The Great Illusion · Chapter
The Impossibility of Confiscation explained
This chapter argues that under modern economic conditions, the conquest and confiscation of an enemy's property is no longer possible or advantageous.
What happens
This chapter argues that under modern economic conditions, the conquest and confiscation of an enemy's property is no longer possible or advantageous. The author explains that the division of labor and the resulting financial interdependence of nations mean that any attempt to loot a modern state's wealth would backfire, causing greater damage to the conqueror than any gain. Using the example of a hypothetical German invasion of England, he demonstrates that sacking the Bank of England would ruin German credit and trade. The chapter concludes that the wealth of a community is intangible and cannot be seized, making conquest futile.
Themes in this chapter
Economic Futility of War
The chapter demonstrates that conquest and confiscation are economically impossible and self-defeating under modern conditions.
Interdependence of Nations
Highlights the financial and commercial solidarity that makes nations dependent on each other, preventing the seizure of wealth.
Illusion of Political Power
Shows that military power and conquest no longer confer tangible economic advantages, exposing the illusion of political domination.
Characters to notice
- Norman Angell
Author of the chapter, presenting the argument against the possibility of confiscation.
Key passages
“What would be the result of such an action on the part of a German army in London? The first effect, of course, would be that, as the Bank of England is the banker of all other banks, there would be a run on every bank in England, and all would suspend payment.”
If the German army looted the Bank of England, it would trigger a bank run across England, causing all banks to suspend payments.
Illustrates the immediate financial chaos that would result from such an act.
“It is as certain as anything can be that, were the German army guilty of such economic vandalism, there is no considerable institution in Germany that would escape grave damage—a damage in credit and security so serious as to constitute a loss immensely greater than the value of the loot obtained.”
If the German army committed such economic vandalism, every major German institution would suffer severe damage, far exceeding the value of any loot.
Emphasizes the self-destructive nature of confiscation in an interdependent world.