Originally posted by Johnny Canuck
The colonies did give Britain some benefit through the First World War. For example, having easy access to Canadian wheat ensured that Britain could never have its food sources cut off by anything other than a direct blockade. Also, the Empire was a major destination of British investment, which could be turned around to support a trade deficit during wartime. Nearly 50% of British overseas investment was within the Empire. Also, over 50% of British exports were to destinations outside Europe & North America. By comparison, the German percentage was 17%. The Empire was important; not overwhelmingly important, but it was a factor.
Also, Britain did not get "its ass whooped" economically by the US & Germany. The British economy continued to expanded constantly prior to 1914, & by 1914 it was still, by any set of figures I have ever seen, was still the leading exporting nation. Also, the British were still far and away the world's banker, a very important factor. Yes, the Americans & Germans were catching up to the British, but they had still a bit more to go to surpass the British.
No way. By 19914 US GDP was almost three times that of Britain, so I do not see how Britain was top dog economically just cause it was an investor nation and because it had more exports (right now Germany expots almost as much as US - does it make it an economic powerhouse comparable to US?). Along similiar lines, German GPD has surpassed the British aroun 1910 as well. They produced twice as much still, dominated the newer industries (such as chemicals), and almost caught up to Britain exportwise. So I do not see how they had a bit more to go to surpass the British. As WWI showed, Germany was more powerful economically, because without US help economically, British war effort after 1916 would have been severely damaged, while the German war machine funcitoned pretty well till 1918, despite the blockade.