The theory of profit/interest has major implications for the understanding of capital accumulation, the determination of real wages and the general standard of living, taxation, inflation/deflation, and the business cycle.
When the state spends more money than it receives in taxes — a fact indelibly written into the bond — it is deliberately committing an act of bankruptcy. Is dishonesty transmuted into its opposite when committed by a legal entity?
While Austrians see how individuals working through free markets have bettered their life situations, Krugman and his colleagues see only chaos, failure, and bad food.
Hoover's interventionist policies focused on labor markets with the goal of keeping wages and employment high. Bush's interventionist policies focused on capital markets with the goal of keeping financial markets functioning.
