Growing foreign perils were perceived and promptly and fully reported, first to London and then to ministers. Some permanent officials, such as Crowe… - Correlli Barnett

Noble though the wartime aspirations of the liberal Establishment might be, New Jerusalem nevertheless constituted – just like the postwar illusion of Britain as a present and future world and Commonwealth power, or the pre-war faith in the League of Nations as a preserver of world law and order – a piece of romantic fantasising, rather like some gigantic palace in an engraving by Piranesi. And just as Piranse's imagination defied the laws of physics and geometry, so did the dreamers of New Jerusalem disregard the real-life problem of funding its construction out of what was now a bankrupt and backward industrial economy instead of the richest in the world that it had been in their youth.

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.

[A]fter all the arguments and lobbyings of 1934–5, the proposal to make friends with Japan in order to free English resources to meet the German menace petered out.
It had indeed really been foredoomed from the start, for while its proponents had been shrewd enough in their object, they had been unrealistic to the point of naïveté in thinking that it might be possible to win Japan's friendship without coming to a deal over China. In any case, even if the Government itself had been willing to conclude such a deal, it would have been vetoed by public opinion. For in 1934–5 the National Government was not in the position of an eighteenth-century administration, looking to a body of opinion composed of solid country squires, with the hardness and realism born of life on the land, and a relish for a shrewd and profitable deal. Instead there was a volatile mass electorate; an urban, rootless and emotional middle class, always ready to get in the fidgets of moral indignation.