"Niceness", the desire "to do the decent thing" – these qualities constituted then, and still constitute today, the emotional essence of small 'l' li… - Correlli Barnett

The change in the British since the eighteenth century went far deeper than conscious belief. Evangelical religion had modified the national character itself. The violence and quarrelsomeness that had once been noted as English characteristics had vanished, except in working-class districts; replaced by gentleness and readiness to see good in others. Kindness and gentleness indeed were now seen as prime virtues. The hardness, insolence and even arrogance with which Englishmen used to deal with foreigners had given way to an unlimited willingness to see and understand the other man's point of view, even that of an opponent; indeed a willingness to assume, out of a profound though absurd sense of guilt, that his case was morally better founded than their own. Thanks also to Victorian religion – and perhaps to Dickens – the English now evinced a compassion for the underdog and a sympathy for failure, and a corresponding suspicion of ability and success, that were unparalleled in other countries. Thus it followed that the English now preferred the soft handshake of goodwill and reconciliation (in which they placed unbounded trust) to the firm grip of decision and action. Appeasement indeed had become a conditioned reflex of the British middle and upper classes. Few would now say with Palmerston that the practical and sagacious thing to do in life was to carry a point by boldness: knock an opponent down at once, and apologise afterwards if necessary to pacify him.

Industrialisation in Britain had been a "bottom-upwards" grass-roots transformation brought about by the initiative of the individual "practical man", and without benefit of state guidance or intervention. This was in accordance with British political and commercial attitudes already deeply ingrained by the time that the Industrial Revolution got under way. For the British had come to prize individualism and localism, as against a strong and effective state, which they saw as the essential feature of the European despotisms they feared and hated... This traditional British dislike of the state was sharpened and given fresh doctrinal justification during the Industrial Revolution by the laissez-faire political economists, laissez-faire becoming, by 1850, a universal article of political faith. Even with regard to education, all must be left to private enterprise or private charity. In any case, it was thought, state intervention in education could lead towards tyranny. A national education system devised and directed by the state was therefore unthinkable.

A navy is no more than the armour and the weapons-system of seapower. The hull, providing essential buoyancy, is the national wealth. The propulsion is commercial and industrial success, which creates the national wealth. By the end of the Second German War in May 1945 British national wealth, once the greatest in the world, had given way to bankruptcy, with overseas debts exceeding reserves of gold and foreign currency by nearly fifteen times. Whereas in 1870 Britain's foreign trade had nearly equalled that of France, Germany and the United States put together, in 1945 her export trade had collapsed to less than one-third of the 1939 level, and her visible exports could finance no more than one-tenth of her overseas requirements. Worse still, the British industrial machine, once the envied model for the rest of the world, had been revealed by the war to the government, though not to the British people at large, as out-of-date in equipment, methods and attitudes; crippled by poor management and obstructive workforces; and weak in advanced technologies. All this was especially true of shipbuilding.