What was the political and economic atmosphere in Germany before 1918? The German Empire, which was founded by Otto von Bismarck, the Prussian Prime Minister, on January 18 1871, was the unification of 25 independent state. The empire lasted until the end of World War 1 in 1918. ‘The German Empire’s constitution was a federal one’ (“BBC”), and since it had many different bodies, it was hard to govern. ‘There were two houses in the German Empire; the house that represented the people, the Reichstag, and the house that represented the 25 states, the Bundesrat’ (“Britannica”). The central government found it difficult to raise tax to cover its spending since the 25 states controlled the income tax. Despite Caprivi giving up his position as the Prime minister of Prussia, the Prussian influence was still dominant. The Chancellor, who was in charge of the government and was unelected, ignored the poor living and working conditions, that had been cause by Germany’s growing population because of industrialization. However, the major problem with the government was its lack of organization as well as ‘one major prerequisite for a parliamentary system of government’ (“Deutscher Bundestag”). The rapid industrialization that Germany experienced in the second half of the 19th century had a very positive effect on Germany’s economy. The heavy industries in Germany, such as agriculture, had been replaced by modern industries. ‘By 1900, the German Empire had the largest industrial economy in Europe’ (“BBC”) and second in the world after the United States. The rapid increase in the industry led to the increase of people living in big towns and cities. 60% of Germans lived in cities by 1910 and the population in towns quickly grew between 1875 and 1910. ‘The unification had removed the border tariffs and trade duties which had existed before 1971’ (Encyclopedia Britannica”) and the government began to implement policies that increased industrial expansion. Banks in Germany increased and eventually Germany could cover the labor spending of industrialization. Bibliography Bayley, Charles Calvert, and George Hall Kirby. “Germany.” Encyclopædia Britannica, Encyclopædia Britannica, Inc., 20 Feb. 2019, www.britannica.com/place/Germany/The-economy-1870-90. Editors, History.com. “Kaiser Wilhelm II.” History.com, A&E Television Networks, 14 Apr. 2010, www.history.com/topics/worldwar-i/kaiser-wilhelm-ii. Elkins, Thomas Henry, and Henry Ashby Turner. “Germany.” Encyclopædia Britannica, Encyclopædia Britannica, Inc., 20 Feb. 2019, www.britannica.com/place/Germany/Germany-from-1871-to-1918. “Germany before World War I.” Nazi Germany, 7 Feb. 2019, alphahistory.com/worldwar1/germany/. “Germany before World War One 1890-1914 - AQA - Revision 3 - GCSE History - BBC Bitesize.” BBC News, BBC, www.bbc.com/bitesize/guides/z36wycw/revision/3. Schmidt, Stefan. “The Empire (1871-1918).” Deutscher Bundestag, www.bundestag.de/en/parliament/history/parliamentarism/empire/empire/200352. What challenges did Germany face after WW 1? The Treaty of Versailles was signed at the end of the war by the allied powers (Britain, France, Russia and Italy) and Germany on June 28 1919. This treaty had a major impact on Germany and further weakened it. The treaty stated that Germany should take the blame for starting the war and assume all responsibility, Germany’s military power would be decreased, Germany would have to pay £6,600 million for reparations and damaged caused, Germany would lose land and Germany would not be allowed to be a member of the League of Nations (“Britannica”). Many people thought this had been a very unfair and harsh action to take upon Germany. Germany struggled economically because of the treaty as there was unemployment and discontent and they had lost 10% of their land. In 1922 they were humiliated as the French had to secure their payments since they had not been able to pay the reparation repayments. Germany’s economy suffered the most after the war, throughout World War 1 the industrial output fell by 45%. Germany was left isolated after the war and there was barely and trades happening between countries. There were food shortages and the working conditions were terrible. After Germany’s defeat in the war, the Kaiser was forced to abdicated, leading the Weimar Republic to be formed, which lasted until the rise of Nazi Germany. The defeat of the war led to political instability and radicalism grew amongst Germans as a consequence of food shortages and poor living conditions, and as a result, people began support extremist views such as communism. ‘Rebellions grew and in 1919 over 50,000 Spartacists rebelled in Berlin’ (“BBC”). Violence also rose and 356 government politicians were assassinated by nationalists’ terrorists. On November 8, 1923, 600 stormtroopers alongside Hitler, marched into a meeting held by Kahr and Lossow, forcing them to agree to rebel. The next day Hitler went to Munich thinking he could take over, however the police and army intervened and 16 Nazis were killed. Hitler was arrested two days later. Bibliography Brief History of the City of Lviv, www.history.ucsb.edu/faculty/marcuse/classes/33d/projects/1920s/Econ20s.htm. Britannica, The Editors of Encyclopaedia. “Treaty of Versailles.” Encyclopædia Britannica, Encyclopædia Britannica, Inc., 25 Oct. 2018, www.britannica.com/event/Treaty-of-Versailles-1919. “Problems Facing the Weimar Republic, 1919-1933 - Revision 1 - GCSE History - BBC Bitesize.” BBC News, BBC, www.bbc.com/bitesize/guides/zgf3nbk/revision/1. “The Aftermath of the First World War.” Deportation and Transportation – The Holocaust Explained: Designed for Schools, www.theholocaustexplained.org/the-nazi-rise-to-power/the-effects-of-the-first-world-war-on-germany/. “The Impact of the First World War on Germany.” Schoolshistory.org.uk, Schoolshistory.org.uk, schoolshistory.org.uk/topics/european-history/weimar-nazi-germany/impact-first-world-war-germany/.