Growth+of+Prussia+1815-82

• **__The Industrial Revolution__** – Prior to 1815, Prussia’s economy was mostly based on agriculture and was consequently weak (Nosotro). – In 1814-1815, Prussia had seized the Rhineland including a significant amount of coal and iron also found in the Saar valley and Upper Silesia (Murphy). – The industrial revolution started in Prussia in 1815 (Nosotro) with a notable participation from the government (Murphy). – Tax reforms, road building programs, technological education, and a banking system were put in place by various significant figures prior to the 1848 revolutions (Murphy). – The workforce could’ve been replaced by machinery, which made lowered the wage rates (Gildea). – Prussia had become the leader in heavy industry and which technology led it to the most modern and militarized state benefiting the coal and iron industries (Murphy). The Krupp factories developed into the largest industry in Prussia, producing cast steel which was highly demanded by the Prussian government for the military (Murphy), which was supported by the chancellor, Bismarck, who was known for his pro-militarism view (Wells). – Prussia was also influenced to look for free trade because its industrialization and expansion in the iron industry made an economic boom possible through trade (Gildea). – As the middle class blended with the nobles with the new industrial system the 1848 revolutions emerged which created in more independence due to new policies within the industrial Prussian world and resulted in a positive trend for its economy (Nosotro). Prussia had been recognized as the leader for negotiations on behalf of the whole nation and the whole nation adopted all there tariffs (Murphy). The Zollverein, founded in 1834 by king Fredrick William of Prussia, was an economic union for most German states, neglecting Austria, which evolved into a customs union by 1847 (Chastain). • It combined all economic unions among Prussia and the northern German states founded in the 1820s (Murphy). ). • Austria refused to be a part of a “unified Germany” because it stood for its own nationalism and economic strength because around 1815(Murphy), Austria was the wealthiest German State and the leader of the German Confederation (Gildea). • Austria was never considered in the Zollverein and stood strongly against it (Chastain). Industrial Situation: – Austria, unlike most of European countries and states, did not experience to industrialization (Gildea). – Austria, along with the southern German states, was strongly active in the textile industry (Gildea). – Britain was Austria’s main competition in this industry (Gildea).
 * Growth of Prussia 1815-82: political and economic factors including the German Confederation, the Zollverein; Prussia-Austrian relations to 1866**
 * By Wassim Benani & Reda Benjelloun**
 * __Free Trade:__**
 * __Zollverein:__**
 * __Austrian Economy:__**

– A battle about free trade and the supremacy of the German Confederation had started between Prussia and Austria (Gildea). • In 1849 and 1852, Austria created an economic Mitteleuropa, “a customs union with high protective tariffs which would attract the industrialists of [southern Germany] away from the Prussian-managed Zollverein,” and wasn’t successful (Gildea). – By 1864, it lost the majority of its wealth due to the finance of its military for the wars with Italy and Denmark (Murphy). – In 1866, the Austro-Prussian War broke out (Murphy). • It forced Austria to give up some of its land and almost destroyed its economy (Murphy). Austria was bankrupt (Murphy), and had to turn to France as a potential ally against Prussia (Long).