Industrialisation and Industrialisation and UrbanisationUrbanisation

History of Germany History of Germany

Lecture 3Lecture 3

ScheduleSchedule

1.1. The Industrial RevolutionThe Industrial Revolution

2.2. Population Growth and MigrationPopulation Growth and Migration

3.3. The Emergence of ClassesThe Emergence of Classes

4.4. Cultural ChangeCultural Change

5.5. Social CostsSocial Costs

6.6. ConclusionConclusion

Industrial RevolutionIndustrial Revolution• Late 18th, early 19th c. Started in Britain, spread then over the whole European continent.

• Industry replaces agrarian sector as most important economic sectorIndustry 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 RevolutionSecond Industrial Revolution

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 industriesMass production of consumer goodsMass production of consumer goodsMechanisation of manufacture of food and Mechanisation of manufacture of food and drink, clothing and transportdrink, clothing and transportEmployment for increasing number of Employment for increasing number of population whose needs were satisfied by population whose needs were satisfied by mass productionmass production

Spread of the Industrial RevolutionSpread of the Industrial Revolution

Paths to industrialisationPaths to industrialisation

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 transferRole of foreign investors in early industrialisation Role of foreign investors in early industrialisation (Irish capital in Hibernia mines in 1855)(Irish capital in Hibernia mines in 1855)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)

(1913 ~ 100)(1913 ~ 100) MetalMetal CoalCoal TransportTransport BuildingBuilding TextileTextile

18701870 7,57,5 13,913,9 8,98,9 20,120,1 31,931,9

18801880 13,913,9 24,724,7 16,116,1 2929 40,140,1

18901890 23,823,8 36,936,9 27,927,9 45,645,6 6565

19001900 47,547,5 57,557,5 50,150,1 6767 72,872,8

19131913 100100 100100 100100 100100 100100

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

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

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/industrialistsFamous companies/industrialists

StummStummKruppKruppThyssenThyssenBoschBoschSiemensSiemensDaimlerDaimlerBenzBenzAEG - RathenauAEG - RathenauBayerBayerBASFBASF

Electrical industry - SiemensElectrical industry - Siemens

Siemens pointer telegraph, 1847Siemens pointer telegraph, 1847

Electrical dynamo, 1866

Steel – Krupp, EssenSteel – Krupp, Essen

Krupp steelworks, Essen, Krupp steelworks, Essen, stages of growth 1819, stages of growth 1819, 1852, 19121852, 1912

Pioneering of seamless Pioneering of seamless railway wheelsrailway wheelsAlfred Krupp, 1812-87, Alfred Krupp, 1812-87, the ‘Cannon King’the ‘Cannon King’Develops Bessemer Develops Bessemer process for purifying steelprocess for purifying steelClose contacts with arms Close contacts with arms industryindustry

Krupp & munitionsKrupp & munitions

Krupp’s cast-steel cannon at Krupp’s cast-steel cannon at the 1851 Exhibition in Londonthe 1851 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)

Some consequences of the Some consequences of the Industrial RevolutionIndustrial 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 trade trade

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

Associations, lobbyism and trade unionsCentralverband 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”

Channelling dissatisfaction?

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 1895Agreements 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 1910Not 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

ScheduleSchedule

1.1. The industrial revolutionThe industrial revolution

2.2. Population Growth and MigrationPopulation Growth and Migration

3.3. The Emergence of ClassesThe Emergence of Classes

4.4. Cultural ChangeCultural Change

5.5. Social CostsSocial Costs

6.6. ConclusionConclusion

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 populationMore big citiesMore big citiesUrbanisation of daily lifeUrbanisation of daily lifeMigration and “uprooting”Migration and “uprooting”Relative decline of agrarian populationRelative decline of agrarian populationEmigration and immigrationEmigration and immigrationImprovement 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

ScheduleSchedule

1.1. The industrial revolutionThe industrial revolution

2.2. Population Growth and MigrationPopulation Growth and Migration

3.3. The Emergence of ClassesThe Emergence of Classes

4.4. Cultural ChangeCultural Change

5.5. Social CostsSocial Costs

6.6. ConclusionConclusion

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

Social Consequences of the Social Consequences of the Industrial RevolutionIndustrial Revolution

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)

Der Sozialist, Robert Koehler, 1885, DHM, Berlin

                                             

                                                                               

Villa Hügel in Essen (Krupp family)

ScheduleSchedule

1.1. The industrial revolutionThe industrial revolution

2.2. Population Growth and MigrationPopulation Growth and Migration

3.3. The Emergence of ClassesThe Emergence of Classes

4.4. Cultural ChangeCultural Change

5.5. Social CostsSocial Costs

6.6. ConclusionConclusion

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

Großstadt (Berlin), Hugo Krayn, 1914, DHM, Berlin

Das Stufenalter der Frau, F. Leibner, um 1900

ScheduleSchedule

1.1. The industrial revolutionThe industrial revolution

2.2. Population Growth and MigrationPopulation Growth and Migration

3.3. The Emergence of ClassesThe Emergence of Classes

4.4. Cultural ChangeCultural Change

5.5. Social CostsSocial Costs

6.6. ConclusionConclusion

Modell einer Berliner Mietskaserne, Berlin, um 1880, DHM, Berlin

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

ScheduleSchedule

1.1. The industrial revolutionThe industrial revolution

2.2. Population Growth and MigrationPopulation Growth and Migration

3.3. The Emergence of ClassesThe Emergence of Classes

4.4. Cultural ChangeCultural Change

5.5. Social CostsSocial Costs

6.6. ConclusionConclusion

Effects of “Great Depression” 1873-1896Effects of “Great Depression” 1873-1896Peculiarities of German economy: role of state, cartels, Peculiarities of German economy: role of state, cartels, finance capital, corporationsfinance capital, corporationsRelative financial weakness: needs of state (armament), Relative financial weakness: needs of state (armament), less productive agrarian sector (Junkers), compared to less productive agrarian sector (Junkers), compared to Britain industrial late comer – less accumulation of capital Britain industrial late comer – less accumulation of capital (financial capital of world – London)(financial capital of world – London)Workers: improved living standards – pauperisationWorkers: improved living standards – pauperisationBourgeoisie: weak or strong? class conscious or aiming Bourgeoisie: weak or strong? class conscious or aiming to adopt culture of nobilityto adopt culture of nobilityAlliance of rye and iron (East Elbian Junkers and Alliance of rye and iron (East Elbian Junkers and industrialists of Ruhr district) – dominant – responsible for industrialists of Ruhr district) – dominant – responsible for “German special path”?“German special path”?How important were economic questions for outbreak of How important were economic questions for outbreak of WWI?WWI?