The Paradoxical Truth of Adam Smith: Absolute Advantages of Countries in the Context of Russian Reality

Adam Smith, the Scottish economist of the 18th century, is considered the father of modern economics. In his work "The Wealth of Nations" (1776), he outlined the theory of absolute advantage, which explains why countries benefit from specialization and trade. According to Smith, each country should focus on producing goods that it can create more efficiently than others, meaning with lower resource costs per unit of output. Then, through trade, nations exchange these goods, increasing overall welfare. For example, if Portugal produces wine cheaper than England, and England produces cloth, then specialization and exchange make both countries richer.

This idea seems simple and logical, but in the real world, it takes paradoxical forms, especially when it comes to countries with distorted economies, such as the Russian Federation (RF). Russia, despite its vast natural resources, demonstrates a classic example where absolute advantages turn into a trap. Let's examine why the RF cannot compete in "peaceful" sectors but, according to some assessments, has found its "niche" in something destructive—weapons, fear, and terror.

The Shame of False Peace — Why Forcing Ukraine to Surrender Would Stain America Forever

Imagine it’s 1940. London is burning. German bombers rain death upon the city while Britain fights alone. And suddenly, the United States appears—not with help, not with weapons, but with a “peace plan.” The proposal: Britain should surrender to Hitler, recognize his conquests, cut its army, and stay “neutral.” In exchange, Washington would declare that it had brought peace to Europe. That’s exactly what Donald Trump is trying to do to Ukraine today, only the dictator’s name is Putin.

The Green Absurdity: When Electricity Becomes a Punishment

Once upon a time, the Netherlands was a model of “smart energy.”
A green tariff of €0.06 per kilowatt-hour encouraged citizens to install solar panels, invest in the future, and join the movement toward energy independence. You produced clean power — the state rewarded you.

But now the logic has flipped upside down: the tariff has become negative — –€0.06 per kWh. In other words, citizens not only give away their electricity for free, but actually have to pay for doing so.

This isn’t just an economic paradox. It’s the anti-utopia of the green transition, where initiative and trust are punished instead of supported.