"liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate… it will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people."
-Sec. of Treasury Andrew Mellon after 1929 crash.
That was accomplished by raising taxes, the speculators were annihilated, and a firm basis was put in for economic growth.
In Germany Heinrich Brüning's government did the same as was done in America. Taxes were increased massively, the rottenness was purged, and the economy turned on a dime. By the second half of 1932 the economy was growing rapidly, pulling up out of the hole caused by the speculators. The Nazis then came to power - on the back of the women's vote and the Catholic vote mostly - and just took credit for the economic boom that followed. High taxes were retained, and the government leveraged the taxes into new government spending. Germany was at full employment by 1935-1936...
Conservative economic policies do work. What does not work is liberal policies such cutting taxes to fight recessions, borrowing money to fuel the flames of speculation caused by lower taxes, and monetary "easing" to try to foster growth.
The rotteness still remains to be purged. The trillions in bad loans made to housing speculators still remain. The enormous commodity bubble driven up by the latest bout of monetary easing induced speculation still remains to be purged and flushed.