Why is “Gretchen am Spinnrade” important in the history of the German lied?

"Gretchen am Spinnrade" (1814), a setting of a poem from Johann Wolfgang von Goethe’s Faust, is considered a masterpiece because it marked the creation of the German lied (art song) in a single stroke.1

The song is historically significant for its innovative integration of music and poetry. Schubert utilized the piano accompaniment to create vivid, graphic imagery—specifically the rhythmic motion of the spinning wheel—which perfectly mirrored the emotional and physical state of the character described in the text. This approach established a new standard for the genre, where the melody was engendered by the poem, and the harmony and accompaniment were shaped by the specific details of the poet's scene.1