According to von Mises the Bust is the cure and the Boom the desease.
So the way out is chrystal clear. As long as we try to prolong the boom the harder and harsher the Bust.
Now we have to pinpoint the problems in some logic congruent way. So we know that the states ever have expanded their activities. And this activities are by definition unproductive.
States do not server any customer but themselves. States can not produce anything, because they have no way of calculating (according to Rothbard). So we then have one point where change is needed.
The ever expanding government must be shrinked
Now how could that be achieved? Well as you know the state has a few monopolies themselves and gives grants to other monopolies also. The most urgent problem and most dangerous monopoly is the money monopoly.
A state who can declare what it likes as money and under physical threat to accept this as “money” is THE problem . So the money monopoly has to be taken away from states. (I know the FED in principal is private, but it is established as a monopoly by simple force of the government) So we have to replace money as debt with money as value (as it is meant to be)
This solves another problem, brining money into existence out of thin air. The Fiat- money system is established slavery. And therefor it has to be abondoned. After the monopoly is gone states can not expand their credits as much as the like. They have to pay back in dear things not with some sheet of paper. So we need to abolish the fiat-money currency. If we do that a lot of other things fall into place.
Governments can not make debts that easy as now. So they must limit their activities.
If we have less debt the state does not have to always try to expand their tax base and taxes.
After that we have to ask ourselves. What can states really provide for the well-being of their citizens? We know a) that government can not calculate and b) government can not produce. So what may be the thing a government can provide. well the only think I can see is to guarantee the property rights of anyone living in it’s boundaries. But if this is the only thing they probably can offer then you can see how much money can be spared for other things. We do not need laws which limit the risk for big companies if they are doing things wrong. They must be aware that they have to pay for it. So BP probably would be in big trouble these days. But with government limiting the risk for them they go on as usually. So fact is (unfortunately) the government does not even guarantee property rights properly. So in the end. I know it harms everyone but the non guaranteeing of property rights should be paid for by government and its workers. They should at least have to take some responsibility on their doings.
Currently no country starts solving the problems this way. The are establishing more and more even more unproductive layers. This will not work. Again they won’t be held responsible for this. As soon as I and you changes to “government” the responsibility is gone. Bureaucrats just obey the written papers and if as long as they do that they can’t be responsible. And the law-makers itself hardly ever get in trouble for establishing any stupid law.