On the basis of legal advice sketchy enough to be put on one side of a sheet of A4, and from a single lawyer who was also a cabinet minister, Blair finally took Britain to war against a country which posed no threat at all to British interests, let alone to the United Kingdom itself.
There can be no sterner test of a national leader's soundness of judgement than when he has to decide between peace and war. And there can be no sterner test of his probity than his choice of the means of persuading his countrymen to back him. Both these tests Tony Blair has unquestionably failed. As a result, he stands convicted of being wholly unworthy of our trust. This is the central fact of this election, and we should vote accordingly.

It hardly needs emphasising that this wartime technological revolution marked a complete departure from Victorian and Edwardian laissez-faire orthodoxy. Given time for consolidation and further development – probably under some form of protection such as fostered the growth of American, German and Japanese industry – Britain's wartime achievements might have served as the starting-point for a root-and-branch modernisation of Britain as an industrial society. Indeed, the 1918 report of the Committee on Commercial and Industrial Policy virtually recommended this.
More fundamentally still, the wartime revolution could have served as the prototype for a new British "total strategy", based on Britain's own technological strength: in other words, the German and Japanese version of capitalism, a partnership between state and industry, rather than the Anglo-Saxon version. But instead Britain tried after the war to revert to her Victorian and Edwardian total strategy based on laissez-faire, the City of London, the gold-standard pound sterling and the Empire – with consequences which would only be fully revealed when the Second World War submitted Britain to yet another audit of industrial capability.

The urgent challenge of winning a total war against so formidable an enemy as Germany, indeed the peril of national defeat, jolted Britain as an industrial society far more effectively than mere peacetime world-market competition, to which she had failed to respond as she should have done according to classical economic ideas. A remarkable technological revolution began in Britain in 1915 and was consummated in 1918 – remarkable not only because of all the deficiencies that had got to be made good, but also because the revolution was accomplished under wartime conditions and at utmost speed. It is also noteworthy that it was masterminded by the government, and that many of the new American-style factories were actually owned and operated by the state.

The audit of the Great War showed up widespread human weaknesses in British industry. Too many British capitalists in their boardrooms were simply self-trained "practical men" smugly content with old products, old equipment and old markets, guided by a concern for short-term profits rather than for the long-term development of their businesses. The trade unions...were resolutely resistant to new technology, while also holding back productivity by a maze of demarcations and restrictive practices.

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Cobden in his boundless mid-Victorian optimism about free trade could no more have imagined such a plight than Adam Smith could have imagined refrigerated cargo ships bringing meat from the New World to undercut British livestock farmers. Perhaps their intellectual descendants today are at times too preoccupied with peacetime world trade and the advantages of economic specialisation between nations, to the neglect of the total-strategic implications in wartime of such specialisation. But at least Adam Smith himself recognised that, in his words, "defence, however, is of much greater importance than opulence".

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Machine-tools, ball-bearings, magnetos, internal combustion engines, drugs – it is hard to name a basic necessity of advanced technology in which Britain was self-sufficient in 1915... Thus the audit rendered by the first two years of the war on Britain's own capabilities in newer technologies proved harsh enough. Nonetheless, economic historians might object that Britain's Victorian and Edwardian "total strategy" actually served her well enough in wartime. Thanks to her accumulated wealth and her credit as the centre of a global free trade economy and thanks also to British seapower, she could buy in all the technological imports that she needed – largely from North America. But there are two snags here. First, wealth and credit are wasting assets when spent, while the spending only serves to profit other countries' manufacturers and build up their industries. In contrast, up-to-date export industries of your own are long-term earners. Secondly, the high degree to which free trade had rendered Britain dependent on imports of food and raw materials actually brought her near to complete national defeat in 1917 at the hands of the U-boat... Moreover, even though the U-boat was narrowly beaten, Britain had to devote immense naval resources to the merely defensive purpose of keeping open her sea lifelines. This pattern was to be repeated in the Second World War.

Since the Great War was an artillery war, shells for field and medium guns stood at the top of the list. But that list also included motor transport, aircraft and aero-engines, small arms and ammunition, telecommunications kit, drugs, and later, tanks and poison gas. It was here that "the audit of war" (to coin a phrase) in 1914–1916 showed up the British industrial system as widely inadequate or obsolescent... To take the basic industrial sinew, British steel production in 1910 was little more than half the German total... According to the History of the Ministry of Munitions: "British manufacturers were behind other countries in research, plant and method. Many of the iron and steel firms were working on a small scale, old systems and uneconomic plant, their cost of production being so high that competition with the steel works of the United States and Germany was becoming impossible". In fact, this history draws the conclusion that in 1914–1916, "it was only the ability of the Allies to import shell and shell steel from neutral America...that averted the decisive victory of the enemy". More than 50 per cent of shells fired off in the Battle of the Somme in 1916 were American and Canadian.

In the twentieth century the capability of a nation's armed forces cannot be separated from that nation's technological capability and industrial resources, or even social fabric. This realisation led me...to the concept of "total strategy", defined...as strategy conceived as encompassing all the factors relevant to preserving, or extending, the power and prosperity of a human group in the face of rivalry from other groups... It will be seen that "total strategy" provides a different approach from that of the economic historian, and especially an economic historian in the Anglo-Saxon Adam-Smithian free-market tradition.

