The United States and Britain's Economic Policy

Abstract

T HERE is much confusion in American thought concerning the postwar economic policy of Great Britain. It is recognized that her problem in international trade and finance is a difficult and delicate one. Some think that she would be glad to have loans or a continuation of lend-lease in order to facilitate the transition to a peacetime economy. Some who believe this favor offering the help which they thing is required. Others are wary lest by some ingenious fiscal magic Britain may acquire a right to American help without conditions which our bankers might wish to impose. What does the United Kingdom actually want from this country? Does she favor stabilization of exchanges, or does she want to be free for competitive exchange depreciation? How fearful is she of competition by American exporters in the world market? Does she wish to work toward a world-wide economy of multilateral and free trade, or does she expect to erect barriers with discriminatory practices of various kinds, imperial preference and the like? Before it is possible to understand the attitude of Englishmen towards international economic policy, it is necessary to know something about the kind of society they expect to create for themselves. Ideas about international trade and finance are frequently expressed as if they were abstractions derived from study of policies which would be desirable for all the people of the world regarded as a single unit; but such ideas seldom govern the action of individual nations unless they harmonize with what these nations conceive to be in their own interest. Moreover, in democratic countries especially, no foreign policy can be long or effectively pursued unless it can be stated in terms which will mean something to the majority of the people; and the majority of the people, being concerned mainly about matters that appear to affect their personal lives, naturally think more about domestic affairs than they do about world organization. This is as true in Britain as it is in the United States. The postwar international economic policy of Great Britain will be determined by considerations arising out of the plans of the British for the improvement of life within the United Kingdom.