I don't think you're getting it.
The government doesn't have to do anything. To be honest, there's nothing they can do. Giving out more free money would cause prices to go up ever further which would escalate inflation higher. It's best that the government keep out by not meddling with the markets, because you can be sure that whatever they think the solution is would end up making things worse.
Truth is, the issues we see today are in part due to what happened during 2007-08. That would have, and should have been a true recession, but central banks artificially bailed out banks and the financial system with with QE and ultra low interest rates. The western world has pretty much been run on funny money for the past 15 years. Those days have ended, and the only thing left is a very severe recession, if not depression. Unfortunately, a lot of companies are going to go bust. A lot of people are going to lose their jobs. A lot of people are going to get their homes repossessed. It's kind of normal in recessions and a part of the financial cycle.