Economic developments 1871-1914 Flashcards
What did unification mean for the economy?
- Made it possible to coordinate industry more effectively
- Payment from French indemnity and inflationary effect of currency reform = industrial growth
When was the world trade recession?
- Known as the ‘Great Depression’
- Happened between 1873 and 1896
What did the world trade recession mean for Germany?
- Effects not immediately apparent (earlier investment in railway-building kept economy going)
- Demand falls off for textiles and engineering products from 1876 which means slower growth
- Only returned to a steady trajectory after 1894
By 1914, how had German industry overtaken agriculture?
- Huge expansion of German industry
- Up to 1880s, agriculture accounts for 35/40% GNP and industry represents the same amount
- By 1914, this swings to 25% in agriculture and 45% in industry
How many times did industrial production multiply by between 1890 and 1914
It tripled
How did the population support economic growth?
- Huge growth in German population = labour and market for expanding economy
- Balance of population shifts towards the younger generations
In what parts of the German Empire was there an abundance of raw materials?
- Coal in the Ruhr, Saar and Silesia
- Iron in Alsace-Lorraine and Ruhr
- Potash in Alsace-Lorraine
What were Germany’s geographical advantages for the economy?
- Navigable rivers (Rhine and Elbe)
- Broad, flat plain in the North (good for railways and therefore transport of raw materials)
How developed was the German education system? How did this support economic growth?
- More science graduates from just Munich university than there were from all English universities combined
- German education seen as world leading
- Good education developed technical skills for industrial development
How did the number of cartels increase between 1875 and 1911?
- Only 8 in 1975
- 600 by 1911
Which companies operated cartels?
- Siemens and AEG
- Rhenish Westphalian Coal Syndicate controls 1/2 of Germany’s output in coal
- Steel Union comprises 30 large steelworks
How did the government support economic growth?
- Bismarck’s tariffs
- Caprivi’s trade treaties/measures
What fraction of the world’s dyes was Germany producing by 1914?
Over 3/4 of the world’s dyes
How did production of sulphuric acid grow between 1878 and 1907?
- Only 1 million tonnes being produced globally in 1878
- By 1907, Germany alone was producing 1.4 million tonnes
Where did the electrical industry grow most? Why?
In the Rhine area, because generators could be powered by waste gases from the steelworks
How much did production of electrical energy increase between 1901 and 1915?
150%
How was Germany visibly modernising from 1901 to 1915?
- Electric lights become more common
- Horse drawn carriages were being replaced by electric trolleys
How much of the world’s trade in chemicals did Germany control by 1913?
1/2
Which companies were making advancements in the motor industry?
Daimler, Benz, Mercedes
What drove industrial work after 1890?
The Kaiser’s ambitious desires for Weltpolitik
What percentage of the population were employed in agriculture in 1907?
35%
What did larger Junker estates in the East produce?
Rye and beet
What did smaller peasant holdings throughout Germany produce?
Cereals, fruit, vegetables, wine, livestock, dairy products
What were the strengths and weaknesses of tariffs?
- Strength: Helped farmers by preventing cheap Russian/American grain imports coming into the German market
- Weakness: Kept prices artificially high for German consumers and stopped farmers producing anything other than grain
