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What caused the First World War? Part II – The July Crisis

[This is the text of a talk I gave on 20 March to the 6/20 Club in London. See also Part I and Part III.]

So, what caused this catastrophe? If any of you are unfamiliar with the story it might be an idea to get out your smart phones out and pull up a map of Europe in 1914. When you do so you will notice that although western Europe is much the same as it is today, central Europe is completely different. There are far fewer borders and a country called Austria-Hungary occupies a large part of it.

As most of you will know on 28 June 1914, Archduke Franz Ferdinand, heir presumptive to the Austrian throne was assassinated in Sarajevo the capital of Bosnia which he was visiting while inspecting army manoeuvres. Bosnia at the time was a recently-acquired part of the Austrian Empire having been formally incorporated in 1908. Although the Austrians didn’t know this at the time – though they certainly suspected it – Gavrilo Princip, the assassin, and his accomplices had been armed and trained by Serbia’s rogue intelligence service. I say “rogue” because the official Serbian government seems to have had little control over the service run by one Colonel Apis. Apis, as it happens, was executed by the Serbian government in exile in Greece in 1917 and there’s a definite suspicion that old scores were being settled.

Oddly enough, the Austrians weren’t that bothered by the assassination of Franz Ferdinand the man. Apart from his family no one seems to have liked him much. His funeral was distinctly low key although there was a rather touching display by about a 100 nobles who broke ranks to follow the coffin on its way to the station. More importantly, Franz Ferdinand was one of the few doves in a sea of hawks. Most of the Austrian hierarchy wanted war with Serbia. Franz Conrad von Hötzendorf, the Chief of Staff had advocated war with Serbia over 20 times. Franz Ferdinand did not want war with Serbia. He felt that Slav nationalism was something that had to be accepted and the only way of doing this was to give Slavs a similar status to that Hungary had obtained in 1867. So his death changed the balance of power in Vienna. Much as the hierarchy were not bothered by the assassination of Franz Ferdinand the man, they were bothered by the assassination of Franz Ferdinand the symbol – the symbol of Austria’s monarchy and Empire, that is. The Serbs wanted to unite all the South Slavs: that is Slovenes, Croatians, Bosnians, Montenegrins and Macedonians in one state. However, most of these peoples lived in Austria. Now, if the South Slavs left there was no reason to think that the Czechs, Poles, Ruthenes or Romanians who were also part of the Austrian Empire would want to stay. Therefore, it was clear that Serbia’s ambitions posed an existential threat to Austria (correctly as it turned out). The solution? crush Serbia. And now the Austrians had a pretext.

Unfortunately (for the Austrians), Serbia had an ally: Russia. Russia regarded itself as the protector of the Slavs and Serbia in particular. But Austria also had an ally: Germany. Germany had spent the previous 20 years antagonising Britain, France and Russia and so was glad to have any ally at all. The fact that Austrians spoke German at a time when racial ideas were gaining ground was also a factor. But Russia itself had an ally: France. This was something of a marriage of convenience given that France was a democratic republic and Russia was an autocracy. But allies they were. All this meant that if Austria went to war with Serbia, Germany could find herself at war with France and both Austria and Germany could find themselves at war with Russia.

→ Continue reading: What caused the First World War? Part II – The July Crisis

Samizdata quote of the day

On the NHS, that has gone far beyond a joke. It is not enough to value the idea of universal healthcare free at the point of use as a concept – one must “love the NHS”. Doctors and nurses are not doing their job in difficult circumstances – they’re fighting on the front line. Nobody wants to reform the NHS – Labour leader Ed Miliband wants to “rescue” it. The debate is uncritical, nostalgic, what The Economist called “ideological, ahistorical bunkum” – and nothing short of cowardly.

Andy Burnham, Labour’s Shadow Health Secretary, has warned that there are “24 hours to save the NHS” so often over the past five years that people are beginning to doubt his grasp of Babylonian concepts of time.

Andy Silvester

Seems perfectly reasonable to me…

I was going to label this as “humour” but it is more of a “future documentary” really.

Sad Puppies are taking back Science Fiction

Many thanks to Rand Simberg who has been covering this ongoing battle…

The Elites fight tooth and claw and with whatever lying, cheating, libel and threats they can get away with… and the more you shine the light on them while they do so, the more they self-destruct.

I suspect the Sad Puppies have been having the time of their life giving these people all the rope they need to make total idjts of themselves. So bring out a bag of popcorn, sit back and watch the battle.

What a truly horrifying thought!

A overtly Marxist Guardianista wants to replace Jeremy Clarkson. The Horror. The Horror! You would think someone with a Russian name would know how well Marxism turned out the last time…

Private asteroid search telescope rises from the ashes

Last fall when the Orbital Sciences Corporation rocket blew up in spectacular fashion, one of the payloads that went with it was the Arkyd space telescope nanosat.

