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" "It remained only for Britain during the war to pour out the rest of the investments and the gold on the purchase of war supplies from the United States, while at the same time cutting visible exports to a third of the 1938 level for the sake of war production, and the basis of Britain's economic existence for the last hundred years had been comprehensively destroyed.
In 1945 Britain was therefore left by this nemesis of free trade with none of the advantages of being highly dependent on foreign trade, and all the vulnerability. In the immediate postwar era, and for the first time since the beginning of the industrial revolution, she would have to depend almost entirely on visible exports in order to secure the life and work of the nation and to rebuild her old prosperity.
Correlli Douglas Barnett (28 June 1927 – 10 July 2022) was an English military historian, who also wrote works of economic history, particularly on the United Kingdom's post-war "industrial decline".
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In the eighteenth century the English ruling classes – squirearchy, merchants, aristocracy – were men hard of mind and hard of will. Aggressive and acquisitive, they saw foreign policy in terms of concrete interest: markets, natural resources, colonial real estate, navel bases, profits. At the same time they were concerned to preserve the independence and parliamentary institutions of England in the face of the hostility of European absolute monarchies. Liberty and interest alike seemed to the Georgians therefore to demand a strategic approach to international relations. They saw national power as the essential foundation of national independence; commercial wealth as a means to power; and war as among the means to all three. They accepted it as natural and inevitable that nations should be engaged in a ceaseless struggle for survival, prosperity and predominance. Such public opinion as existed in the eighteenth century did not dissent from this world-view. The House of Commons itself reflected the unsentimental realism of an essentially rural society. Patriotism coupled with dislike and suspicion of foreigners were perhaps the only emotions that leavened the vigorous English pursuit of their interests; a pursuit softened but hardly impeded by the mutual conveniences and decencies of international custom and good manners.
[A]s Marx, Engels, Lenin and Mao perceived, the basic concept of war as a continuation of politics by other means can be applied to any form of rivalry between human groups, be they class, racial or ideological. In these contexts "war", or the use of force to compel an opponent to fulfil one's will, has far broader meanings than a traditional punch-up between nation states or alliances, or the kind of "absolute" or "total" war which Clausewitz saw as conceptually the purest form and which we have witnessed twice this century. Thus we saw anti-nuclear protesters employ force at military installations in pursuit of the political aim of persuading Western governments into unilateral nuclear disarmament. We saw Greenpeace employ force against Shell plc over the disposal of the Brent Spar platform. We saw Arthur Scargill's troops attempt by coercion to bring down an elected government, only to be defeated in, quite literally, pitched battles. We may note in these encounters and, for that matter, in the street brawls during the World Cup, another fundamental factor that is unlikely to change in the future – the dark well of aggressiveness that lies within human nature and finds release in the pleasurable adrenalin surge that comes from violence, risk and danger.
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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.