Economic imperialism of world war one

Economic imperialism of world war one

Lenin famously asserted that the worldwide system of imperialism was responsible for the war. In this he drew upon the economic theories of English economist John A. Hobson who had earlier predicted the outcome of economic imperialism, or unlimited competition for expanding markets, would lead to a global military conflict in his 1902 book entitled 'Imperialism'[1]. This argument proved persuasive to leftists in the immediate wake of the war and helped explain the popularity of Marxism and Communism among those who suffered most in the conflict. Lenin's 1917 pamphlet "Imperialism: The Highest Stage of Capitalism" [2] made the argument, specifically, that large banking interests in the various capitalist-imperialist powers had pulled the strings in the various governments and led them into the war. Related to the idea of economic "shadow forces" working behind the scenes to escalate the conflict, was a thesis, particularly popular in the U.S., that various arms dealers and military industries had led the Great Powers into the war, this is the so-called "Merchants of Death" thesis. However, in the context of the period, it is unclear how these industries had a direct and specific influence on policy-making, and how this sector of the economy was more influential than other industrial and trade sectors, which would presumably be damaged through disrupted trade flows and the loss of markets by a large-scale global war.