been able to get 2000 rupees in cash, also waiting all day, and he gave Sushil 1000.  2000 rupees is about 1/6^th of Balu’s monthly salary-and he happily gave half of it to a man he has known for 4 days.  This is kindness.  This is trust.  This is what we should all strive for. 

So my US friends, no matter who you voted for, it could be so much worse. The amazing thing here is we have 1.3 billion people with no access to money, and, for the most part, kindness is ruling, everywhere.