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Industrialisation and Urbanisation. History of Germany Lecture 3. Schedule. The Industrial Revolution Population Growth and Migration The Emergence of Classes Cultural Change Social Costs Conclusion. Industrial Revolution.

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industrialisation and urbanisation

Industrialisation and Urbanisation

History of Germany

Lecture 3

schedule
Schedule
  • The Industrial Revolution
  • Population Growth and Migration
  • The Emergence of Classes
  • Cultural Change
  • Social Costs
  • Conclusion
industrial revolution
Industrial Revolution
  • Late 18th, early 19th c. Started in Britain, spread then over the whole European continent.
  • Industry replaces agrarian sector as most important economic sector
  • Economy based on manual labour was replaced by industry, industrial manufacturing and machinery. It began with the mechanisation of the textile industries and the development of iron-making techniques.
  • Improvement of transportation (canals, roads, railways)
  • Steam power – fuelled primarily by coal and powered machinery
    • Dramatic increase in production capacity and productivity
    • Fundamental socio-economic and cultural changes
second industrial revolution
Second Industrial Revolution
  • Since middle of the 19th c.
  • Development of chemical, electrical, petroleum and steel industries
  • Mass production of consumer goods
  • Mechanisation of manufacture of food and drink, clothing and transport
  • Employment for increasing number of population whose needs were satisfied by mass production
paths to industrialisation
Paths to industrialisation
  • The ‘British’ model of coal & iron-fired industrialisation (Germany had many of the same raw materials as GB)
  • Late-comer industrialisers benefit from technology transfer
  • Role of foreign investors in early industrialisation (Irish capital in Hibernia mines in 1855)
  • Role of state in German investment (Prussian government interest in railways, coal mines)
  • Role of big investment banks (often represented on board of companies)
slide11

New Technologies in Industrial Production in Germany 1870-1900

Heavy industry

English blast furnace technology

Coal from Silesia and the Ruhr

Ores from Lorraine

Bessemer process 1879

Stainless steel 1912

Mechanical engineering

Locomotives

Internal combustion engine 1876

Cars 1889

Diesel engines 1896

Zeppelins (airships) 1900

Airplanes 1905

Electrical Industry

Dynamos (Siemens)

Electrical engines

Telephones

Power stations

Films

X-ray units

Chemical Industry

Artificial fertilizers

Dyes

Plastics 1885

Pharmaceuticals

Safety explosives 1885

famous companies industrialists
Famous companies/industrialists
  • Stumm
  • Krupp
  • Thyssen
  • Bosch
  • Siemens
  • Daimler
  • Benz
  • AEG - Rathenau
  • Bayer
  • BASF
steel krupp essen
Krupp steelworks, Essen, stages of growth 1819, 1852, 1912

Pioneering of seamless railway wheels

Alfred Krupp, 1812-87, the ‘Cannon King’

Develops Bessemer process for purifying steel

Close contacts with arms industry

Steel – Krupp, Essen
krupp munitions
Krupp’s cast-steel cannon at the 1851 Exhibition in London

Krupp’s 42cm ‘Dicke Bertha’ siege gun (used to reduce Liege in 1914 and shell Paris)

Krupp & munitions
some consequences of the industrial revolution
Some consequences of the Industrial Revolution
  • Population effects: productivity increases, health improvements, lower birth rates
  • Urbanisation – industry as “city forming” activity
  • Class society
  • Environmental damage
  • Growth of global markets & international trade
some peculiarities
Some Peculiarities
  • Important role of state investment (coal mining in Saarland belonged to Prussian state)
  • Important role of finance capital (long-term investments, directors of banks in supervisory boards of shareholder companies)
  • Important role of industrial associations (lobbyism)
  • Important role of cartels
slide20

Associations, lobbyism and trade unions

Centralverband Deutscher Industrieller 1876 (Central Union of German Industrialists)

Bund der Industriellen 1895 (Union of Industrialists)

Hansabund 1909

Vereinigung der deutschen Arbeitgeberverbände 1913 (Union of German Employers’ Associations)

Free = Socialist “Generalkommission” general commission

Christian “Gesamtverband”

“yellow” = liberal

Organising the working class, representing interests of workers, indirect successes – state intervention and “welfare state”

Channelling dissatisfaction?

Exert pressure on the government and Reichstag deputies

Successes: Tariffs 1878/79

cartels
Cartels
  • Cartels created in times of crisis (1873 ff), 70 in 1887, 143 in 1895
  • Agreements between companies to fix prices, regulate output
  • Legally binding (in USA cartels were forbidden)
  • But…
  • So successful and useful, that even more cartels were founded after 1896, 673 by 1910
  • Not all sectors dominated by cartels: potash industry (100%), paper industry (90%), coal (82%), iron and cement industries (less than 50%), electrical industry (less than 10%), almost no cartels in chemical industry
schedule22
Schedule
  • The industrial revolution
  • Population Growth and Migration
  • The Emergence of Classes
  • Cultural Change
  • Social Costs
  • Conclusion
demographic revolution
Demographic Revolution
  • Inhabitants of German Empire: 1864: 39,392,000; 1871: 40,997,000; 1910: 64,568,000
  • Growth of urban population
  • More big cities
  • Urbanisation of daily life
  • Migration and “uprooting”
  • Relative decline of agrarian population
  • Emigration and immigration
  • Improvement of health care – decline of infant mortality (since 1900) and higher life expectancy
schedule28
Schedule
  • The industrial revolution
  • Population Growth and Migration
  • The Emergence of Classes
  • Cultural Change
  • Social Costs
  • Conclusion
class
Class
  • In Marxist terms a class is a group of people defined by their relationship to the means of production.
  • Social class is based on economically determined relationship to the market (owner, renter, employee etc.) – Max Weber
  • Similar life chances
  • Common interests
  • Subjective factor: Identification with class
social consequences of the industrial revolution
Social Consequences of the Industrial Revolution
  • Creation of an industrial working class
    • Rise of organised labor
  • Growth of bourgeoisie (merchants, entrepreneurs) – economically dominant
  • Craftsmen (old Mittelstand - middle class) become less important
  • Civil servants and white collar workers (new Mittelstand - middle class)
schedule37
Schedule
  • The industrial revolution
  • Population Growth and Migration
  • The Emergence of Classes
  • Cultural Change
  • Social Costs
  • Conclusion
slide38

First threshing-machine in Lankow near Schwerin in 1882Carl Wilhelm Christian Malchin, 1882, DHM, Berlin

schedule44
Schedule
  • The industrial revolution
  • Population Growth and Migration
  • The Emergence of Classes
  • Cultural Change
  • Social Costs
  • Conclusion
schedule51
Schedule
  • The industrial revolution
  • Population Growth and Migration
  • The Emergence of Classes
  • Cultural Change
  • Social Costs
  • Conclusion
slide52
Effects of “Great Depression” 1873-1896
  • Peculiarities of German economy: role of state, cartels, finance capital, corporations
  • Relative financial weakness: needs of state (armament), less productive agrarian sector (Junkers), compared to Britain industrial late comer – less accumulation of capital (financial capital of world – London)
  • Workers: improved living standards – pauperisation
  • Bourgeoisie: weak or strong? class conscious or aiming to adopt culture of nobility
  • Alliance of rye and iron (East Elbian Junkers and industrialists of Ruhr district) – dominant – responsible for “German special path”?
  • How important were economic questions for outbreak of WWI?