On the basis of legal advice sketchy enough to be put on one side of a sheet of A4, and from a single lawyer who was also a cabinet minister, Blair f… - Correlli Barnett

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.

The European states, and above all Germany (newly united in 1871), therefore entered the second Industrial Revolution, that of science-based industries like chemicals and electrical goods, very well equipped by education, training, and research systems to take the lead. Britain, on the other hand, could only deploy a sorry militia of the ignorant led by the "practical man". Not merely did Britain lack a modern educational and research structure, it lacked the necessary national understanding and will to create one. Here then is the leitmotiv in British education for the next sixty years: the painful effort against the very grain of national prejudices to remedy what was already by 1870 a half-century of backlog.

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.