Ever since the war we had lived in a form of state socialism with tremendous controls and regulations over economic and social life. I can remember w… - Correlli Barnett

With the outbreak of war in 1914 the internationalists in the Liberal and Labour parties, already losing credit, seemed to go into intellectual bankruptcy. The moral law was demonstrated to carry less weight than a military railway timetable. A solemn treaty was shown to have the protective power of a magic charm. The natural harmony of human interests was disproved by the spectacle of great nations at each other's throats. The pacifying and unifying effects of modern science and communications were ridiculed by the convenience with which railways launched into battle millions of men equipped with artillery and machine-guns. The liberal-evangelical faith in love, reason and the brotherhood of man was cruelly mocked by the ferocious hatreds bayed by the mobs in the great cities of Europe.

It is noteworthy that neither the Labour Party's plans for "reconstructing and regenerating" Britain nor the so-called or alleged "social contract" makes provision for reconstructing and regenerating the one British institution which most of all shackles our productive progress and denies us prosperity. I refer of course to the trades unions, whose insistence on over-manning and on rigid demarcations is responsible for the low productivity and want of flexibility of operation in British industry, as was finally and conclusively proved by the experience of the three-day week... It might be thought that it was time that the trade unions, who claim so much in terms of power and privilege and yet contribute so little towards the achievement of a British economic miracle, were compulsorily reconstructed too. Such a course is of course politically out of the question. But then it is already clear from the manifestos and the speeches that, over the entire field of policy, what is nationally necessary is still politically impossible. Adjustment to reality being therefore...too painful a cure for us voluntarily to adopt, we shall fool on until there is no more foreign money to be borrowed, but only to be repaid, and catastrophe at last forces adjustment to reality upon us.

For other great powers did not see the world as one great human society, but – just as the British had done up to the nineteenth century – as an arena where, subject to the mutual convenience of diplomatic custom, nation-states – the highest effective form of human society – competed for advantage. They did not believe in a natural harmony among mankind, but in national interests that might sometimes coincide with the interests of others, sometimes conflict. It followed that they considered that relations between states were governed not by law, nor even by moral principle, but by power and ambition restrained only by prudent calculation and a sense of moderation. War therefore, in their view was not a lamentable breakdown of a natural harmony called peace, but an episode of violence in a perpetual struggle. European powers looked on armed forces not as wicked, but as among the instruments of diplomacy. Indeed, whereas in Britain romantic emotion expressed itself in visions of a world society, in Europe it had given rise to a fervent nationalism. In the late nineteenth century the world was becoming not less dangerous and anarchical, but more so. Moralising internationalism, born out of liberalism by evangelical faith, was therefore an unsuitable guide to British policy.