belief of reduction of tariffs, globalisation, international trade and, yes, in theory, or by david ricardos makes everybody richer. but what is less pleasant in this equation is that it works. i think only when countries are on the same ground when it comes to democracy, human rights, independent courts, freedom of speech, free elections, and so that you more or less know what to expect from the other, because the other is quite similar to you. take russia's export of gas to european union — it was, i would say, a plan to have the region basically hooked on energy supplies. and then, at the worst point, it becomes your problem, like it was in 2022 when the taps were being closed and there was a huge challenge for europe. shall we blink and say, "we give up, we don't care about ukraine any more?" or shall we rearrange our energy supplies at a very high cost? so we need to be mindful that not all the countries are like—minded. and unfortunately, we need to arrange our relations so that we take into account the security challenges, because they might be striking us at a very bad moment. as be

to raise tariffs, which in fact will have very negative conflict, which is on the economy, when david ricardowrote about this somewhat later he made a very powerful point. you raise tariffs. it turns out the demands that you have for their goods are going to go down and whatever you hope to gain by the tariff you're going to lose by the shifts in the relative values of currency so that it will make it more difficult for you to export goods. so there's no strategy of protection which doesn't lead to dual ruin, and that is still the basic condition today. but there was at no point a serious move to abolish the tariffs. and when you start to think about some of the causes associated with the civil war the differential impact on tariffs between northern and southern dominant course. slightly, surely was, but was one of these things which in fact really had the same kind of operation starting to look in other places and, you see the same kind of equivalent history both ways, getting to very troublesome. and so we mentioned commerce and one of the dominant provisions of the united states constituti

. >> what is your favorite thing from david ricardo?mpetitive advantage. >> that means what? the country should produce what it's best at? >> precisely. each country will have a lower opportunity cost or how it gives away something to do something. >> here is my favorite part of that. if you are france anxid you produce bread and wine and you are italy and you produce bread and wine. what should you do? >> produce only bread. >> get rid of the wine? >> get rid of it. >> that's what it is. it is science. >> one of my problems with subsidizing industries here is you are going against comparative -- >> hold that thought, joe. >> the only other problem is you outsource a lot of jobs if labor is cheaper somewhere elsewhere it makes sense. that's why we lost a lot of jobs. it is not absolute. >> nothing in economics is absolute. >> we talked about that before. >> are you in the adam smikt diff smith division? >> i will have to go with his absolute hand that it exists and it is beneficial for the economies. the invisible hand is the idea every