My efforts to bring the great J A Hobson out of obscurity, that people might use him as a guide to the motivation driving the Iraq war and other US foreign policy, are having some success. Moon of Alabama has posted an extract including this statement:

the adoption of Imperialism thus serves the double purpose of securing private material benefits for favoured classes of investors and traders at the public cost, while sustaining the general cause of conservatism by diverting public energy and interest from domestic agitation to external employment.

http://www.moonofalabama.org/2007/08/imperialism-a-s.html

Let me post another key section. Hobson, an economist, outlines economic statistics and analysis to prove that the costs of the British Empire 1870 to 1900 had far outweighed any economic benefit to the economy as a whole. He goes on to state this:

Seeing that the Imperialism of the last three decades is clearly condemned as a business policy, in that at enormous expense it has procured a small, bad, unsafe increase of markets, and has jeopardised the entire wealth of the nation in rousing the strong resentment of other nations, we may ask, “How is the British nation induced to embark upon such unsound business?” The only possible answer is that the business interests of the nation as a whole are subordinated to those of certain sectional interests that usurp control of the national resources and use them for their private gain. This is no strange or monstrous charge to bring; it is the commonest disease of all forms of government. The famous words of Sir Thomas More are as true now as when he wrote them: “Everywhere do I perceive a certain conspiracy of rich men seeking their own advantage under the name and pretext of the commonwealth.”

I.IV.1

Although the new Imperialism has been bad business for the nation, it has been good business for certain classes and certain trades within the nation. The vast expenditure on armaments, the costly wars, the grave risks and embarrassments of foreign policy, the stoppage of political and social reforms within Great Britain, though fraught with great injury to the nation, have served well the present business interests of certain industries and professions.

I.IV.2

It is idle to meddle with politics unless we clearly recognise this central fact and understand what these sectional interests are which are the enemies of national safety and the commonwealth. We must put aside the merely sentimental diagnosis which explains wars or other national blunders by outbursts of patriotic animosity or errors of statecraft. Doubtless at every outbreak of war not only the man in the street but the man at the helm is often duped by the cunning with which aggressive motives and greedy purposes dress themselves in defensive clothing. There is, it may be safely asserted, no war within memory, however nakedly aggressive it may seem to the dispassionate historian, which has not been presented to the people who were called upon to fight as a necessary defensive policy, in which the honour, perhaps the very existence, of the State was involved.

I.IV.3

The disastrous folly of these wars, the material and moral damage inflicted even on the victor, appear so plain to the disinterested spectator that he is apt to despair of any State attaining years of discretion, and inclines to regard these natural cataclysms as implying some ultimate irrationalism in politics. But careful analysis of the existing relations between business and politics shows that the aggressive Imperialism which we seek to understand is not in the main the product of blind passions of races or of the mixed folly and ambition of politicians. It is far more rational than at first sight appears. Irrational from the standpoint of the whole nation, it is rational enough from the standpoint of certain classes in the nation. A completely socialist State which kept good books and presented regular balance-sheets of expenditure and assets would soon discard Imperialism; an intelligent laissez-faire democracy which gave duly proportionate weight in its policy to all economic interests alike would do the same. But a State in which certain well-organised business interests are able to outweigh the weak, diffused interest of the community is bound to pursue a policy which accords with the pressure of the former interests.

I.IV.4

In order to explain Imperialism on this hypothesis we have to answer two questions. Do we find in Great Britain to-day any well-organised group of special commercial and social interests which stand to gain by aggressive Imperialism and the militarism it involves? If such a combination of interests exists, has it the power to work its will in the arena of politics?

I.IV.5

What is the direct economic outcome of Imperialism? A great expenditure of public money upon ships, guns, military and naval equipment and stores, growing and productive of enormous profits when a war, or an alarm of war, occurs; new public loans and important fluctuations in the home and foreign Bourses; more posts for soldiers and sailors and in the diplomatic and consular services; improvement of foreign investments by the substitution of the British flag for a foreign flag; acquisition of markets for certain classes of exports, and some protection and assistance for trades representing British houses in these manufactures; employment for engineers, missionaries, speculative miners, ranchers and other emigrants.