Unlike their giant billion dollar big brothers, the Arkyd group use modern technology and methods to the fullest. They have the flexibility of a small company and they do things faster, better and cheaper. So much so that they have a replacement nanosat not just built, but ready for launch on Monday’s SpaceX CRS-6 flight to the International Space Station (ISS).

From there, it will be ejected from the Japanese Kibo module at some point in the coming months when ISS crew time is available. Here is Planetary Resources President Chris Lewicki giving the details. Just for full disclosure, I put a hundred dollars where my mouth is during their Kickstarter about two years ago.

Samizdata quote of the day

In the late 1970s, the top rate of income tax in the UK was over 80 per cent and the top one per cent of income tax payers paid just 11 per cent of the total. Rates are dramatically lower today, and the one per cent paid 27.7 per cent of the 2011/12 total. The idea you get more money out of the rich by putting the screws on runs counter to the facts.

Marc Sidwell

By what reasonable definition are the Tories “conservatives”?

Yet again the utterly dismal David Cameron is being generous with other people’s money:

David Cameron’s plan to offer workers three days’ paid leave for volunteering has come under fire from the business world. The Prime Minister has pledged that if the Tories win the General Election up to 15m workers in the public and private sector will be able to take paid time off for volunteering. In the private sector, only companies with more than 250 employees will be subject to the scheme. Communities secretary Eric Pickles got a rough ride on the Today programme this morning as he struggled to explain who would bear the costs of the scheme and what level of compulsion would be involved.

Is Labour even worse that this dismal shower? Yes, without a doubt, but the only difference is how fast the state marches, not the direction in which it marches. I am old enough to remember when the Tories under Edward Health nationalised companies, so even historically it is hardly like comparing chalk and cheese. No wonder there is talk of making voting compulsory, given there is hardly any difference between the main parties.

What caused the First World War? (Part I)

[This is the text of a talk I gave a couple of weeks ago to the 6/20 Club in London. As you will see this introductory part is mainly about 1915. Part II is here]

By March 1915 the people of the United Kingdom were beginning to realise that the war was going to be much longer, involve many more men and be more expensive than they had previously imagined.

The military correspondent of the Times was a man called Charles à Court Repington. He was normally pretty astute. In a recent article he had argued that the war on the Western Front had become an attritional struggle. As there was a line of trenches stretching from Switzerland to the English Channel, there were no flanks to turn and no prospect of a war of manoeuvre. The two sides were of roughly equal quality. It had become a war where progress could only be made by material means: by being able to put more guns, shells, bullets and men on the battlefield than the enemy.

This massively favoured the Allies: France, Britain, Russia and Belgium. Combined they had more people and more industry than the Central Powers. They were also less good at “cleverness” in warfare – so a material struggle also played into their hands. Their victory was inevitable. But that didn’t mean it was going to come soon.

But at the time, the British in particular, were short of everything. This would come to a head soon afterwards when Repington, again, claimed that the Battle of Neuve Chapelle could have gone much better had the British had enough shells. This would lead almost immediately to the creation of the Ministry of Munitions under Lloyd George.

By this time food prices were beginning to rise. Some foods were already up by 50%. Given that a large proportion of the average person’s income went on food this was inevitably causing hardship. Worse still, this rise took place before the Germans declared the waters around the UK a warzone. I must confess I don’t entirely understand the ins and outs of this but essentially this means that submarines could sink shipping without warning. The upshot was that rationing would be introduced later in the war.

Government control also came to pubs with restricted opening hours. It would even become illegal to buy a round.

So far the Royal Navy had not had a good war. It had let the German battle cruiser Goeben slip through its fingers in the Mediterranean and into Constantinople where it became part of the Ottoman navy which attacked Russia. An entire squadron was destroyed off the coast of Chile and even the victories were hollow. At the Battle of Dogger Bank the chance to destroy a squadron of German battle cruisers was lost due to a signalling error.

But the man at the top, one Winston Churchill, was undeterred. He thought the Navy could take the Dardanelles, take Constantinople and knock the Ottoman Empire out of the war alone. Repington thought – or at least, I think he thought – that this was nonsense.

The Navy had, at least, for the time being deterred the German Navy from shelling any more coastal towns. Now the threat came from the Zeppelins high above.

The Army, traditionally the junior service, was having a much better war. But The Times still records about a hundred deaths a day and this at a quiet time when the Army in the field was still small. This was not going to last long. About 2 million men had volunteered and the job of turning them into useful soldiers had started.

Mind you, every cloud has a silver lining. Perhaps, given events earlier, that should be every eclipse has a corona. In July 1914 Ireland was on the verge of civil war. The First World War came along in the nick of time and for the duration of the war the main participants had agreed to bury the hatchet. Similarly, the suffragettes called off their campaign of destruction and there are far fewer strikes – Britain having been plagued by them in the years leading up to the war.

