HIST2128

Germany, 1871-1933: From Empire to Republic

Industrialisation and its impact on society

Lecture 6

9 February 2012

Economy, 1871-9 (1)

• ‘Founder years’ (Gründerjahre) after unification, 1871-3: Rapid expansion of industry, commerce, great banks → 1,018 new firms founded

• Further heating up by F’s war reparations of 5,000 million gold francs

• Economic crisis, 1873: Criticism of free trade, UK competition, cheap US grain imports → Rising demands for protective laws

Economy, 1871-9 (2)= Transition to protective tariffs supported by Bismarck to

obtain financial means for Reich without Reichstag consent

= Forging of alliance of heavy industry & large land-owning interests vs. commerce, shipping & consumer interests

= Securing National Liberals’ & Conservatives’ majorities for Bismarck in Reichstag

→ Change to stronger conservatism in G’ domestic policy, 1878/9 !

→ End of Bismarck’s cooperation with Liberals

Negative Integration

Target groups:

1) Catholics + Centre Party → Kulturkampf

2) Poles / Danes / Alsatians → Language discrimination

3) Socialists + SPD (Social Democratic Party of Germany) → ‘Anti-Socialist Law’, 1878

Early Working-class Political Parties in Europe

• Initially clandestine, conspiratorial, illegal cells - later mass political parties

• Chartism: Mass meetings & petitions for political & social reform ► UK 1837-42

• General German Workers’ Union, 1863 → German Social Democratic Party

(SPD), 1875/90 ► Model party for North EU, NL, B, I, East EU

Socialist Party

• 1869 Social Democratic Workers’ Party: Marxist• 1875 Social Democratic Party of Germany (SPD)

Reformist + Revolutionary

Aimed …• To change existing order • To employ legal means in political struggle• To nationalise banks, industry,• To fight for social equality

= Growing support of industrial workers until 1914

Anti-Socialist Bill (1)

1878 Assassination attempts on William I:

→ Bismarck reaction …• predicted ‘red anarchy’• blamed National Liberals for not supporting

anti-socialist bill• dissolved Reichstag for new election: Huge

losses for SPD + National Liberals

= Anti-socialist bill passed (Oct 1878)

Anti-Socialist Bill (2)

• SPD organisations, trade unions, meetings, publications banned

• 1,500 SPD members imprisoned + many emigrated• But: SPD parliamentary party still legal

= Underground activity of SPD organisations

= Election campaigns & parliamentary work continued

= Strengthened SPD in its political beliefs

► Unsuccessful policy of Bismarck !

State Socialism (1)

Welfare measures = State socialism

Reasons:

• Bismarck’s Christianity / morality

• Paternalist tradition in Prussia / Germany:

State regarded as responsible for well-being of citizens

• Bismarck’s hope to win workers’ support vs. growing support for SPD

State Socialism (2)

• Bills:

Sickness Insurance Act, 1883

Accident Insurance Act, 1884

Old Age and Disability Act, 1889

“The German Social Insurance stands as model for the whole worldand has not yet been achieved by others.”

State Socialism (3)

• Benefits modest, no state subsidies• No interference in employers’ rights

(‘Masters in their own house’)

• No substitute for real political rights

• No weakening of SPD + Left Liberals

• Not successful for winning working class

• But: Germany most advanced in sociallegislation worldwide (a model)