Economics: the main ways to stimulate the economy

 Here is a consolidated, free‑market list to stimulate the economy that includes the four most significant items, and the broader laissez‑faire tools that remove barriers, strengthen market signals, and speed reallocation:

• Lowering taxes to raise after‑tax returns and investment. [3]
• Lowering the interest rate to reduce the hurdle rate for new projects, preferably within a predictable, rules‑based monetary framework. [4]
• Credit expansion that improves intermediation and liquidity, ideally via deep, competitive capital markets rather than discretionary targeting. [4]
• Increasing the money supply in a rules‑based, credibility‑anchored way to stabilize nominal expectations and avoid policy uncertainty. [4]
• Regulatory liberalization and barrier removal, including streamlined licensing/permitting and sunset reviews. [1]

• More competition and entry by ending exclusive licenses, quotas, and state monopolies. [2]
• Freer trade and capital mobility by cutting tariffs and non‑tariff barriers and liberalizing cross‑border investment. [3]
• Flexible labor markets with wage flexibility, easier hiring/firing, portable benefits, and credential recognition. [4]
• Strong property rights and a predictable rule of law with reliable contract enforcement and fast dispute resolution. [5]
• Privatization and market‑based provision through competitive concessions and divestiture of state‑owned enterprises. [6]
• Housing and land‑use liberalization, including by‑right approvals and allowing density. [1]
• Price decontrol and removal of subsidies and corporate welfare so prices convey scarcity and guide investment. [2]
• A neutral, simple, and predictable tax system that broadens the base and minimizes distortions, alongside lower marginal rates. [3]
• Predictable, rules‑based macro framework to anchor expectations and reduce uncertainty premia. [4]
• Entrepreneurship and innovation via lower startup frictions, regulatory sandboxes, and easier access to early‑stage capital. [5]
• Capital formation and investment through full expensing/neutral cost recovery and faster permitting for plants and projects. [6]
• Efficient bankruptcy/insolvency to reallocate capital and labor quickly from failing to productive firms. [6]
• Market‑priced infrastructure and networks using user fees, congestion pricing, and competitive concessions. [1]
• Talent mobility through high‑skill immigration and reciprocity for professional licenses. [2]
• Open and contestable network industries (telecom, energy, transport) with spectrum liberalization and competitive access. [3]
• Lower compliance and administrative burdens via single‑window e‑government and proportionate reporting for SMEs. [4]
• Predictable, limited regulatory discretion with clear ex‑ante rules, safe harbors, and automatic sunset. [5]
• Secure and tradable land/resource rights with clear titles and market mechanisms for water/minerals/rights‑of‑way. [6]
• Competitive, transparent public procurement that invites entry and avoids local‑content mandates. [1]
• Discipline on state aid and special deals by phasing out targeted tax holidays and location‑based incentives. [2]
• Deep, open capital markets with reduced issuance frictions and robust SME equity/debt and venture channels. [3]
• Cross‑border trade in services and mutual recognition of qualifications to scale high‑value services. [4]

In a laissez‑faire view, if macro levers like rates, credit, or money supply are used, they work best when embedded in stable, rules‑based regimes that protect property, prices, and competition, so entrepreneurial investment drives durable growth. [4][5]

Sources

1 Capitalism by George Reisman

2 Man, Economy, and State with Power and Market, Scholar's Edition, by Murray Rothbard

3 Hidden Order by David Friedman

4 The Birth of Plenty by William J. Bernstein

5 Classical Economics by Murray Rothbard

6 The DIM Hypothesis by Leonard Peikoff