CASE STUDY IN ECONOMICS

In Germany in 2009 there was considerable debate about the extent to which the government should be intervening in the economy. For example, its citizens were worried about the future of Opel, a German car brand that was part of the ailing General Motors. Some wanted the government to make sure jobs were saved no matter what. Others, however, were more hesitant and worried about becoming the government becoming too interventionist. Traditionally since the Second World War the German government has seen itself as a referee in market issues and has avoided trying to control parts of the economy. It would regulate anti-competitive behaviour, for example, but not try to run many industries. However in the recession of 2009 when the economy was shrinking the government was forced to spend more to stimulate demand and had to intervene heavily to save the banking sector from collapse. The government also had to offer aid to businesses to keep them alive. 

Questions 

1. What are the possible benefits of a government intervening in an economy? 

2. What are the arguments against government intervention in an economy? 

3. What prompted greater intervention by the German government in 2009? 

4. What would determine whether the German continued to intervene on this scale in the future?

ALOK TIBREWAL MY FRIEND

I think it was in the August of 1991 I was in NEW DELHI to meet the then Minister of State for Agriculture Shri. Mulapally Ramachandran and was in Delhi for around four days and was a memorable experience staying in the Sainik  Aram Garh. I did meet the honorable Minister and the following day stayed at the Rail Yatri Niwas probably for one evening and another room mate joined soon after by name Alok Tibrewal possibly from Jaipur Rajastan.

We became quick friends and even took a stroll around Delhi in the evening and later had to part ways on our own pre-occupations. Alok did give me his address but I  lost it. I tried to find Alok on face-book but could not track him.

Alok if you were ever to read this get in touch with me.

My tryst with Bhoruka Steel

One of the earliest organizations to interview  me was Bhouka Steel Ltd. This was a nice experience and served as a fillip to my second interview at BPL .The entire story is  in August of 1986 and some coincidence of  circumstances.

The name Bhoruka Steel is nothing new to me. It used to be a mini steel plant located at Mahadevapura on White Field road. As a child    I used to ride a bicycle all the way from my home to this factory and back.. Bhoruka Steel used to be a mini steel plant that flourished here from 1970 to around 1995 or so…the years mentioned may not be very accurate but fairly close to facts.

The placement office at REC Calicut put up a notice stating that students of the  Karnataka region need to apply for a post at this Steel company..which I did and was shortlisted for interview.This saw me making an emergency dash to Bangalore…and the date is 14^th of August 1986….and the interview was scheduled on the 16^th of August 1986 at Hitananda Chambers on Lavelle Road. I think I took the KSTDC bus frtom Calicut to Bangalore and Sheela Furtado and her friend was also there in the bus on that day..I did not know where Lavelle road was and my father explained it to me and I found myself at the office on Lavelle road at the stipulated time. I was led into a large conference hall and two gentlemen spoke to me for about half an hour.

This event was special to me as it was the first interview so to say I underwent  and gave me the confidence to get selected by BPL later.

Thank you  Bhoruka  Steel for this opportunity and thank God for all such experiences.

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PVK Mohan My Friend

At  NIT Calicut I has a special friend so to say..PVK Mohan from Mumbai.He was to me in many ways an interesting character.Basically he is a teluguite from Dadar in Mumbai.

PVK Mohan used to be a hefty person and in the third semester Electrical Circuit Theory class got stuck between benches when he tried to move to his place of seating and few benches had to be re-arranged to make way for him.This created humour in the class for a while. If Iam not mistaken he used to often talk of his elder brother Who is an IIT and IIM graduate.

The reason Why I remember PVK Mohan is that in the D hostel his room used to be exactly opposite to that of mine. This means every day I bumped into him and he used to call me PO…POH…what a nice nick-name. This room of PVK mohan later went to Vinod Shetty our junior also from Mumbai.

PVK fat that he was used to be sometimes called as Pressure Volume  Constant. He used to play Table Tennis well with a powerful back-hand.

Later I came to know PVK Mohan had joined IIM Bangalore and specialized in Finance and works for a Multinational.

PVK  where-ever you are I just happened to remember you.

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