But as we know things were only going to get worse. In all the war lasted four years, killed 10 million people and saw the birth of a totalitarian communist regime. Something like 5 million Britons served on the Western Front. There they experienced trenches, mud, barbed wire and shelling at a minimum. Others would have experienced gas, machine-gun fire and going “over the top”. A million never came back. And for what? Twenty years of political instability followed by the experience of having to do it all over again in the Second World War.

In Britain we tend to think of the First World War as being worse than the Second. This is because, almost uniquely amongst the participants, British losses in the First World War were worse. It is also worth bearing in mind that Britain’s losses in the First World War were much lower than everyone else’s. France lost a million and a half, Germany 2 million. Russia’s losses are anyone’s guess. For all the talk of tragedy and futility, the truth is that Britain got off lightly.

For many libertarians the First World War is particularly tragic. They tend to think (not entirely correctly) of the period before it as a libertarian golden age. While there was plenty of state violence to go around, there were much lower taxes, far fewer planning regulations, few nationalised industries, truly private railways and individuals were allowed to own firearms. If you were in the mood for smoking some opium you needed only to wander down to the nearest chemist.

The Times 8 March 1915 p8

The Times 8 March 1915 p8

The UK’s “non-domicile” tax regime and Labour’s desire to end it

The Labour Party has stirred up the usually rather complacent wealth management sector in the UK by vowing to end the so-called “non-dom” system under which a foreigner who wants to spend some time in the country can avoid paying tax on all his/her worldwide income and capitals gains so long as this money is kept outside the UK. If such a non-dom has lived in the country for seven years, they must pay an annual levy and depending on the duration, that annual levy is as high as £90,000. A study by University College, London, published in 2013, concluded that the system brought in more revenue for the UK than was being lost by the absence of such a system.

At face value, the non-dom system might look like a great deal for a person who is worth tens of billions of pounds, dollars or whatever and who “only” pays several thousands per year to live in the UK. But if such a person’s wealth has been largely generated outside the country and is kept outside it, what is unfair about this position? If Mr Stinking Rich brought those billions to the UK, he would have to pay a thudding great tax bill. Ed Miliband, leader of the Labour Party, must know that, or if he doesn’t, he is being reckless. The whole idea that a person should pay tax to the country of his/her birth regardless of having not lived there for a period – as is the case with the odious worldwide US tax regime – cuts against the idea that one should pay taxes that focus on where you actually live.

Matthew Sinclair has a good piece here on the issue.

From a point of narrow party politics, I suppose Ed Miliband and his colleagues think they are being clever at playing the class war card and hope to trap opponents by having to defend the non-dom system. I notice that whenever a weapons-grade knob such as Miliband makes such a crowd-pleasing proposal, it is seen as a “trap” and that therefore the other side are told that it isn’t wise to oppose it. But this sort of cowardice-as-a-tactic approach merely favours the bully. A braver, and ultimately better, argument is to state that it is in the UK’s interest to encourage internationally-minded investors and entrepreneurs (so long as they are not criminals and jihadi nutcases) to come to the UK and enrich themselves and everyone else. To pander to the zero-sum, dog-in-the-manger mindset of Miliband and others is also foolish.

There is also a broader point to be made here: such attacks represent, at the margins, part of a rollback of globalisation, of the free movement of capital and people, a process from which London, as a global financial centre, has been a mighty beneficiary.

Far too many people in the banking and financial markets more broadly have fought shy of voicing their concerns about the demented nature of so much “banker-bashing” and attacks on inequality recently. Consider the respect granted to Thomas Piketty’s fatally flawed claims about inequality and his call for draconian taxes on capital. It is sometimes stated – I heard such a statement recently at a gathering – that “neo-liberals” (ie, classical liberals) have “won” the argument and that we now need to move on. How complacent that is. The arguments for freedom and capitalism are being lost in the UK, or at the very least, they aren’t being made very effectively.

Samizdata quote of the day

In brief, the SNP’s dislike of the UK is more that the UK might be a brake on their statism than anything else. Hatred of the English is actually hatred of the (vestigial) freedom that England represents.

– Commenter Mr. Ed

Samizdata quote of the day

Due to come into force in August 2016, the Named Person initiative is truly dystopian. Once, it was only abandoned or orphaned children who became charges of the state; now, all Scottish children will effectively be wards of the state under a new, vast system of, in essence, shadow parenting. In an expression of alarming distrust in parents, and utter contempt for the idea of familial sovereignty and privacy, the state in Scotland wants to attach an official to every kid and to keep tabs on said kid’s physical and moral wellbeing.

There’ll be a state spy in every family. In Scotland, Big Brother is not only watching you (it was recently revealed that Scotland has 4,114 public-space CCTV cameras and “camera vans,” which drive through towns filming the allegedly suspect populace); he’s also watching your kids.

Brendan O’Neill