Turning point in 1878-1879:
- Policy change- after the Kulturkampf- abandonment of the Kulturkampf.
- Closer relation with the Catholic Centre party.
- A political struggle against Socialism.
- Bismarck was sympathetic to the demands of the agriculturalists. In 1873- slump- the "depression that lasted for many years".
- Re-introducton of tariffs on imports of foreign goods
- Bismarck was sympathetic to the demands of the agriculturalists. In 1873- slump- the "depression that lasted for many years". National Liberals and the start of a new political alignment with the Reichstag.
- Although agricultural prices continued to fall, the tariff on grain protected farmers and landowners from the worst effects of the agricultural depression.
- Owners of large industrial enterprise also abandoned their support for free trade and therefore their support for the National Liberal party. in the 1880's leading industrialists supported the Conservative party in the 'alliance of steel and rye".
- The National Liberal party never recovered from the strains of the tariff-reform crisis. There wee already divisions in the party before 1878. The party split in 1879. The right wing of the party supported Bismarck over tariff reform and the Anti-socialis Law but in the 1880's this group was but a its former self.
- Anti-Socialist Law in 1878- 45/47 newspapers were confiscated. A newspaper called the 'social democrat' was smuggled into Berlin.
- Many emigrated to USA.
- Secret meetings were held at Denmark(1883) and Switzerland(1880) and Switzerland again in 1887.
- 1879- 67 leading socialists were expelled out of Breslau, Hamburg(1880), Leipzig(1881) and Berlin.
- 600 socialists were arrested in the 1880 elections.
- Bismarck's state Socialism:
- In 1883 he introduced a scheme of medical insurance, covering 3 million workers and their families.
- In 1884 an accident Insurance scheme was introduced, financed entirely by employers.
- In 1886 the Accident Insurance scheme was extended to 7 million agricultural workers.
- In 1889 old age pensions were introduced for people over the age of 70 years old.
- Railway was extended to 42, 869Km's- made the transport of raw materials and manufactured goods more efficient.
- Trade- chemical goods, manufactured goods and raw materials were exported.
- Railways revealed farmer isolation to their competition.