In the spring of 2013, the British government was considering how the nation should remember the centenary of the Great War. At that time Jeremy Corbyn made some remarks on the subject, and in April the Communist Party uploaded them to Youtube. His words would no doubt have lingered in obscurity, were it not that in September this year the same Jeremy Corbyn was elected leader of Britain's Labour Party. This weekend his remarks of more than two years ago were brought under critical scrutiny. What attracted the ire of the Sunday columnists was the following words:
Keir Hardie ... was a great opponent of the first world war and next year the government is apparenlty proposing to spend shedloads of money commemorating the first world war. I'm not quite sure what there is to commemorate other than the mass slaughter of millions of young men and women, mainly men, on the western front and all the other places.
As an economic historian I was more interested in what came next:
And it was a war of the declining empires, and anyone who's read or even dipped into Hobson's great work of the early part of the twentieth century, written post-world war, that presaged the whole first world war as a war between monopolies fighting it out for markets and that's essentially what the first world war was.
My notes. "The declining empires": I'm not sure what that can mean, for in 1914 the major empires were surely at their highest moment. "Hobson's great work of the early part of the twentieth century." This is most likely a reference to J. A. Hobson work on "imperialism." Hobson (1902) argued that the capitalist industrial economies of the time suffered from underconsumption, because the big companies were raising productivity while pushing down wages. As a result, there was not enough purchasing power to buy all the output, which was accumulating as surplus capital. Faced with too much capital, Hobson argued, the capitalists solved the problem by exporting it to poorer countries. Having done that, they needed to protect their investments by bringing the poorer countries under colonial administration. So, this was a a theory of imperialism. Being published in 1902, Hobson's book was not "written post-world war" because the world war was yet to come. And it did not presage the coming war "as a war between monopolies fighting it out for markets"; that idea came along later, when the war was already in progress, and belongs to Lenin (1916). While Hobson did not predict the Great War, he did draw a clear link from imperialism to nationalism, and he opposed the war when it came.
How does the Hobson-Lenin view of the Great War stand up today? Not well. Here are two problems:
Problem #1. The surplus of capital does not explain imperialism. In the words of Gareth Austin (2014: 309):
the major outflows of capital from the leading imperial powers, Britain and France, went not to their new colonies but to countries which were either the more autonomous of their existing colonies (such as Australia) or were former colonies (the United States), former colonies of another European country (as with Argentina), or had never been colonized (Russia). Decisively, several of the expansionist imperial powers of the period were themselves net importers of capital: the United States, Japan, Portugal, and Italy.
Problem #2. The protection of business interests abroad does not explain the outbreak of the Great War. Richard Hamilton and Holger Herwig (2004) reviewed the evidence, country by country. In every case, including specifically Austria-Hungary, France, Germany, and the United Kingdom, they found that the business constituency was excluded from the decisions that led to war. Had the business leaders been consulted, they would have opposed war. (This would also have been true in Russia, a case that Hamilton and Herwig do not consider.) They conclude (p. 247):
Economic leaders were not present in decision-making circles in July 1914. And, just as important, their urgent demands to avoid war were given no serious attention. It is an unexpected lesson because many intellectuals give much emphasis to the power of big business. The logic is easy: industrialists and bankers have immense resources; anxious and deferential politicians, supposedly, must respond to their demands. But the realities were quite different. At one point a German banker, Arthur von Gwinner, “had the audacity to point out Germany’s dire ﬁnancial straits” to Wilhelm II. The monarch’s reply: “That makes no difference to me.”
In remembering the Great War, we should be careful to remember it as it really was. War did not break out in 1914, as Jeremy Corbyn seems to think, because of a money-making war machine, or because commercial interests were manipulating politics behind the scenes.
The Great War broke out because secretive, unaccountable rulers in Vienna, Berlin, and St Petersburg decided on it (I wrote about this in more detail in Harrison 2014). They feared the consequences but decided on war regardless because they believed the national interest would be better served by risking it in aggression than by remaining at peace. They believed this based on a nationalist, militarist, and aristocratic view of the national interest, in which profit and commercial advantage played no role. They decided on war in July 1914, and not in any previous crisis, because in previous crises they had been divided. They came together in July 1914 because this was a moment when Anglo-French deterrence failed, and this reduced their fear of the consequences of aggression below some critical threshold.
Thus two deeper causes lay behind the Great War. One was the ability of autocratic rulers to plan aggressive war in secret, ignoring public opinion, or taking it into account only to manipulate it. The other was the failure of the democracies to deter the aggressors. These lessons are still of value today. But to value such lessons you first need a desire to learn about what actually happened. And a political leader who bases his entire understanding of the Great War on a book published in 1902 seems to have missed that desire to learn.
- Austin, Gareth. 2014. "Capitalism and the Colonies." In The Cambridge History of Capitalism, vol. 2: 301-347. Edited by Larry Neal and Jeffrey G. Williamson. Cambridge: Cambridge University Press.
- Hamilton, Richard F., and Holger H. Herwig. 2004. "On the Origins of the Catastrophe." In Decisions for war, 1914–1917, pp 225–252. Edited by Hamilton and Herwig. Cambridge: Cambridge University Press.
- Harrison, Mark. 2014. "Myths of the Great War." CAGE Working Paper no. 188. University of Warwick, Department of Economics. Available at http://warwick.ac.uk/cage/manage/publications/188-2014_harrison.pdf
- Hobson, J. A. 1902. Imperialism: A Study. New York. Available online.
- Lenin, V. I. 1916. Imperialism, the Highest Stage of Capitalism. Petrograd. Available online.