The truth is that the Labour Government, advised by its resident economic pundits, freely chose not to make the re-equipping of Britain as an industrial society the Schwerpunkt of her use of Marshall Aid. Instead, the Government saw Marshall Aid (like the American loan of 1945) primarily as a wad of greenbacks stuffed by a kindly Uncle Sam into the breeches pocket of a nearly bankrupt John Bull who, though diligently seeking future solvency, nevertheless still wished in the meantime to go on playing the squire, beneficent to his family and the poor, and grand among the neighbours.

In the 1960s and 1970s British folk-wisdom cherished (perhaps still cherishes) a comfortable explanation for Britain's relative economic decline since the Second World War, and especially her then all too evident industrial backwardness compared with West Germany. West Germany, so the story goes, had all her industries and transport system bombed flat during the war, and then, thanks to Marshall Aid, was able to completely rebuild them with the most up-to-date equipment. Meanwhile poor old Britain had to struggle on with worn-out or obsolete kit.
This favourite British "wooden leg" excuse is pure myth. In the first place, West German industrial capacity in 1948 stood at 90 per cent of 1936 despite wartime bombing and postwar reparations. Secondly, Britain in fact received a third more Marshall Aid than West Germany – $2.7 billion net as against Germany's $1.7 billion. She indeed pocketed the largest share of any European nation.

That idealism was of course shared by the whole Cabinet, including its chapel-bred working-class members. All their adult lives the vision of New Jerusalem had inspired them to struggle through the sloughs of committee work and along the stony paths of electioneering. However, in the expectation of coming to power in a rich imperial Britain, they had always assumed that they would build New Jerusalem by the simple method of redistributing wealth from the rentier class to the working masses. Now, in Government, they found themselves in a plight to which a lifetime's assumptions were quite inappropriate, for instead of redistributing wealth they were faced with the urgent and immensely more difficult task of creating it. Their problem in adjusting their minds to this sordid need was shared by the small-'l' liberal Establishment as a whole, especially in the opinion-forming intelligentsia, as Lord Annan acknowledges in his book Our Age: "Unfortunately we were more concerned with how wealth should be shared than produced."

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In his 1982 book On Britain, that Anglophile German, Ralf Dahrendorf, was to opine that Britons lacked that urge for material achievement which drove his fellow countrymen... The consumer boom of the mid-1980s, when the British were to rush to the household super-stores to stuff their houses with new furnishings and electrical kit of every kind (most of it imported), might seem to prove Dahrendorf wrong. Yet in fact this spending was to be mostly done with borrowed money, thanks to the ballooning, soon punctured, of property values. It did not represent the fruits of extra effort and careful saving, as had the German "middle-class" lifestyle to which Dahrendorf referred and which constituted the outward manifestation of a genuine economic miracle. Even after undergoing Margaret Thatcher's strident sermons on the "enterprise culture" in the 1980s, most Britons (according to opinion polls) still aspired to be comfortable rather than rich – an aspiration which, even if morally admirable, hardly compares with greed as a psychological motor of economic growth.

Nor, except in the garden or allotment or on the sports field, did Britons generally evince an eagerness for strenuous effort. A journalist with the British Army advancing into the heart of Germany in April 1945 noted: "It occurs to me that the Germans are a menacing race by reason of their docility and their ability to toil. No man ought to love work as they do – it's indecent, certainly uncivilised. We English don't love work in this slavelike way, and thank God for it." And a week later the same journalist, J. L. Hodson, confided to his notebook that the reason why the British were unable to maintain hatred for long was their temperament was "too lazy, too indifferent, too good-natured".

[A]s Britain's wartime record demonstrates and the contemporaneous surveys of postwar export prospects grimly concluded, here was no industrial equivalent of a panzer striking force, superbly equipped with the best of modern technology, its troops brought to a high pitch of morale and tactical training, and blessed with dynamic leadership from the high command down to junior officers and NCOs. Rather, Britain as an industrial society in 1945 more resembled the French Army of 1940 – its equipment (including infrastructure such as ports, roads and railways) largely old and outmoded; its tactical doctrines out of date; the standard of training of its regimental officers (in other words, line and shop-floor managers) often lamentable; its NCO corps (trade union conveners and shop-stewards) more devoted to thwarting the officers than obeying them; the morale and motivation of its ill-educated rank and file low, even to the point of recurrent local mutiny; and its generals (boards and top management) largely too timid, too torpid, too set in the ways of the past to measure up to the exacting role of planning and conducting a war of conquest for world markets.

It remained only for Britain during the war to pour out the rest of the investments and the gold on the purchase of war supplies from the United States, while at the same time cutting visible exports to a third of the 1938 level for the sake of war production, and the basis of Britain's economic existence for the last hundred years had been comprehensively destroyed.
In 1945 Britain was therefore left by this nemesis of free trade with none of the advantages of being highly dependent on foreign trade, and all the vulnerability. In the immediate postwar era, and for the first time since the beginning of the industrial revolution, she would have to depend almost entirely on visible exports in order to secure the life and work of the nation and to rebuild her old prosperity.