I have just been reading online "Britain 1939-1945; The Economic Cost of Strategic Bombing", by John Fahey at
http://ses.library.usyd.edu.au/handle/2123/664
This remarkable and original thesis of over 450 pages presents detailed evidence that BC cost the British taxpayer the enormous sum of £2.803 billion (£2,803,942,474) to £3.5 billion - out of a total defence expenditure of £23.1 billion and total government expenditure of £28.7 billion.
Britain was bankrupted by the war. Its wealth declined by £7 billion while its external liabilities increased by £2.9 billion - by coincidence the exact cost of BC. Britain ended the war as a client of the USA.
The 7,377 Lancasters that were built cost £477 million. It is interesting to me that the 7,368 Churchill tanks that were built cost by comparison only £82 million. Switching the money spent on Lancasters to Churchills would have given the Army 43,000 of them. This would have enhanced the chance of ending the war in 1944.
Another major point made by Fahey is that 30 to 40% of the bombs dropped by BC failed to explode because of faulty fuses, and were wasted. To this waste can be added those that were dropped on the open countryside. Therefore well over half of the £2.8 to £3.5 billion spent on BC was wasted, including half the 73,471 BC casualties, enough manpower to form three armoured divisions.
Does anyone know of any comment on, or critical review of, Fahey's work and conclusions?
Tony