The 1902 Act led to a major expansion in secondary education, so that by 1914 there were 1,123 such schools, of which 500 were directly run by the local authorities while the remainder was denominational. Unfortunately, the prestige of a "grammar school" education, itself derived from the Arnoldian public school, with its emphasis on the academic approach to both the arts and science, impressed itself on parents, local authorities, and the Board of Education alike, so excluding a system of alternative secondary education of equal standing, like the German Realschule, more related to Britain's existence as a commercial and technical power.

In 1890 there were still twice as many academic chemists in Germany as in Britain, though the British population was three-quarters of the German figure. In 1892 Britain had 287 academic staff in mathematics, science, and engineering compared with 452 in Germany. In engineering in particular the major German technical high schools had 7,130 students in 1901 against a total of 1,443 in British universities. In terms of overall university provision, Britain spent £26,000 in government grants in 1897, while Germany spent £476,000; in 1902 Germany had 22 universities for a population of 50 million, England and Wales 7 for 31 million.
And...British industry still lagged badly in advanced industries like chemicals, electricals, and machine tools, and even in basics like steel—partly because of a continuing lack of trained personnel at all levels (the "practical man" still failing to recruit enough of them). Britain's annual rate of growth in the years 1880–1900 averaged 1.7 per cent against Germany's 5.3 per cent and America's 4.5 per cent. Britain's own rate of growth in industrial production was also declining—from 33 per cent in the decade of the 1860s to 24 per cent in the 1890s and 9 per cent in the 1900s.

[L]ate-Victorian Oxbridge positively harmed the prospects of the British economy by completing the work of the public schools in turning out a governing élite imbued with Newmanian ideals of a liberal education in humanistic culture; an élite which both generally and in particular cases...neglected or even hamstrung developments in technical education.

The European states, and above all Germany (newly united in 1871), therefore entered the second Industrial Revolution, that of science-based industries like chemicals and electrical goods, very well equipped by education, training, and research systems to take the lead. Britain, on the other hand, could only deploy a sorry militia of the ignorant led by the "practical man". Not merely did Britain lack a modern educational and research structure, it lacked the necessary national understanding and will to create one. Here then is the leitmotiv in British education for the next sixty years: the painful effort against the very grain of national prejudices to remedy what was already by 1870 a half-century of backlog.

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The approach of European countries to industrialisation and the role of education was different from Britain's from the start, and it sprang from a fundamentally different concept of the role of the state itself. Even in the pre- or post-industrial area of the seventeenth and early eighteenth centuries, European monarchies had regarded it as their function to promote commercial and industrial progress by interventionist measures, including the setting up of training schools for particular crafts and professions. With the advent of the Industrial Revolution, it became entirely natural for European governments to follow their older traditions and seek to guide and foster their countries' industrialisation. In particular they saw that the state alone could bring about a structure of national education at all levels which would feed industry with well-educated and trained personnel.

Industrialisation in Britain had been a "bottom-upwards" grass-roots transformation brought about by the initiative of the individual "practical man", and without benefit of state guidance or intervention. This was in accordance with British political and commercial attitudes already deeply ingrained by the time that the Industrial Revolution got under way. For the British had come to prize individualism and localism, as against a strong and effective state, which they saw as the essential feature of the European despotisms they feared and hated... This traditional British dislike of the state was sharpened and given fresh doctrinal justification during the Industrial Revolution by the laissez-faire political economists, laissez-faire becoming, by 1850, a universal article of political faith. Even with regard to education, all must be left to private enterprise or private charity. In any case, it was thought, state intervention in education could lead towards tyranny. A national education system devised and directed by the state was therefore unthinkable.

Britain came out of the Second World War as an obsolescent industrial economy with grievous weaknesses. Instead of first devoting all possible resources and effort to remedying this, she chose to load this economy with the vast and potentially limitless cost of the welfare state; current expenditure before capital investment; the patterns of the next thirty years.

If therefore you look at Britain as an industrial society around 1944–5 in all its aspects, including education, it is clear that what was needed was fundamental reform and reconstruction; massive capital investment in rebuilding and re-equipping; a huge expansion of education and training at all levels. In a word, an "economic miracle" such as Germany and other European states, Japan too, actually carried out in the late 1940s and early 1950s. Yet no such "economic miracle" ever took place in Britain—even though she was to receive a third more Marshall Aid than West Germany, for instance: 2.7 billion dollars to 1.7 billion. It never took place because of fundamental policy decisions taken by the wartime coalition government in 1943–5, and to which postwar governments broadly adhered for some three decades.

