So the new or re-vamped public schools did not set out to equip their pupils to lead great industrial enterprises or a great industrial nation, but t… - Correlli Barnett

[T]he Cabinet...continued to put their faith in bringing about the "appeasement" of Europe by negotiation; in other words, in reaching a general settlement of all outstanding European problems with the co-operation and consent of Nazi Germany... The Cabinet thus elected to follow a course of action which stood in flat contradiction to their own expressed convictions about the nature and aims of the Nazi régime, and about the worth of the Nazi signature.
Nothing could be more in the romantic tradition than so to reject what was dictated by knowledge and commonsense, and instead pursue the impossible but ideal. But this was a Cabinet refulgent with high ideals – high Victorian ideals. By the mid-1930s the direction of English policy had fallen even more completely into the hands of clergymen manqués than during the 1920s and for the most part clergymen manqués now well advanced in middle-age or even into elderliness. In Baldwin's Cabinet in 1936, MacDonald, Runciman, Kingsley Wood, Neville Chamberlain and Simon represented the nonconformist conscience; Halifax and Hoare the High Church; and Inskip the evangelicals. Their approach to world affairs owed no less to Victorian liberalism, for they were deeply imbued with its abhorrence of struggle and its optimistic faith in human reason and goodwill... The political and moral equipment of the English cabinet ministers of 1936–7, being thus designed for an historical situation which had long since disappeared, was useless in the present international environment.

In 1937, the best trading year for Britain between the world wars, the volume of her visible exports amounted to only two-thirds of the 1913 figure. The British share of world trade in manufactures fell from nearly 24 per cent in 1921–5 to 18.6 per cent in 1936–8, whereas Germany's share actually rose from 17.4 per cent to 19.8 per cent, and Japan's from 3.4 per cent to 7 per cent. As a consequence of this slow defeat and retreat in world markets for manufactures Britain was compelled to look more and more to her invisible exports (banking, insurance and shipping services, plus the income from the vast overseas investments built up during the Victorian age) in order to pay for the imports essential to the nation's life and work. Even at the height of her nineteenth-century dominance as a manufacturing country Britain had relied on such invisible exports to keep her balance of payments in equilibrium – indeed to enable her to earn the surpluses to invest overseas. But the percentage of imports that had to be covered by invisible earnings rose from 19.2 per cent in 1870–4 to 44.4 per cent in 1935–9. Even so, Britain by these latter years was incurring an overall balance of payments deficit. Like some ageing industrialist who finds that the shrunken profits from the family firm are no longer enough to pay for his accustomed way of life, Britain had to resort to spending capital. In other words, in the run-up to the Second World War Britain was gradually selling off her foreign investments and using up her gold reserves.

The French, in their attitude to making peace, were...preoccupied with the question of Germany's power in the future; a future which they saw as one of continued rivalry between nations.
The British and the Americans, on the other hand, had no such hard, clear-cut policy; felt no such overriding concern with German power. In the first place they shared the liberal assumption that the normal human condition was what they called "peace"; a natural harmony in which "war" was simply a meaningless and regrettable breakdown. They did not agree with the Clausewitzian view that "peace" and "war" were alternating aspects of a perpetual conflict of interest between organised human groups, a conflict which can express itself in mere economic and diplomatic rivalry; in threats of force; in covert violence or open pressure; in local use of force; in limited war; or finally, in total war. The notion that the Allied victory in the Great War was just one episode in a continuing struggle, from which the maximum advantage must be derived for the next episode, was therefore alien and repellent to them.