The lost lessons from history’s economic mistakes

In 'The Economic Consequences of Mr. Churchill', John Maynard Keynes critiques Britain's decision to return to the gold standard in 1925. Keynes argued that this policy would lead to economic overvaluation and chronic unemployment, as export industries would struggle to reduce prices without corresponding reductions in wages and other costs. His predictions were later vindicated when Britain abandoned the gold standard in 1931.

In 'The Great Illusion,' Norman Angell argues that the economic costs of war are so high that no nation can hope to gain from it. He contends that modern economic systems, based on trade and contract law, make war futile because conquest does not lead to economic benefits. The book refutes the common belief that military power results in greater wealth and instead posits that advanced economies can only generate value in the absence of military conflicts. Angell also discusses the psychological and moral aspects of war, emphasizing that the nature of modern capitalism makes nationalist sentiment among capitalists irrelevant. Despite its publication just before World War I, which seemed to contradict his thesis, the book remains a significant work in the field of international relations and peace studies.