Economic Expansion: Hobson Flashcards
What type of historian was Hobson?
Anti-imperialist/ Marxist
What is economic imperialism?
Growth of empire to access raw materials for British markets and industries and it therefore declined when the empire became a burden (but it was more due to the rise of national opposition and external circumstances which changed the strategic priorities)
Where did the empire expand most rapidly during the age of new imperialism?
Asia and Africa
What theory does Hobson work rely on?
Surplus capital theory - Gap between the rich and poor meant that there was underconsumption domestically so the surplus and overproduction of goods had to be moved abroad
In Hobsons theory, why did imperial expansion occur?
Investors demanded the government protect their investments and therefore the greed of private financiers
How did Hobson describe the imperial engine?
‘Finance is the imperial engine, directing the energy and determining the work’
What did Hobson think imperialism led to?
Inequality
Injustice
Enforced using violence
Where did Hobson believe were the most lucrative (profitable) markets?
‘Newly acquired territories’
How does Hobsons theory explain the scramble for Africa?
Possibility for profit
How did Ferguson view Hobsons approach?
‘Over simplification’
How did Eldrige criticise Hobsons view?
He said that Hobson overestimated the number of investors who had excess capital
What are the main criticisms of this theory?
Hobson focused more of his attention on newly acquire territories an ignored the importance of the US and Latin America, where large amounts of investment was going
Ignored strategic factors but strategic was all to protect economic interests
Returns from Africa and Asia were limited
How could the situation in Transvaal be used to counter Hobson?
Occupation of Transvaal was to stop a Boer domination of the Cape and therefore a protecting Indian trade
When had overseas investment picked up but when did Hobson focus on?
Hobson focuses on 1875-95 but investment only picked up after 1900
What company never paid dividends?
Imperial British East Africa company
