Change and Continuity in German Society and Economy (1871-1918)

Economic Growth and Industrialisation (1871-1918)

The late 19th century marked a period of noticeable economic expansion in Germany known as the ‘Gründerzeit’. This ‘founders’ era was characterised by rapid industrialisation and urbanisation, largely facilitated by the national unification under Bismarck’s leadership.
During this period, Germany emerged as a leading industrial power in Europe, trailing only behind the United States and Britain. This was on account of extensive growth in coal, iron and steel production, and the blossoming of the chemical and electrical industries, symbolised by corporations like BASF and Siemens respectively.
Additionally, the Auswanderung or mass emigration wave predominantly to North America in the latter half of the 19th century significantly altered Germany’s economic landscape. This led to changes in labour demand and supply and encouraged technological innovation and production efficiency.
Meanwhile, Bismarck’s Protectionist Tariff policy launched in 1879 introduced high import duties which were intended to protect domestic industries from foreign competition, particularly from American and British grain producers.

The swift pace of industrialisation led to significant demographic shifts, with a boom in urban populations due to immigration from rural areas – referred to as Landflucht or ‘flight from the land’. The cities of Berlin, Hamburg, Munich and Cologne, for instance, witnessed a massive surge in their population.
The advent of industrialisation also led to the rise of distinct social classes including the bourgeoisie - capitalists who owned the means of production, and the proletariat - a class of wage earners who had only their labour power to sell.
While the bourgeoisie prospered owing to the booming economy, the proletariat, composed of factory workers and miners, toiled under often poor conditions for meagre wages. This burgeoning contrast between the rich and the poor set the stage for social conflict.
Bismarck’s role cannot be underestimated in this societal transformation. He adopted measures, notably the Social Insurance Programmes, to garner working-class support and suppress socialist tendencies.

Despite the marked social and economic transformations, certain aspects of German society persisted. The Junker class particularly in Prussia, composed of large landowners, retained their disdain for industrial change and clung to their agrarian ways.
Likewise, certain societal norms such as Obrigkeitstaat, the acceptance of an authoritarian state, and a hierarchical perception of social class prevailed in this period. These facets are indicative of a conservative underpinning in German society, limiting the pace at which social reforms could be implemented.
Both the Junker class and the conservative societal norms contributed towards defining the political culture of Imperial Germany, resulting in an incongruity between the rapid economic advancements and the corresponding societal evolutions.