Industrialisation and Urbanisation

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Industrialisation and Urbanisation

• History of Germany
• Lecture 3

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Schedule

• The Industrial Revolution
• Population Growth and Migration
• The Emergence of Classes
• Cultural Change
• Social Costs
• Conclusion

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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

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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

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Spread of the Industrial Revolution
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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)

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(1913 100) Metal Coal Transport Building Textile
1870 7,5 13,9 8,9 20,1 31,9
1880 13,9 24,7 16,1 29 40,1
1890 23,8 36,9 27,9 45,6 65
1900 47,5 57,5 50,1 67 72,8
1913 100 100 100 100 100
Hans-Ulrich Wehler, Deutsche Gesellschaftsgeschic
hte, vol. 3 (Munich, 1995
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Data from Paul Bairoch, "International
Industrialization Levels from 1750 to 1980" JEEH
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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 Plas
tics 1885 Pharmaceuticals Safety explosives 1885
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Famous companies/industrialists

• Stumm
• Krupp
• Thyssen
• Bosch
• Siemens
• Daimler
• Benz
• AEG - Rathenau
• Bayer
• BASF

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Electrical industry - Siemens

• Siemens pointer telegraph, 1847

Electrical dynamo, 1866
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Steel Krupp, Essen

• Pioneering of seamless railway wheels
• Alfred Krupp, 1812-87, the Cannon King
• Develops Bessemer process for purifying steel
• Close contacts with arms industry

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

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Krupp munitions

• Krupps cast-steel cannon at the 1851 Exhibition
  in London

• Krupps 42cm Dicke Bertha siege gun (used to
  reduce Liege in 1914 and shell Paris)

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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

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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

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Associations, lobbyism and trade unions
Centralverband Deutscher Industrieller 1876
(Central Union of German Industrialists) Bund der
Industriellen 1895 (Union of Industrialists) Hansa
bund 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
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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

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Schedule

• The industrial revolution
• Population Growth and Migration
• The Emergence of Classes
• Cultural Change
• Social Costs
• Conclusion

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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

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Schedule

• The industrial revolution
• Population Growth and Migration
• The Emergence of Classes
• Cultural Change
• Social Costs
• Conclusion

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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

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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)

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Der Sozialist, Robert Koehler, 1885, DHM, Berlin
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Villa Hügel in Essen (Krupp family)
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Schedule

• The industrial revolution
• Population Growth and Migration
• The Emergence of Classes
• Cultural Change
• Social Costs
• Conclusion

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First threshing-machine in Lankow near Schwerin
in 1882Carl Wilhelm Christian Malchin, 1882,
DHM, Berlin
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Großstadt (Berlin), Hugo Krayn, 1914, DHM, Berlin
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Das Stufenalter der Frau, F. Leibner, um 1900
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Schedule

• The industrial revolution
• Population Growth and Migration
• The Emergence of Classes
• Cultural Change
• Social Costs
• Conclusion

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Modell einer Berliner Mietskaserne, Berlin, um
1880, DHM, Berlin
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Elendsquartier in der Berliner Spreestr. 6,
Berlin, about 1910 (DHM, Berlin)
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Schedule

• The industrial revolution
• Population Growth and Migration
• The Emergence of Classes
• Cultural Change
• Social Costs
• Conclusion

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• 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?