Is protectionism the answer to rising unemployment? Our guests strongly disagree, but in the courtliest possible way, in an exceedingly informative discussion of the various types of trade barriers (tariffs, import quotas, internal "turnover taxes" or VATs), how they are applied in different countries, and the effect of different levels of productivity. HW: "The point about wages is this: we pay maybe five times as much per manhour as do the Japanese. We pay two or three times as much as do the Germans, French, Italians. Now, does that ruin us competitively? The answer is we use very little labor per unit of input. And if you restate these wage comparisons, instead of wages paid per hour, in terms of wages paid per unit of output per slab of steel, or per car, or pair of shoes?" WFB: "Then we do a lot better." ORS: "... Now, Mr. Wallich has just said that there are some industries that are capital intensive, so to speak, where the labor cost is not as high. Well, now, I would like to demolish that theory."