As said above, the War was conducted to benefit a small number of elite people. This was often a problem because wealth was not evenly distributed which led to another problem for Britain and her Empire – Poverty.
Although Britain thought she had “discovered” poverty at the start of the 20th Century, poverty has always been present in Britain. From the noisome squalors of East London to the poor states of the industrial areas – poverty was a future threat to Britain and her Empire. Ever since the early 1800’s, there were large families, low wages, unemployment and old age. Most of the volunteers for the Boer war had been rejected because they were unfit – another evidence of the poor sanitation and health problems of the poverty-stricken group of people. A study carried out during the early 1900’s showed that 30% of the working class was in poverty. Furthermore, there were cases in which people were unable to work because of poor health – thus ruining the profits of Britain. Moreover, the poverty in Britain also led to changes in the political world. After Britain “discovered” poverty, the Liberal welfare reforms were carried out from 1908 onwards. This led to the emasculation of the powers of the House of Lords and led to the demise of the Liberals where the Labour Party seized power. This however, did not reduce the effects of poverty. Poverty was still happening in Britain and was a problem which was ‘real’ and clearly not ‘imagined’ as it was constantly present in Britain.
The effects of the Boer War and poverty were subtle – they were felt as the Empire aged. The resonances of the War and the shocking poverty certainly brought a wave of incalculable problems which Britain must face in the early 20th Century. As the Boer War brought a wave of ‘panic attacks,’ poverty on the other hand reduced profits and allowed Britain’s “competitors” – USA and Germany – to catch up.
Britain’s loss of supremacy followed by the rise of USA and Germany was indeed a “real” problem which brought problems for Britain and her Empire at the start of the 20th Century. By 1868, Britain was known as the “workshop of the world.” At the end o the 19th Century, however, economic matters were under attack. Although Britain thought she had “imagined” a slowing economy in Britain – she was not aware of the rapid economic growth in Germany and the USA. This problem was a powerful blow to the imperial façade of the Empire as this should be a problem British people could oversee. Economic growth in Britain started to slow down by 1873. Therefore, this problem was obviously not “imagined.”
Britain’s “traditional” rival – Germany – overtook Britain’s economy by the early 1900. The annual growth rate per capita GDP of Germany was higher than Britain by 1913. Furthermore, British exports declined – leading to economic problems at the start of the 20th Century. Recorded data showed that Britain produced one-third of the world’s goods in 1870. In 1913, Britain was only producing 14% while USA produced 35% and Germany 16% of the world’s goods. One factor which led to Britain’s lose of economic supremacy was her need to continue the policy of free trade. While Germany and USA exploited natural resources and imported less, Britain continued the policy of free trade whilst others posed tariffs of British goods (after 1880s.) This exacerbated the current economical problem.
Britain’s loss of supremacy wasn’t only her economic power, but also her military and naval powers. In Germany, her navies were growing claiming more power at seas whilst in USA, military technology was increased greatly. Britain indeed felt the threat and the change in world powers and she was no longer indeed the ‘Number One Nation.’ This was a problem which was far more ‘real’ than imagined.
In conclusion, the problems were far more real than imagined. The Boer War shattered 19th Century complacencies and set the scene for future problems up to the First World War. Poverty, on the other hand, revealed the shocking reality behind the glittery glamour of the British Empire and brought incalculable implications for the future of the Empire. The rise of Germany and USA was another problem which led to the loss of British supremacy, especially her economic power. Most of these problems brought more problems to mount up which gave the leaders in Britain in the early 20th Century the impression that they had ‘imagined’ these problems. In reality the problems which they faced in the early 20th Century were the “after-shock” effects of the previous problems. Therefore, the problems were, in actual fact, real. To concluded, I think that the statement in the question is invalid on most of the problems faced were real.