Britain's proportionate losses in killed of men aged 15–49 was just under half that of France. Britain suffered a 6.7 per cent loss as against Germany's 10 per cent. Therefore the "Lost Generation" as applied to the whole nation is confirmed as a myth. No one has disputed that losses fell disproportionately on the products of the public schools and Oxbridge. But this raises two questions. In the first place Bomber Command's losses in aircrew in the Second World War (an equivalent élite of educated and intelligent young men) were considerably higher, at 55,888 dead, than that of subalterns on all fronts on the Great War of 37,452, but no one has sought to romanticise Bomber Command's losses or seek to use such loss to explain our national decline, in the fashion of the "Lost Generation" myth. In the second place, Dr. Strachan and others of his standpoint may over-estimate the value to Britain of these highly publicised public-school and Oxbridge heroes. Does one really see Pre-Raphaelite knights like Julian Grenfell or Rupert Brooke saving Britain from industrial decline and leading us to the conquest of markets in high technology? Consider how useless the most famous survivors proved, such as Sassoon and Graves, or, for that matter, Eden.

Does not Mr E. P. Thompson see any connexion between the internal nature of the Soviet empire as an oligarchic tyranny and its external policies? As a former communist he must know that the Soviet regime is of its very nature and from earliest origins a minority conspiracy that has gained and maintained power by force and trickery; that because of this inherent nature it always has been and remains terrified of independent centres of thought or power, whether within the Russian empire or beyond its present reach. It is the conjunction of such a regime, and its manifested wish to dominate others, with armed forces powerful beyond the needs of mere defence that is the engine of the present "armaments race". Who believes that Nato and its armaments would exist if Russia had been a Western-style open society for these last 60 years? The first requirement for large-scale nuclear or any other kind of disarmament is the withering away of the Communist Party of the Soviet Union.

[G]iven that we are today a country that would be as bankrupt as British Steel if it were not for the lucky strike of North Sea oil, and that our gross national product is only half West Germany's, the attempt to maintain "balanced" forces plus a nuclear deterrent constitutes an exercise in nostalgic unrealism. We are like an impoverished aristocratic family who, by petty economies, struggles to go on living in the gradually decaying ancestral mansion rather than live comfortable within their means in a bungalow. Thirty-five years after the Second World War it really is time that we faced the reality of our true status as a nation and adopted a defence policy appropriate to it.

It is entirely wrong to divide and separate education, in the sense of enabling somebody to realize his or her own potential, from education that enables them to make their way in the world and earn a living. By concentrating solely on what seems to me to be a vastly too ideal form of education you will be projecting people into the world who may have acquired a splendid taste for Mozart, or whatever, but who are totally incapable of earning a living. We might have a nation which was enormously cultured, but actually could not keep a roof over its head, or warm itself or provide itself with food. The first law is survival.

Britain therefore entered the twentieth century an ill-educated, one might say ignorant, nation compared with its rivals; and particularly weak in those key areas of education on which industrial success depends. We see in these failures the combined baneful effects of liberal laissez-faire's reluctance to embark on large-scale state education at all levels, the "practical man"s' scorn for technical education, and a public-school-educated governing élite's lack of comprehension that Britain stood or fell by her industrial capability.

So the new or re-vamped public schools did not set out to equip their pupils to lead great industrial enterprises or a great industrial nation, but to turn them into Christian gentlemen able to govern the Empire and ornament the ancient professions like the Church and the Law. The eighteenth-century dissenting academy tradition of blending the arts and science into a practical preparation for a working life withered away. The prestige of the public schools as an avenue into gentility and the upper class seduced businessmen and engineers alike into sending their children to them. The public schools not only failed to educate a technical élite, they served to starve industry of the nation's highest available intellectual talent and the socially most prestigious groups. Industry and technology became what modern research confirms it still is in Britain—low in status, and hence, in a continual vicious circle, low in reward and low in human calibre compared with our rivals. By the 1850s an immense gulf had opened, from both sides, between industry and such education as there was—between the "practical man" despising education on the one hand, and the public schools on the other concentrating on the classics, religion and games.

Yet there had been an educational revolution in Britain since the 1820s—the reform and expansion of the public schools which produced the British governing élite. And it is in the nature of the Victorian public school that we find the other key factor explaining why Britain was so slow and so inadequate in educating for industrial capability. The Victorian public school was inspired by the religious and moral idealism of the Romantic Movement. It turned away from the realities of the industrialized world of the era and from such topics as science and technology.