How Successfully in the period 1870 to 1914 did the ruling elites of Germany cope with the consequences of social and economic change?

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How Successfully in the period 1870 to 1914 did the ruling elites of Germany cope with the consequences of social and economic change?

Introduction

The period 1870 to 1914 involved significant social and economic pressures for change, not least in Germany.  This essay will analyse how both Bismarck and Wilhelm II responded to these pressures and will examine how successful their responses were in coping with this change.

A key change was the rapid industrialisation that put Germany ahead of Britain as Europe’s leading industrial power by 1914.  This was reflected in the soaring of coal production, steel production, and the railway network, for example. Coal production grew from 89 million tons in 1890 to 277 million tons in 1914. However, it could be argued that Bismarck did not play an active role in economic policy, but did use it to his advantage.  Historians such as Bohme point out that Bismarck  “merely rode and steered” on the waves of Germany’s “economic life”.  

The economic expansion had great implications for social and political change, as for instance an increase in the industrial workforce lead to demands for better working conditions, and an increase in Trade Union membership. As noted by Culpin & Henig, there were some 2.6 million German workers who were members of trade unions by 1914.  Such developments had frightened Wilhelm, like Bismarck before him, as they saw such minority groups as “enemies of the state”.

Bismarck’s strategy to Change

Economic Change

Spurred on by unification and an abundance of natural resources such as iron ore, Germany saw its industrial production soar. With support from financial institutions, this transformed Germany from what had been a predominantly agrarian to a major industrial state. Iron ore production soared from 2.9 million tons in 1870 to 2.2 million tons by 1890, whereas in Britain production of iron ore was 14 million tons in 1870, and had not changed by 1890.  Expansion of the railways coerced the industrial growth in Germany, rising from 19.5 km in 1870, to 43 km in 1890. Agriculture did still play a vital role, act as a stimulus, due agrarian mechanisation.  Bismarck however took little interest in the economy. Culpin & Henig argue that this is ironic, as it was economic change that provided “the greatest challenge to the stability of the empire”.  

Bismarck embraced these changes as an opportunity to gain co-operation from the National Liberal Party at first, (the largest party in the Reichstag at the time), and also to gain military advantage. The chancellor had no party of his own, had common aims with the liberals such as national unity. By offering the liberals piecemeal concessions that at least appeared to favour free trade for example, he was assured of their support.  In fact Bismarck’s relationship with the Liberals was not insignificant.  The so-called “liberal era” as Geoff Eley puts forward, produced “an impressive concentration of forward looking legislation [and] an elaborate framework of capitalist enabling laws”, hence promoting further economic development.   Blackbaul and Ely portray Bismarck as very liberalising: “Germany benefits from Bismarck’s liberal and modernising tendencies”.

However, by the end of the 1870’s Bismarck wished to discontinue granting the liberals concessions. Also, as competition from foreign imports grew, Bismarck faced increased pressure by the landed elites (the Junkers) and the Industrialists to increase economic protectionism.  Bismarck believed in “Real Politik”, or the politics of realism.  He responded accordingly to the demands of the Junkers and Industrialists.  The additional attraction was that Germany would receive extra income from tariffs and that the country would be more self-sufficient.  This increase in protectionism effectively ended the “liberal era” of Bismarck’s chancellorship. Together with the system of Cartels already flourishing in Germany, the benefits of mass production remained with the Junkers and Industrialists, and were not passed on to the consumer.  

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Social Change

These intensive changes in Germany’s economy had a significant impact on the society. The massive influx of workers from rural areas to cities and towns, resulted in people discovering new freedoms.  With this new found freedom came increased demands for better working conditions, for instance, which fuelled an increase in trade union membership.  The very speed of this industrialisation meant that society was less able to adjust than in Britain. Pulzer points to  “the dissonance of the economic dynamism of the Reich and the relative stagnation of its social norms and political institutions”.  Industrialisation did ...

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