Increase liberty, for example, decreasing the surveillance state, increasing those freedoms of speech and assembly which are these days considered "pre-crime" and "conspiracy to commit". However, occasionally, people will abuse the freedoms available to commit crimes. Create a fund, probably funded by taxation and also fines against convicted criminals, which will pay out to victims of those crimes. (Though many will say, "No amount of money can compensate for a lost loved one...")
The idea is increased quality of life with more liberty will result in increased economic growth more than justifying the cost in taxation or victims' fund.
Can market forces determine which liberties are worth sacrificing?
Devil in the details. Incentives to commit crimes become weird.
Originally inspired by an idea of mandatory, fully state subsidized, life insurance against terrorism.
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