Bismarck - economics Flashcards
Why was there an economic boom in the early 1870s?
Over generous credit policies on the part of German bankers
Free trade policy
Influx of capital from French war reparations
When was the economic crash?
1873-4
What did Williamson say about the economy in the later 1870s?
Economic developments of the later 1870s discredit both economic and political liberalism
Why did Agriculture want protectionism?
Agriculture was facing pressure from cheap Russian and American wheat
What other reasons were there for Bismarck adopting protectionism?
Being self-sufficient and not reliant on foreign imports would be highly advantageous to Germany
Tariffs would provide the government with much needed revenue
Russia adopted protectionism, following the Balkans in 1877-78, relations with Russia had become strained, protection could be a way for Germany to retaliate.
Give Bismarck’s quote.
“The great questions of our day cannot be solved by speeches and majority votes but by iron and blood”
What does Keynes say about the German Empire?
“The German Empire was built more truly on coal and iron that on blood and iron”
What were the causes of Germany’s first ‘Economic Miracle’?
Population growth
Ample supply raw materials
Geography - the Rhineland
World-renowned education system
Unification and the tariffs introduced in 1878
Development of chemicals and electricals
Expansion of banks free from regulation
Overseas trade
How did the move to protectionism impact the National Liberals?
They were severely weakened. In addition to the split within the party, their economic policy had been discredited by the crash and they had subsequently lost the support of the industrialists and businessmen.
