The Consequences Of Black Money
Black money is a scourge on society. The presence of rapidly rising black money in our economy has serious and catastrophic consequences. Some of the most notable consequences of black money include: 1. Dual Economic System The rise of black money in India has resulted in the continuance of economic dualism, in which a parallel economy (black money economy) coexists with the official or reported economy of the country. At least one-fifth of all economic transactions take place in the shadow economy. It’s also difficult to tell the difference between black and white money because of the connection between reported and undeclared operations. Such a parallel economy will sabotage the country’s entire economic progress. 2. Belief in something that isn’t true Official national income figures underestimate the true size of the economy and provide an erroneous image of the economy due to the scale of the underground economy and the growth of black income. Estimates of national savings and c