Ep. 273 The Austrian Theory of Interest, Current and Future
Bob Murphy Show
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The Importance of Interest in the Economy
When a neoclassical would write in a standard model, r equals the production. That's showing you how much you could rent out a tractor per unit time. The analog of interest for the worker would not be the wage rate. You had to say, well, how much did I pay to buy the slave? And then when I rent the slave out to the plantation owner down the street and he pays me some money to rent the slave for a day. So do you see how the dimensions are wrong?
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