The govt view that these policies are somehow good in the long term, but it will create issues in the short term is not correct. And it is easy to spin doctor this saying, all okay lay in the long term.
Nothing positive will come out of demonetisation disaster and similarly GST. Businesses that got destroyed due to these 2 policies are gone forever and the jobs along with it. Those businesses that could not pay back the bank loans for months have all shut down. They cannot be reopened unless banks give working capital and with banks under massive NPAs, no way to do that.
I am sure you know how hard it is to build a business. So new businesses have to take their place and will take place over long periods of time. That's why the farm sector, real estate, textiles etc.. arenot able to come back up even after 2 yrs of demo.
Many assume that black money is bad, has to be bad, so it is bad. That is not economics but the need to be seen morally right. In economics, there is no white or black money, it simply studies flow of money and how it impacts the overall GDP.
Black money has both pros and cons as any. For eg, let's say, a guy has 100 crores black. Then he will freely invest in lands, houses, stocks, hire car drivers instead of self drive, workers at home, etc.. Let's say his friend or relation wants to start a business and wants 50 lakhs , he will freely give him. What is the risk in losing ill gotten wealth after all. Lol. So he contributes more to the economy, on the other hand the White money guy will not spend any money as it is hard earned and will be very careful, so he actually contributes less to the economy.
That's why the economy was booming during Manmohan era as black money oiled the economy. Now we can debate whether this is okay or not. But remember the people did not vote the govt to make them "harishchandras". Lol
Most importantly even if people had voted, demonetisation was the most negative policy that could have been chosen. There were any number of measures that could have been taken to fight corruption, black money and formalization of the parallel economy.
