How strong was Germany in 1900?

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How strong was Germany in 1900?

Germany in 1900 was under the influence of the Second Reich with reforms made economically, socially and politically. Economically, there were drawbacks but also a whirlwind boom period with the introduction of Kartels, which protected a German association of manufacturers or suppliers maintaining prices at a high level and restricting competition. In politics there were a number of factors which resulted in a major realignment. Society in Imperial Germany had made advances but there were also tensions by 1900, where class divisions were prominent and social mobility could be seen as stagnant. Imperial Germany was a place where economic development, social change, and cultural achievement were unmatched.

By 1900, Germany had the largest economy in Europe. One important factor in German economic growth was Kartels. German industry reacted to increased foreign competition by demanding protection and forming Kartels, controlling prices and working conditions. Kartels were of enormous importance in the German economy as they were able to take control of the economies of scales and by 1900 there were over 275 Kartels. Exports of Germany had quadrupled in value from the 1870s to the 1900s. The extension of Kartels also allowed more funds to be directed into research and development, leading Germany to become the world leader in chemicals and dyes and discovering important breakthroughs. With a increasing population, white collar workers and a growing pool of labour, this enabled the production of raw materials to grow rapidly with developments in electrical, chemical and precisions engineering industries. 
However, there were also drawbacks in Germany’s economy. Germany’s agriculture was neglected with land not being cultivated leading to a fall in income, upsetting peasants. The Kartels also had a negative impact as they kept wages low and prices high creating controversy between different parties with different ideologies about the price. Bismarck hoped the Kartels would lead to a form of “corporatism” in Germany which would undermine the role of the Reichstag by narrowing the gap between the left and right. The opposite results happened as there was a hostility created and the Socialist Party grew with favour. There were tensions for different parts of society but Germany was able to establish itself as a world leader in industrialisation with a powerful and rapid growing economy.  

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Political processes also underwent dramatic change during the Wilhelmine era. Politically, the state of Prussia enjoyed a privileged status in the federal system with Prussia was too powerful to out rule by the Bundesrat. Voting in Germany was also archaic, where it divided electors into three classes based on the amount of tax paid. The discrimination allowed aristocracy (Junkers) and big businesses to have more political influence. The former chancellor of Germany, Bismarck, relied on coalitions and alliances of major parties which became increasingly worrying as the Reichstag became more fractious and chancellor post Bismarck struggled to control it. The Kaiser, ...

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