That Clausewitz lives, and will live, is equally shown in such cases as the former Yugoslavia, where Nato has simply frozen a war which will certainl… - Correlli Barnett

Britain in particular was again paying the penalty for a hundred years of Free Trade policy. This had rendered her dependent on enormous quantities of imported foodstuffs (to the ruin of British agriculture, only now being once more resuscitated in wartime by emergency measures). Free Trade had also reduced her general economic and industrial self-sufficiency by exposing her home market to massive imports of foreign technology, all of it paid for in peacetime by British exports (now reduced to only a third of the peacetime figure) or by income from foreign investments (now all liquidated). In the Victorian era this national dependence on a high volume of seaborne imports and exports had seemed the formula for unexampled prosperity. Now, in the crisis of a world war, it constituted, as in 1914–18, a strategic vulnerability that menaced the country's very survival.

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.

Now...came a further threat to the power of employers (no longer "masters"): the arrival of national trade unions or federations of unions. So the employers too began to organise themselves on an industry-wide scale. Their purpose was well expressed by Colonel Dyer, the American leader of the Federation of Engineering Employers (founded in 1896), in respect of his own industry. It was "to obtain the freedom to manage their own affairs which has proved so beneficial to the American manufacturers as to enable them to compete...in what was formally an English monopoly..." Just how far that freedom had been cumulatively shackled by the past step-by-step gains of the trade unions was revealed by books and newspaper campaigns urging Britain to "wake up" to German and American competition. In 1894 appeared the bestselling British Industries and Foreign Competition. In 1896 followed a "Made in Germany" press panic, on publication of a book under that title. In 1901 the Daily Mail followed a Daily Express series entitled "Wake up England!" with its own on "American Invaders". In 1900–1901 The Times, governing-class opinion incarnate, ran major articles on "The Crisis in British Industry" and "American Competition and Progress". Technical journals critically examined the efficiency of particular industries. All exposed British owners and managers as now widely old-fashioned in outlook, lethargic in action, and smug. But also fully explored was the opposition of the unions to new machines and new methods; the shackling effect of union restrictive practices on efficiency and productivity.