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International competition
The Industrial Revolution left Germany unable to compete with British
firms.
There were also trade barriers between
different German states, including separate
currencies.
Better transport
German businesses wanted to improve train
links within the Confederation, to make
trading goods easier.
By the 1850s, 3000 miles of train lines had
been built, improving the economy.
Impact of Prussia
Prussia took action to improve trading links within her territories, including scrapping all internal taxes in 1818.
Prussia also introduced charges (tariffs) on goods
from outwith Prussia.
Arguments for
Support for economic changes came from
businessmen across the entire Confederation,
uniting different states.
Economic growth after train building showed that cooperation worked
too.
Arguments for
Economic success affected all groups in society.
Growth of the German economy led more jobs,
meaning more people backed closer links.
Industrial changes also inspired political change
too.
Arguments against
German economy lagged behind UK’s industrial
changes, so many workers still saw little benefit by
1850.
Some states concerned that economic links would increase Prussian power.