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Collectively, governments have made the decision to print money and rack up debt to bail out the system. And even with all that support, we have 15% unemployment, so governments made the right call. But what happens when unemployment is 10% or 8%? No subsidies. Nasty recession
There's no logical connection between the 1st and 2nd sentences. There are other and better ways to fix unemployment than to make it rain with cash.
I'm not sure. Holding money supply constant would have been akin to keeping the gold standard in the great depression, which is where we were going. When velocity of money falls of a cliff, the only way to balance the system is to inject more supply.
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