germany's eerste economisch miracle

35
HI136 The History of HI136 The History of Germany Germany Lecture 3 Lecture 3 Germany’s First Germany’s First Economic Miracle Economic Miracle

Upload: thierry-rossen

Post on 09-Mar-2016

225 views

Category:

Documents


1 download

DESCRIPTION

Boek over duitse economisch miracle

TRANSCRIPT

Page 1: Germany's eerste economisch miracle

HI136 The History of HI136 The History of GermanyGermanyLecture 3Lecture 3

Germany’s First Germany’s First Economic MiracleEconomic Miracle

Page 2: Germany's eerste economisch miracle

““The great The great questions of our questions of our day cannot be day cannot be solved by solved by speeches and speeches and majority votes majority votes but by iron and but by iron and blood.”blood.” Otto von Bismarck, Speech Otto von Bismarck, Speech to the Prussian to the Prussian LandtagLandtag, 30 Sept. , 30 Sept. 18621862

Page 3: Germany's eerste economisch miracle

““The German The German Empire was Empire was built more truly built more truly on coal and iron on coal and iron than on blood than on blood and iron.”and iron.” J. M. KeynesJ. M. Keynes

Page 4: Germany's eerste economisch miracle

Industrial RevolutionIndustrial Revolution Late 18th, early 19th c. Started in Britain, then spread Late 18th, early 19th c. Started in Britain, then spread

over the whole European continent.over the whole European continent. Industry replaces agrarian sector as most important Industry replaces agrarian sector as most important

economic sectoreconomic sector Economy based on manual labour was replaced by Economy based on manual labour was replaced by

industry, manufacturing and machinery. It began with the industry, manufacturing and machinery. It began with the mechanisation of the textile industry and the mechanisation of the textile industry and the development of new iron-making techniques.development of new iron-making techniques.

Improvement of transportation (canals, roads, railways)Improvement of transportation (canals, roads, railways) Steam power – fuelled primarily by coal and powered Steam power – fuelled primarily by coal and powered

machinerymachinery Dramatic increase in production capacity and Dramatic increase in production capacity and

productivityproductivity Fundamental socio-economic and cultural changesFundamental socio-economic and cultural changes

Page 5: Germany's eerste economisch miracle

Second Industrial Second Industrial RevolutionRevolution

Since middle of the 19th c.Since middle of the 19th c. Development of chemical, electrical, Development of chemical, electrical,

petroleum and steel industriespetroleum and steel industries Mass production of consumer goodsMass production of consumer goods Mechanisation of manufacture of food and Mechanisation of manufacture of food and

drink, clothing and transportdrink, clothing and transport Employment for increasing number of Employment for increasing number of

population whose needs were satisfied by population whose needs were satisfied by mass productionmass production

Page 6: Germany's eerste economisch miracle

Spread of the Industrial Spread of the Industrial RevolutionRevolution

Page 7: Germany's eerste economisch miracle

Paths to Paths to IndustrializationIndustrialization

The ‘British’ model of coal & iron-fired The ‘British’ model of coal & iron-fired industrialisation (Germany had many of the industrialisation (Germany had many of the same raw materials as GB)same raw materials as GB)

Late-comer industrialisers benefit from Late-comer industrialisers benefit from technology transfertechnology transfer

Role of foreign investors in early industrialisationRole of foreign investors in early industrialisation Role of state in German investment (Prussian Role of state in German investment (Prussian

government interest in railways, coal mines)government interest in railways, coal mines) Role of big investment banks (often represented Role of big investment banks (often represented

on board of companies)on board of companies)

Page 8: Germany's eerste economisch miracle
Page 9: Germany's eerste economisch miracle

(1913 ~ 100)(1913 ~ 100) MetalMetal CoalCoal TransportTransport BuildingBuilding TextileTextile18701870 7,57,5 13,913,9 8,98,9 20,120,1 31,931,918801880 13,913,9 24,724,7 16,116,1 2929 40,140,118901890 23,823,8 36,936,9 27,927,9 45,645,6 656519001900 47,547,5 57,557,5 50,150,1 6767 72,872,819131913 100100 100100 100100 100100 100100

Hans-Ulrich Wehler, Deutsche Gesellschaftsgeschichte, vol. 3 (Munich, 1995

Page 10: Germany's eerste economisch miracle

Data from: Paul Bairoch, "International Industrialization Levels from 1750 to 1980" JEEH 11

Page 11: Germany's eerste economisch miracle
Page 12: Germany's eerste economisch miracle

New Technologies in Industrial New Technologies in Industrial Production in Germany 1870-Production in Germany 1870-

19001900Heavy 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

Page 13: Germany's eerste economisch miracle

Famous Famous companies/industrialistscompanies/industrialists

StummStumm KruppKrupp ThyssenThyssen BoschBosch SiemensSiemens DaimlerDaimler BenzBenz AEG - RathenauAEG - Rathenau BayerBayer BASFBASF

