How Did Germany Become an Industrial Giant in the Late 1800s?

Germany features one of the largest economies in the entire world. If we’re focusing only on Europe, then Germany has the biggest economy within that region. To say that Germany is one of the major movers and shakers of the global markets would not be an exaggeration.

So, how did Germany become the global powerhouse that it is today? It didn’t happen overnight. Events that took place centuries ago laid the foundation for the German economy to become a diverse, resilient, and powerful force.

Throughout this article, we will look back at events that shaped Germany’s economy and provide answers to the question of how Germany became an industrial giant in the late 1800s.

Join us as we step back in time and examine Germany’s economic history more closely.

What to Know about Germany’s Economic Boom in the Late 1800s

The latter half of the 1800s in Germany was a great economic change for the nation. The time between the late 1860s through the 1870s saw remarkable highs and lows for the country.

It started with a big boom period in the 1860s, made possible by changes instituted by Otto von Bismarck and his political allies. Their focus was mainly on promoting a unified economy and encouraging Germans to support it.

A central bank was created to facilitate the growth of the more unified German economy. Regulations were also eased to allow for creating corporations that could take advantage of the new economic climate.

Germans were also on the same page with their government regarding the efforts being made. That was evidenced by their significant investments in the new economies.

Of course, answering how Germany became an industrial giant late in the 1800s would not be this simple. Unforeseen circumstances would abruptly put an end to that period of prosperity.

The onset of an economic downturn that affected the entire world also affected Germany. Numerous companies formed during the boom period went bankrupt. Germans also held on to their money, which was perfectly understandable then.

The German leaders were called upon to act, and they responded to the call of the collapsing economy. Economic changes were again communicated to the German population.

More regulations were instituted, and agreements with cartels were forged. Those agreements proved immensely helpful in solidifying the production industry inside Germany.

Growing Germany with the Help of the Railway System

How did Germany succeed in the 1800s? We cannot tell that story in its entirety without discussing the role the railway system played.

Moving further back into the 1800s, the states in Germany weren’t always on the same page. Differing political ideologies created rifts between the states, and each had a strong inclination to keep to themselves.

The lack of unity among the states undermined Germany’s growth. Something had to be done about it. Creating a more robust railway system was seen as a potential solution.

Germany’s decision to invest in the railway system proved smart. Although Germany relied on British talent and technology to start its railway projects early on, the nation’s workers learned quickly.

Soon, they were able to handle the projects independently. Connectivity was vastly improved after the railway system in Germany was upgraded. The sharing of resources and talents among the German states changed along with the improvement of the railway system. The revamped railways also helped stimulate the economies of the different German states.

If you want to understand how Germany became an industrial giant in the late 1800s, you must familiarize yourself with the development of its railway system.

Industrialized Germany

The German economy grew in the late 1800s largely due to the rapid development of certain industries, including those focused on the production of building materials.

Major industries in Germany specialized in producing cotton, iron, and steel during that time. Those industries were able to grow as large as they did thanks to the renewed emphasis the German government put on becoming a more industrialized country.

Remember those cartels from earlier? They contributed a lot to the country’s industrial revolution. The German government made agreements with those cartels, and the cartels, in turn, helped organize the market. Those cartels were in charge of establishing standards for the production of goods and setting prices for the manufacturers.

Thanks to the partnership formed by the government and the cartels, the production of building materials improved quickly. Germany didn’t just become another force to reckon with on the global production stage; in Europe, it even became the leading producer of steel.

Along with strengthening the economy, increased industrialization also boosted the country’s infrastructure. Railways, towns, and so many other elements of infrastructure were improved because of how Germany focused on its industries.

The Value of the Sugar Beet

Other reasons help explain how Germany became an industrial giant in the late 1800s. They still go beyond the matters we’ve discussed already. For instance, the contributions of the agricultural sector cannot be ignored if you want to understand why Germany became such a powerful force on the global stage from an economic perspective.

The nation adopted a different approach when it came to agriculture. Different crops took on a new level of importance within Germany’s agricultural sector. Those crops included potatoes and turnips.

A particular crop of interest for Germany during that time was sugar beet.

Sugar was extracted from beets as far back as the 1700s, but it wasn’t a major process then. It took Napoleon Bonaparte to realize the usefulness of the sugar beet for it to become a major crop.

France dedicated factories to cultivating sugar beets, but these efforts were not enough to propel the crop to the global stage. The rest of Europe had to understand the value of sugar beets so that they could be utilized as well as possible.

Germany noticed how valuable the sugar beet was. It became a primary crop for the nation, and farmers in different states, including Saxony, devoted more resources to sugar beets.

The investment in sugar beets proved immensely beneficial to Germany. Even to this day, the crop above remains vital to global sugar production.

Agricultural Improvements

Germany’s economy benefited immensely from its adoption of new primary crops. However, that alone doesn’t explain why the agricultural sector contributed so much to the expansion of the economy.

How did Germany become an industrial giant in the late 1800s? Their willingness to innovate to grow their crops definitely played a factor.

The works of famed chemists greatly affected crop production techniques in Germany. The research they produced gave people a better insight into how fertilizers affected crops. Thanks to their efforts, German farmers could grow their crops more efficiently.

The German farmers also deserve some credit for how well they embraced the innovations being introduced. When they were shown that the methods they were using previously were inefficient, they did not hesitate to make the switch. Making a big change like that is not always easy, but they were more than willing to do so.

During that time, German farmers were also given new tools to further improve their work. Those tools proved similarly helpful in ramping up production. Germany became one of the leading producers of crops throughout Europe.

The Foundation of the Future

Now that we know more about Germany’s industrial history, it’s easier to understand how the nation became such an economic force. We no longer have to wonder how Germany became an industrial giant in the late 1800s. Given how Germans perceived innovation, the rise of their nation was likely inevitable.

The way the German economy developed during the late 1800s paved the way for the growth of new industries at the turn of the century. Previously, budding industries became more important parts of the new German economy, and their development was remarkable.

Research into fertilizers allowed Germany to become one of the leading developers of chemical products. Certain products and processes they pioneered remain hugely beneficial up to this day.

All of the resources invested in industrialization led to further developments. Not long after Germany embraced the Industrial Revolution, it became a leading manufacturer of automobiles and other electrical products.

A unified Germany has done amazing things in the past. It will undoubtedly continue to be a beacon for innovation and efficiency in the future.

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