Industrialisation in Britain had been a "bottom-upwards" grass-roots transformation brought about by the initiative of the individual "practical man"… - Correlli Barnett

Except in rare cases such as Robert Owen's paternalistic management at New Lanark, the brutality of indoctrination into the life of a coolie in a vast camp for coolies, performing coolie work in service to machines, was unsoftened by positive care and control by the state. Not until the great uprooting and resettlement had been largely completed did Parliament belatedly begin to mitigate the squalor, chaos and exploitation by reforms in local government and public health, and by regulating working conditions by successive Factory Acts... This was the environment, then, which moulded the character of the new British working class: a home life in a mean brick hovel without piped water in an unpaved street with open drains, much like the townships in which the Bantu coolies of South Africa still live today; a working life at the mercy of a "practical-man" master who believed that the profitability of his business depended on low wages and long hours. It was, after all, from the study of the British working class that Marx and Engels principally derived their conception of the alienated proletariat.

Between 1950 and 1952 the volume of British exports fell by 5 per cent (rearmament again), while German exports rose by over 50 per cent and American exports by about 20 per cent. In just those two years Britain's share of world trade in manufactures dropped from 26 per cent to 22 per cent. By the end of 1954 it was down to just over 20 per cent. In 1955 American exports of manufactured goods rose by about 9 per cent by value, Germany's by 18 per cent, Japan's by 27 per cent – and Britain's by 7 per cent.

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.