How could God just stand by and watch?

Here is the short answer. We are in the second act of a three act play. In the first the characters have been introduced. In the second comes the tragedy, hunger, cold, killing, decease, all thing experienced by us. Sorrow, weeping, all. Since we have not seen the third act we cannot understand the whole play and its full meaning and purpose. When we do, all will be explained and we will acknowledge the beauty of it. Al will be set right, all will be equalized, all will be reckoned.