Farm Labor and Power Politics: Germany, 1850–1914

Understanding the political impact of economic growth requires knowledge of the timing of structural changes within a national economy. The decline of agriculture's share in the national economy and variations in regional economic structures are of particular importance. The corrected figures on farm employment discussed in Section II indicate that between 1861 and 1907 the share of agriculture in national employment in Germany declined considerably more rapidly than appears in the census results; regional shares also tended to diverge from each other and from the average throughout the period. New international competition and the thrust of urban and industrial development required regional readjustments within German agriculture. They also made it progressively more difficult for agricultural regions to compete for resources and markets without outside help. In the absence of internally generated pressure from commerce and industry, the elite in the eastern regions of Prussia opposed outside help whenever it threatened the local economic structure. The result was to increase the dependence of the region's labor for jobs on relatively declining regional industry. The response of the landowners to these changes in turn strongly influenced national political groupings. The whole experience laid a foundation for the reaction in German political life to the social discontents and economic miseries of the First World War and decades following.