Economic developments Flashcards
Info that is on the spec
When did economic growth begin?
the 1871 unification
What did German unification allow?
co-ordination of industry across the empire more effectively
What reform in 1871 improve?
The Currency Reform 1871 - provided easy credit for industrial growth
What was the growth of the economy in 1873?
5% annually
What investments helped keep the economy afloat?
railway building kept the economy buoyant during the world trade recession (1873-1896)
When did the economy become even stronger than in 1873?
1895 - huge expansion in German industry
What culture was falling as the industry was rising?
agriculture
What were factors of growth of industry?
- growth in population
- availability of raw materials
- German banking system
How did the population effect growth of industry?
- provided market and labour force
- younger generations more willing to accept the need for new skills
Where were raw materials coming from?
- Coal in the Ruhr
- Iron in Alsace Lorraine
How did the German banking system effect industry growth?
- free from state control
- invested heavily in the industry
- close links began to form between banks and businesses
What are considered old industries?
textiles, coal, iron, steel, and railways
What are considered new industries?
electricals, chemicals, modern machinery, and the motor car industry
How did the railways improve?
63,000km in 1913 - was 41,820km in 1890
What was Germany’s chemical industry like?
produced over 3/4 of the worlds chemical dyes, establishing a virtual monopoly
