What should have happened, and perhaps looking ahead, may be the only effective government response, is a direct work relief program like in the 1930s. Is this politically popular or desirable? Of course not. But it may be the only choice. Cutting taxes haven't helped; it's not exactly clear how reducing a tax burden on an underemployed individual or on a business that has fewer people passing through its doors will employ more people? You may get more hiring of minimum wage retail workers; again, not the type of job creation to get the economy back on a path of prosperity.
Adherents of Adam Smith and Free Marketeers should welcome a bold government move like this since it was outlined in their bible, The Wealth of Nations. Smith promoted the government's maintenance of "good roads and communications," whereby they benefit the whole society.
"...a direct work relief program like in the 1930s. Is this politically popular or desirable? Of course not." Hogwash! It is highly desirable and very doable.
Just go to United States Notes and remove the National Debt nearly immediately, as I've been advocating for years now -- first person I knew of advocating that. Everyone else I knew of was advocating a slow phasing-in. I'm glad so many people have joined me.
Something else we need in monetary reform is a national Monetary Authority that is a publicly owned computer running open source developed software regulating the volume of currency in real-time factoring in the velocity of circulation too.
All of that would be on the road to a moneyless humanity, which we definitely need! Mammon was a really, really stupid idea for humanity. Trading holding out for recompense was an extremely wicked idea that needs to be abolished forever! Humanity needs to be grounded upon a consensus on what is best for all and each. Capitalism is far, far, far from that. It was an evil anti-family-of-humanity invention -- hardhearted.