Two things caused the decadence of British maritime power: the long peaceful supremacy after Trafalgar and the capture of the navy by that hierarchy … - Correlli Barnett

[T]he essential and constant factor common to all three national academies [in Britain, France and America] is the indoctrination with tradition: potent emotional conditioning in military myth, habits, and attitudes. There are the physical symbols and reminders: engraved tablets of the glorious dead; the museums; the assembled iconography of illustrious graduates; statues; guns... At all three academies there are songs, slang, customs and ceremonies that link each annual class together for the rest of their army life... This indoctrination has grown out of history rather than been artificially created, but it may be doubted whether psychologists or sociologists could improve on it. Upon this mental sub-structure, purely neo-feudalist with its emphasis on glory, gallantry, honour, duty, and patriotism, is built functional and technical training, both concurrently at the academies, and later in schools of application. But it is this indoctrination, together with drill and discipline, that turns civilians into soldiers. Without it there would be no difference between a general in a defence ministry and a high executive in a business cartel. In terms therefore of creating the common character of the military elite, this constant factor of conditioning inside cadet colleges has been of greater importance than the changing detail and emphasis of academic curriculum and military training.

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.

Since the Great War was an artillery war, shells for field and medium guns stood at the top of the list. But that list also included motor transport, aircraft and aero-engines, small arms and ammunition, telecommunications kit, drugs, and later, tanks and poison gas. It was here that "the audit of war" (to coin a phrase) in 1914–1916 showed up the British industrial system as widely inadequate or obsolescent... To take the basic industrial sinew, British steel production in 1910 was little more than half the German total... According to the History of the Ministry of Munitions: "British manufacturers were behind other countries in research, plant and method. Many of the iron and steel firms were working on a small scale, old systems and uneconomic plant, their cost of production being so high that competition with the steel works of the United States and Germany was becoming impossible". In fact, this history draws the conclusion that in 1914–1916, "it was only the ability of the Allies to import shell and shell steel from neutral America...that averted the decisive victory of the enemy". More than 50 per cent of shells fired off in the Battle of the Somme in 1916 were American and Canadian.