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HIST2086 Bismarck: The Iron Chancellor

HIST2086 Bismarck: The Iron Chancellor. Bismarck’s economic and social policies, 1878-90 Lecture 16 9 November 2010. Economy, 1871-9 (1). ‘ Founder years ’ ( Gründerjahre ) after unification, 1871-3: Rapid expansion of industry, commerce, great banks → 1,018 new firms founded

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HIST2086 Bismarck: The Iron Chancellor

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  1. HIST2086Bismarck: The Iron Chancellor Bismarck’s economic and social policies, 1878-90 Lecture 16 9 November 2010

  2. Economy, 1871-9 (1) • ‘Founder years’ (Gründerjahre) after unification, 1871-3: Rapid expansion of industry, commerce, great banks → 1,018 new firms founded • Further heating up by F’s war reparations of 5,000 million gold francs • Economic crisis, 1873: Criticism of free trade, UK competition, cheap US grain imports → Rising demands for protective laws

  3. Economy, 1871-9 (2) = Transition to protective tariffs supported by Bismarck to obtain financial means for Reich without Reichstag consent = Forging of alliance of heavy industry & large land-owning interests vs. commerce, shipping & consumer interests

  4. Negative Integration Target groups: • Catholics + Centre Party → Kulturkampf • Poles / Danes / Alsatians → Language discrimination • Socialists + SPD (Social Democratic Party of Germany) → ‘Anti-Socialist Law’, 1878

  5. Early Working-class Political Parties in Europe • Initially clandestine, conspiratorial, illegal cells - later mass political parties • Chartism: Mass meetings & petitions for political & social reform ► UK 1837-42 • General German Workers’ Union, 1863 → German Social Democratic Party (SPD), 1875/90 ► Model party for North EU, NL, B, I, East EU

  6. Socialist Party • 1869 Social Democratic Workers’ Party: Marxist • 1875 Social Democratic Party of Germany (SPD) Reformist + Revolutionary Aimed … • To change existing order • To employ legal means in political struggle • To nationalise banks, industry, • To fight for social equality = Growing support of industrial workers until 1914

  7. Anti-Socialist Bill (1) 1878 Assassination attempts on William I: → Bismarck reaction … • predicted ‘red anarchy’ • blamed National Liberals for not supporting anti-socialist bill • dissolved Reichstag for new election: Huge losses for SPD + National Liberals = Anti-socialist bill passed (Oct 1878)

  8. Anti-Socialist Bill (2) • SPD organisations, trade unions, meetings, publications banned • 1,500 SPD members imprisoned + many emigrated • But: SPD parliamentary party still legal = Underground activity of SPD organisations = Election campaigns & parliamentary work continued = Strengthened SPD in its political beliefs ► Unsuccessful policy of Bismarck !

  9. State Socialism (1) Welfare measures = State socialism Reasons: • Bismarck’s Christianity / morality • Paternalist tradition in Prussia / Germany: State regarded as responsible for well-being of citizens • Bismarck’s hope to win workers’ support vs. growing support for SPD

  10. State Socialism (2) • Bills: Sickness Insurance Act, 1883 Accident Insurance Act, 1884 Old Age and Disability Act, 1889

  11. State Socialism (3) • Benefits modest, no state subsidies • No interference in employers’ rights (‘Masters in their own house’) • No substitute for real political rights • No weakening of SPD + Left Liberals • Not successful for winning working class • But: Germany most advanced in social legislation worldwide (a model)

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