Is government intervention necessary in economic crisis?

[amnayeem]

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

[madronny]

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.

[gpuneetg]

The government intervention along with corporate and general public is required for economic crisis as all the 3 know their economy well.

[himehul]

In times of Economic crisis the public loses faith on the financial market system, hence government intervention becomes necessary.

[himehul]

Yes government intervention becomes necessary as public loses faith in the financial system..

[khrith]

government intervention is a must, since governement must initiate investing in more projects.

[samiksha_hi]

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 .

[confused21]

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.

[solutions2k4]

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.

[ashpt33]

yes......................................