The statists used the same "if the government does nothing the economy is doomed" threat in regard to the depression of 1920.
Harding and Coolidge knew the truth: more government spending and interference would only serve to worsen and prolong the depression. (This was proven in the 1930's).
Little Timmy needs to brush up on the history on the depression of 1920. The Depression in America in 1920 was in some ways bigger in scope and deeper than the Depression of the 1930s. However, it was solved because federal spending was cut in half and income tax rates were cut across the board (the top rate from 73% to 25%, and the bottom rate from 25% to 5%).
The economy not only quickly recovered with the reduction of government spending and tax cuts, but thrived so much that it led to the Roaring '20's.
The government cannot be the solution because it is the problem. It needs to get the h*ll out of the way and begin with cutting taxes and deficit spending. Unfortunately, the leftist politicians and bureaucrats are adhering to the Cloward Piven, FDR, Keynesian and Karl Marx play books. It won't be pretty.
In the 20s, the nation was reaping the benefits of the enormous capital inflow into the then-new electric utilities. That generated huge increases in productivity, raising everybody’s living standard. The same thing happened in the 90s with the Internet.
What’s the next big wave of innovation that will save us? It isn’t obvious this time around.