Why did the German economy boom and how did it cause World War I?

By the beginning of the 20th century, the world had changed. It had become whole, global. But here's the rub - that world had become crowded. And everyone, especially the leaders have long been outraged by these “German upstarts”. It's not for nothing that the First World War is called the German War. It was an anti-German war, lost by the German world. Germany did not have Bismarck at that time to accurately assess the forces, to stop in time and to leave the casino with a win. 

If in the 18th century Britain becomes the master of the world, in the 19th century France tries to take the primacy away from her. The whole world is pitted against Napoleon, one revolution after another, then the Prussians enter Paris. In the end France goes in Britain's keel, but a new and strong competitor Germany appears. And Germany has a chance to lean on Russia with its vast resources. Yes, Russia has disputes with Austria-Hungary, but not with Germany. It is Germany that has long been the ghostly engine of technical excellence in Russia.

 

The meteoric rise of German industrial power

 

German engineering will be admired, its efficiency and economic growth envied. For example, at the turn of the century, Germany is moving to the construction of a huge military and civilian fleet. Using the pronounced support of the state, the largest German shipping companies take the first place in the world by the total tonnage of ships of displacement more than 5 billion tons!

It is consequently about the very basis of the economic and political power of Great Britain - the possession of the seas. In the last third of the 19th century, industry began to play a major role in the country's economic system. Germany overtook France in industrial production, and at the beginning of the 20th century England was left behind. 

The British were really starting to fear the Germans. An arms race begins and certain forces capitalize on it. Viscount Reginal Escher directly proposes to use the fear of Germany to increase the naval budget and strengthen the fleet. The career of the young Churchill, who becomes Minister of the Navy before the war, is also based on the arms race. Usually in this context we speak about the process of growth in the 19th century, but this is wrong and we should start from the beginning of the preconditions at the end of the 18th and the first half of the 19th century.

 

Philosophy and science

 

In the late 18th century, Germany became the center of philosophical thought, which contributed to a new approach to knowledge and learning. Philosophers such as Immanuel Kant and Georg Wilhelm Friedrich Hegel emphasized the importance of reason and the scientific method. Their ideas about freedom, individualism, and critical thinking became the basis for the development of educational institutions, which in turn fostered a new wave of scientific inquiry.

 

The Industrial Revolution and Prussian industry

 

The first half of the 19th century was a time of significant change for the German economy. After the Napoleonic Wars and the final unification of Germany in 1871, the country began to grow rapidly. Prussian industry, in particular, was forced to adapt to the fierce competition with other European powers. This demand for maximum efficiency became a driving force for many companies.

Prussian industrialists realized the need to introduce new technologies and to 
optimization of production processes. To this end, they began to invest heavily in machine building, textiles and chemicals. An important factor contributing to growth was the development of the railway network, which ensured fast and efficient transportation of goods and resources throughout the country.

The creation of the customs union (Solverein) in 1834 facilitated the economic integration of the German states and reduced tariffs on domestic trade. This strengthened economic ties between regions and created a single market, which boosted domestic production and trade.

 

How the economic boom took place

 

Germany experienced significant industrialization in the second half of the 19th century. The advent of new technologies, such as the steam engine and railroad transportation, accelerated the process of production and delivery of goods.

Industry in areas such as coal, metallurgy, and engineering began to grow at an incredible rate. For example, Germany quickly became one of the largest producers of coal and steel in Europe, which provided the country with the necessary resources for further economic growth.

 

Economic integration

 

The integration of the various German states played a key role in economic development. The creation of the Customs Union (Solverein) in 1834 helped to remove trade barriers between the German principalities and ensured the free movement of goods. This contributed to the formation of a single internal market, which allowed entrepreneurs to maximize their production capacity and reduce costs.

 

The role of Otto von Bismarck

 

Otto von Bismarck, Chancellor of Prussia, played a crucial role in Germany's economic boom. His iron-and-blood policy and his desire to unify Germany not only strengthened the state but also created the conditions for economic growth. Bismarck supported the development of infrastructure, including railroads, which greatly facilitated the transportation of goods and resources.

Bismarck also understood the importance of industrial development and worked to improve the business environment. He promoted the establishment of a system of banks, which provided financing for businesses. The establishment of currency unity was also an important step to facilitate trade and attract investment.

 

Export growth and new markets

 

By 1871, when Germany was unified, the country already had a strong position in the world market. German goods, especially in the fields of chemistry and engineering, were in high demand. Germany began to be perceived as an important player in international trade. At this time, new markets, especially in the colonies and emerging economies, began to be actively explored.

Exports of German goods contributed to job growth and income growth. The development of trade also contributed to the emergence of a new class of entrepreneurs and the growth of the middle class, which began to participate actively in the economic life of the country.

 

Social and cultural changes

 

The economic boom also affected the social structure of society. The increase in jobs led to the migration of people from rural areas to the cities. This contributed to the growth of cities and the change in the way of life. The emergence of new social strata such as the working class and entrepreneurs influenced culture and social relations.

 

Conclusion

 

The economic rise of Germany caused the First World War. The reasons for this rise are many, but the main ones are the German culture of labor and science, and the need to try hard to compete with other European powers, especially when Prussia, the core of the future German empire, was very small and weaker.