Isn’t protectionism OK in this case? Why do the Austrians prefer raising taxes and interest rates rather than protecting the local industry in a non-competitive and indebted economy?

If there is any situation in which protectionism is warranted, in my opinion, is when it is to protect private enterprise and local manufactures. No amount of equilibrium talk has persuaded me so far of the contrary. It seems that is preferred that local inefficiencies in an ailing economy that is being sucked dry by the state are legitimate in so far as they foster a sense of savings among the local population and diminish the role of State.