German Economy 1870-1914

Why it grew:

• MOST IMPORTANT:
  • Natural resources e.g. coal and iron in the Ruhr; iron in Alsace Lorraine
• IMPORTANT:
• OTHER REASONS:
  • Tarriffs introduced in 1879 allowed industry to grow relatively free from foreign competition
  • Growth of cartels encouraged by government meant businesses could feel more secure
  • Banking system supported businesses with long term credit

Consequences of Economic Growth:

• JUNKERS:
  • Continued to be a very powerful political force,…