Page 14: Germany's eerste economisch miracle

Electrical industry - Electrical industry - SiemensSiemens

Siemens pointer telegraph, 1847Siemens pointer telegraph, 1847

Electrical dynamo, 1866

Page 15: Germany's eerste economisch miracle

Steel – Krupp, EssenSteel – Krupp, Essen

Krupp steelworks, Essen, stages of Krupp steelworks, Essen, stages of growth 1819, 1852, 1912growth 1819, 1852, 1912

Pioneering of Pioneering of seamless railway seamless railway wheelswheels

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

Develops Bessemer Develops Bessemer process for purifying process for purifying steelsteel

Close contacts with Close contacts with arms industryarms industry

Page 16: Germany's eerste economisch miracle

Krupp & munitionsKrupp & munitions

Krupp’s cast-steel cannon at the Krupp’s cast-steel cannon at the 1851 Exhibition in London1851 Exhibition in London

Krupp’s 42cm ‘Dicke Bertha’ Krupp’s 42cm ‘Dicke Bertha’ siege gun (used to reduce siege gun (used to reduce

Liege in 1914 and shell Paris)Liege in 1914 and shell Paris)

Page 17: Germany's eerste economisch miracle

Some consequences of Some consequences of the Industrial Revolutionthe Industrial Revolution Population effects: productivity increases, Population effects: productivity increases,

health improvements, lower birth rates health improvements, lower birth rates Urbanisation – industry as “city forming” Urbanisation – industry as “city forming”

activityactivity Class societyClass society Environmental damageEnvironmental damage Growth of global markets & international Growth of global markets & international

tradetrade

Page 18: Germany's eerste economisch miracle

Social Consequences of Social Consequences of the Industrial Revolutionthe Industrial Revolution Clearer distinction between ‘work’ and Clearer distinction between ‘work’ and

‘leisure’.‘leisure’. Creation of an industrial working classCreation of an industrial working class

Rise of organised laborRise of organised labor Growth of bourgeoisie (merchants, Growth of bourgeoisie (merchants,

entrepreneurs) – economically dominantentrepreneurs) – economically dominant Craftsmen (old Craftsmen (old MittelstandMittelstand - middle class) - middle class)

become less importantbecome less important Civil servants and white collar workers (new Civil servants and white collar workers (new

MittelstandMittelstand - middle class) - middle class)

Page 19: Germany's eerste economisch miracle
Page 20: Germany's eerste economisch miracle

New Technology and Social New Technology and Social ChangeChange

Electric street lighting allowed people to keep later hours Electric street lighting allowed people to keep later hours and stimulated the entertainment industry.and stimulated the entertainment industry.

Railway travel created a more mobile populationRailway travel created a more mobile population Class distinctions on the railwaysClass distinctions on the railways Even so, complaints that rail travel was ‘too democratic’Even so, complaints that rail travel was ‘too democratic’

Plumbing, piped water and developments in drainage Plumbing, piped water and developments in drainage and sewers improved public healthand sewers improved public health Germany lagged behind Britain in the introduction of new Germany lagged behind Britain in the introduction of new

sanitation and public health technologysanitation and public health technology At the turn of the century indoor plumbing was still expensive At the turn of the century indoor plumbing was still expensive

and a luxury itemand a luxury item

Page 21: Germany's eerste economisch miracle

Demographic RevolutionDemographic Revolution Inhabitants of German Empire: Inhabitants of German Empire:

1864: 39,392,000; 1864: 39,392,000; 1871: 40,997,000; 1871: 40,997,000; 1910: 64,568,000 1910: 64,568,000

Growth of urban populationGrowth of urban population More big citiesMore big cities

Page 22: Germany's eerste economisch miracle
Page 23: Germany's eerste economisch miracle

Demographic RevolutionDemographic Revolution Inhabitants of German Empire: Inhabitants of German Empire:

1864: 39,392,000; 1864: 39,392,000; 1871: 40,997,000; 1871: 40,997,000; 1910: 64,568,000 1910: 64,568,000

Growth of urban populationGrowth of urban population More big citiesMore big cities Urbanisation of daily lifeUrbanisation of daily life Migration and “uprooting”Migration and “uprooting” Relative decline of agrarian populationRelative decline of agrarian population Emigration and immigrationEmigration and immigration Improvement of health care – decline of infant mortality Improvement of health care – decline of infant mortality

(since 1900) and higher life expectancy (since 1900) and higher life expectancy

Page 24: Germany's eerste economisch miracle

ClassClass In Marxist terms a class is a group of people In Marxist terms a class is a group of people

defined by their relationship to the means of defined by their relationship to the means of production. production.

