Colonialism has become a hot topic in recent years. The hatred directed at Israel at universities in the United States and Europe is ideologically based on “post-colonialist” theory, which has become something of a political religion, especially among “woke” anti-capitalists.

But to what extent is the thesis that capitalism is founded on colonialism really true? The German-British economist Kristian Niemietz from the prestigious London Institute of Economic Affairs has now investigated this question in a pleasingly short (70 pages) and pleasingly fact-laden study: “Imperial Measurement. A Cost-Benefit Analysis of Western Colonialism.”

This insightful little book should be required reading for all “post-colonial” students, although they probably prefer to read books that align with their pre-existing beliefs, and the facts presented here could well make them feel insecure. In his book, Niemietz conducts an economic analysis that compares the costs and benefits of colonialism for various countries including Great Britain, France, Germany, and Belgium. While exact historical data are difficult to pinpoint, all serious estimates indicate that colonialism was more of an economic burden than a benefit for countries like Great Britain, France, and Germany. Historically, this was also the conclusion drawn by scientists and politicians as diverse as Adam Smith and Otto von Bismarck.

So, despite the lack of significant economic benefits – possibly even losses – why did countries continue to pursue colonial policies? National prestige and the influence of........

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