Is government intervention necessary in economic crisis?

govt intervention is necesary but it should be controlled specialyy keeping in mind the monetary and fiscal policy.
the bail outs to the specifgic industries must be carefull
 
Current crisis in India is mainly due to the negative mood of the people.Ppl are not willing to spend money.They have become spend-thrift.This is good in one aspect but bad in an economic aspect because the money flow in the market will come down drastically.The country will grow only if there is money flow in the market with a proper check on inflation.In 2007,Ppl were ready to spend money in malls so there was enough cash flow in the market.But as the crisis started ppl are not ready to spend the money only if it is required.So there is complete drain in money flow in the market which is not a healthy trend.So Govt is doing its best to increase the money flow so that ppl will spend money thereby changing the mood of the hour.This inturn will make the economy to grow.Ofcourse we must keep an eye on inflation.So Govt intervention is required during economic crisis.

-Deepak.
 
The government intervention along with corporate and general public is required for economic crisis as all the 3 know their economy well.
 
In times of Economic crisis the public loses faith on the financial market system, hence government intervention becomes necessary.
 
The government is the ideal interventionist during an eco crises by the mere fact that it has the largest pool of resources that can help steer the economy in the right direction if used in a judicious manner.

Intervention in the form of changes in the rates like the repo/reverse repo/bank rate /int rates etc . will definately have a major imoact on the macroeconomy and help deal with crises.The system of laissez faire is passe and a mixed economy is what saves the show .
 
when the public loses faith in the market it becomes necessary dor the goverment to intervene, to encourage ppl to invest and continue their practices bcoz its the govt. in the end wich saves the day.
 
Economic crisis can be relieved only if the NDA Government comes back to power. This is because NDA has the policy to keep interest rates to a minimum level. This helps in economic growth. Although it leads to inflation, but inflation can be controlled by honest groundwork in foodgrain distribution procedure. Congress has always tried to keep interest rates at the roof to keep the saving population happy in order to earn votes. This hampers growth. So this time again if M Singh becomes PM, we should expect recession for the next 5 years.
 
Yes, it is, as a regulator, as a fund-provider in case of emergencies, for setting directions of future business. In short to keep faith of general public in business and even in government itself, it is.
 
absolutely!! they charge all them tax, and saved it up in the fiscal, now is the time to spread out some, to salvage people, that's what they did in Australia...couple million has been taken out from government, and distribute to people who pays tax, says trying to stimulate the economic...right.
 
of course its important, govt is choosen by us any they are responsible for running the country and economy so there intervention is the must to control current economic crises
 
I believe government should intervene by providing infrastructure, social amenities and other social services that help the citizenry and reduce the pressure on them during recession. The government has the responsibility to see to the wee-being of the citizens. Therefore, if the citizens need their intervention, they should go ahead and render it to them. That's why they were elected in the first place.
 
The country's economy is solely in the hands of governement. They can drive it whereever they want to..so their intervention to take the reverse gear back to moving ahead needs a lot of interventions, measures and people participation for innovative ideas to fight this global battle
 
The government intervention in housing sector, banking and other liquidity based sectors is inevitable. Banks are howling to the central bank for deeper rate cuts. If government does not give help, these sectors can continue to suffer in the future, due to low cash and lower spending. Government stimulus is necessary to improve the market sentiment and also infuse liquidity so that businesses have enough cash for daily consumption and expansion. Government intervention is imperative for the businesses to continue growing.

The government has the cash and resources to get back the economy back on track and they should take all necessary measures to do that.
 
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