Social class is based on economically Social class is based on economically determined relationship to the market (owner, determined relationship to the market (owner, renter, employee etc.) – Max Weberrenter, employee etc.) – Max Weber

Similar life chancesSimilar life chances Common interestsCommon interests Subjective factor: Identification with classSubjective factor: Identification with class

Page 25: Germany's eerste economisch miracle

Der Sozialist, Robert Koehler, 1885, DHM, Berlin

Page 26: Germany's eerste economisch miracle
Page 27: Germany's eerste economisch miracle

Winners and LosersWinners and Losers Rapid industrial and economic growth brought about Rapid industrial and economic growth brought about

social change.social change. Some in society were obvious beneficiaries, others didn’t Some in society were obvious beneficiaries, others didn’t

do quite so well.do quite so well. The most obvious beneficiaries were the industrialists The most obvious beneficiaries were the industrialists

and bankers who owned German business.and bankers who owned German business. The working class were essential to the growth of the The working class were essential to the growth of the

German economy, but often lived in poor conditions.German economy, but often lived in poor conditions.

Page 28: Germany's eerste economisch miracle

Elendsquartier in der Berliner Spreestr. 6, Berlin, about 1910 (DHM, Berlin)

Page 29: Germany's eerste economisch miracle

Winners and LosersWinners and Losers Rapid industrial and economic growth brought about Rapid industrial and economic growth brought about

social change.social change. Some in society were obvious beneficiaries, others didn’t Some in society were obvious beneficiaries, others didn’t

do quite so well.do quite so well. The most obvious beneficiaries were the industrialists The most obvious beneficiaries were the industrialists

and bankers who owned German business.and bankers who owned German business. The working class were essential to the growth of the The working class were essential to the growth of the

German economy, but often lived in poor conditions.German economy, but often lived in poor conditions. Landowners lost out in the transition to an industrial Landowners lost out in the transition to an industrial

economy.economy. The old middle class also declined.The old middle class also declined. The benefits of growth were unevenly distributed, but The benefits of growth were unevenly distributed, but

there was a general improvement in prosperity.there was a general improvement in prosperity.

Page 30: Germany's eerste economisch miracle
Page 31: Germany's eerste economisch miracle

Some PeculiaritiesSome Peculiarities Important role of state investment (coal mining in Important role of state investment (coal mining in

Saarland belonged to Prussian state)Saarland belonged to Prussian state) Important role of finance capital (long-term Important role of finance capital (long-term

investments, directors of banks in supervisory investments, directors of banks in supervisory boards of shareholder companies)boards of shareholder companies)

Important role of industrial associations Important role of industrial associations (lobbyism)(lobbyism)

Important role of cartelsImportant role of cartels

Page 32: Germany's eerste economisch miracle

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

Exert pressure on the government and Reichstag deputies

Successes: Tariffs 1878/79

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

Associations, lobbyism and trade Associations, lobbyism and trade unionsunions

Page 33: Germany's eerste economisch miracle

CartelsCartels Cartels created in times of crisis (1873 ff), 70 in 1887, Cartels created in times of crisis (1873 ff), 70 in 1887,

143 in 1895143 in 1895 Agreements between companies to fix prices, regulate Agreements between companies to fix prices, regulate

output output Legally binding (in USA cartels were forbidden)Legally binding (in USA cartels were forbidden) But…But… So successful and useful, that even more cartels were So successful and useful, that even more cartels were

founded after 1896, 673 by 1910founded after 1896, 673 by 1910 Not all sectors dominated by cartels: potash industry Not all sectors dominated by cartels: potash industry

(100%), paper industry (90%), coal (82%), iron and (100%), paper industry (90%), coal (82%), iron and cement industries (less than 50%), electrical industry cement industries (less than 50%), electrical industry (less than 10%), almost no cartels in chemical industry(less than 10%), almost no cartels in chemical industry

Page 34: Germany's eerste economisch miracle

ConclusionConclusion Causes for Germany’s First ‘Economic Miracle’:Causes for Germany’s First ‘Economic Miracle’:

Population growth provided both a work force and a market for Population growth provided both a work force and a market for manufactured goodsmanufactured goods

Germany had ample raw materialsGermany had ample raw materials Geography – rivers and railways provided transportGeography – rivers and railways provided transport Good education system provided a skilled workforceGood education system provided a skilled workforce Expansion of banks free from regulation encouraged investment Expansion of banks free from regulation encouraged investment

and a close relationship between banking and industryand a close relationship between banking and industry

Page 35: Germany's eerste economisch miracle

ConclusionConclusion Consequences of Industrialization:Consequences of Industrialization:

Demographic changeDemographic change Population growthPopulation growth Growth of townsGrowth of towns East-West migrationEast-West migration

Social Change Social Change Creation of an urban working classCreation of an urban working class Separation of ‘work’ and ‘leisure’Separation of ‘work’ and ‘leisure’ Growth of literacyGrowth of literacy Growth of service industry and mass entertainmentGrowth of service industry and mass entertainment