Is government intervention necessary in economic crisis?

[deepti1985]

I really think that the need for public intervention is becoming more evident, in the securities market, the housing market or the banking sector -- government intervention would act as a "third line of defence" to support monetary and fiscal policy.

[pahuja.chirag]

your thought came true, government is gonna boost the housing loans, and also it is gonna help automobile industry, as per the today's Times Of India.......................

[deepakraam]

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.

[janish]

yes,, government must let the market forces lead to future....today all govenments are doing privatization of profits and public of losses............its not gud at all

[mansi_rk]

yes... govt intervention is necessary in such a crisis situations. and govt is goin in right dirction by offering Rs. 31000 crore stimulus package and rate cuts. Though experts feel that it is not suffecient, it wil definitely help businessess a little.

-mansi

[Jairo]

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!

[khaitansaket]

sometimes govt intervention is must in this crisis as we can see what us govt has done.....it has bailed out a lot otherwise the pvt bodies would have collasssped

[ashvin_1]

if government will not interfere who will decide the economic policy during crisis.....

[ashvin_1]

yes if government will not interfere then who will decide policy during recession....

[phani_tavvala]

U.S government did not interfere during the 1929 stock market crash and later repented. Since then federal reserve was created to interfere in moments of crisis. But government should not turn capitalism to socialism.