I.IV.6

Certain definite business and professional interests feeding upon imperialistic expenditure, or upon the results of that expenditure, are thus set up in opposition to the common good, and, instinctively feeling their way to one another, are found united in strong sympathy to support every new imperialist exploit.

How do they do it?

In view of the part which the non-economic factors of patriotism, adventure, military enterprise, political ambition, and philanthropy play in imperial expansion, it may appear that to impute to financiers so much power is to take a too narrowly economic view of history. And it is true that the motor-power of Imperialism is not chiefly financial: finance is rather the governor of the imperial engine, directing the energy and determining its work: it does not constitute the fuel of the engine, nor does it directly generate the power. Finance manipulates the patriotic forces which politicians, soldiers, philanthropists, and traders generate; the enthusiasm for expansion which issues from these sources, though strong and genuine, is irregular and blind; the financial interest has those qualities of concentration and clear-sighted calculation which are needed to set Imperialism to work. An ambitious statesman, a frontier soldier, an overzealous missionary, a pushing trader, may suggest or even initiate a step of imperial expansion, may assist in educating patriotic public opinion to the urgent need of some fresh advance, but the final determination rests with the financial power. The direct influence exercised by great financial houses in “high politics” is supported by the control which they exercise over the body of public opinion through the Press, which, in every “civilised” country, is becoming more and more their obedient instrument. While the specifically financial newspaper imposes “facts” and “opinions” on the business classes, the general body of the Press comes more and more under the conscious or unconscious domination of financiers. The case of the South African Press, whose agents and correspondents fanned the martial flames in this country, was one of open ownership on the part of South African financiers, and this policy of owning newspapers for the sake of manufacturing public opinion is common in the great European cities. In Berlin, Vienna, and Paris many of the influential newspapers are held by financial houses, which use them, not primarily to make direct profits out of them, but in order to put into the public mind beliefs and sentiments which will influence public policy and thus affect the money market. In Great Britain this policy has not gone so far, but the alliance with finance grows closer every year, either by financiers purchasing a controlling share of newspapers, or by newspaper proprietors being tempted into finance. Apart from the financial Press, and financial ownership of the general Press, the City notoriously exercises a subtle and abiding influence upon leading London newspapers, and through them upon the body of the provincial Press, while the entire dependence of the Press for its business profits upon its advertising columns involves a peculiar reluctance to oppose the organised financial classes with whom rests the control of so much advertising business. Add to this the natural sympathy with a sensational policy which a cheap Press always manifests, and it becomes evident that the Press is strongly biassed towards Imperialism, and lends itself with great facility to the suggestion of financial or political Imperialists who desire to work up patriotism for some new piece of expansion.

I.IV.40

Such is the array of distinctively economic forces making for Imperialism, a large loose group of trades and professions seeking profitable business and lucrative employment from the expansion of military and civil services, from the expenditure on military operations, the opening up of new tracts of territory and trade with the same, and the provision of new capital which these operations require, all these finding their central guiding and directing force in the power of the general financier.

I.IV.41

The play of these forces does not openly appear. They are essentially parasites upon patriotism, and they adapt themselves to its protecting colours. In the mouths of their representatives are noble phrase, expressive of their desire to extend the area of civilisation, to establish good government, promote Christianity, extirpate slavery, and elevate the lower races. Some of the business men who hold such language may entertain a genuine, though usually a vague, desire to accomplish these ends, but they are primarily engaged in business, and they are not unaware of the utility of the more unselfish forces in furthering their ends. Their true attitude of mind is expressed by Mr. Rhodes in his famous description of “Her Majesty’s Flag” as “the greatest commercial asset in the world.”*20

The entire book is available online.

http://www.econlib.org/library/YPDBooks/Hobson/hbsnImp.html

It is deeply saddening to me how much of the great heritage of Liberal thought is now neglected. I do hope you will take a look and see just how little we have learnt in the ensuing 100 years.