Was the government secretly giving us free money?

This theory popped up in my head while I was high. I don't know if this is even technically, logically or factually correct. I don't claim so too. It was just something I felt. And it felt intriguing feeling such a detailed theory. So I'm sharing it below. ☺️

Let's go back to 2016, when demonetization happened in India. But before that, remember the rise of Jio? Suddenly, internet became super cheap, and India became one of the countries with the lowest internet prices. Now, even people from the poorest backgrounds had access to information from across the world. The potential of this information was enormous.

Now, back to demonetization. After that, people started switching to digital transactions, and suddenly, most of the money in circulation was digital—more zeros and ones than paper.

It's easier for someone born into a wealthy environment to stay rich. Those who are middle class or above enjoy the comforts and privileges they already have. But what if people were given a little more money upfront? It could increase their chances of improving their standard of living. However, if this "extra money" was just handed out for free, people would likely spend it all and cause inflation.

So, instead of simply giving people free money, the government found a more subtle way to introduce more money into the economy—through digital transactions. After demonetization, as most transactions moved online, it became easier to do this discreetly.

Something else happened during this digital shift: the rise of credit. Before, only the upper middle class really used credit services. But suddenly, everything—from pens to cars—was available with zero-interest EMIs. Loan apps popped up everywhere, allowing anyone to get a large sum of money within minutes. This made even luxury items, like iPhones, accessible to people who were previously excluded.

By introducing credit, the government subtly pumped more money into the economy. It wasn’t just free money—it was either stagnant black money, new money, or a combination of both. People who were previously unable to access certain luxuries could now enjoy them. This, in turn, encouraged companies to invest more in India, knowing there was demand. More investment meant more jobs, which helped improve living standards. It created a self-sustaining loop, similar to how people born into better circumstances tend to stay in better circumstances.

Here are a few examples. A person can now buy an iPhone with small monthly payments—interest-free. They could use that phone to create content, which might help them earn money. Or, someone who took a loan for dining out or traveling starts living a higher standard of life, which makes it hard to go back. This might push them to find ways to sustain this better lifestyle—whether it's by getting a job, improving their skills, or even starting a business.

It's much easier for people to pay small amounts over time than to come up with a large sum all at once. If you asked a random person for ₹1 lakh, they probably wouldn’t have it. But if you asked them to pay ₹4,000 per month for two years, most would find a way to make it work.

In conclusion, the situation isn’t as simple as “free money.” It’s more about smart, subtle mechanisms that allowed people to experience the benefits of increased spending power, without immediately triggering the negative side effects of inflation. But they did it cleverly, without causing inflation. The way this money was introduced had rippling effects that helped the economy grow.

Or were it all not planned or orchestrated by the government or anyone else and the events of rise of jio and cheap internet, demonetization, digital transactions, rise of credit and loan apps were all just coincidences or just random things that happened.