Imperial Germany and the Industrial Revolution

Thorstein Veblen, an American economist, explored the intersection of economics and social institutions. In his 1915 work, Imperial Germany and the Industrial Revolution, Veblen posited that Germany's autocratic government provided an advantage in channeling technological advancements for state benefit, unlike democratic nations. He suggested this advantage was temporary, as Germany's economy would eventually develop its own patterns of excessive spending. Veblen's broader work, including The Theory of the Leisure Class (1899), critiqued the wealthy and coined terms like "conspicuous consumption".1

The German Empire, established in 1871, experienced rapid industrialization, particularly after 1890. Steel production surged, surpassing Britain's by 1893, and by 1914, Germany was a major industrial power. This growth led to significant urbanization, with a majority of the population living in cities by 1914. Despite industrial advances, traditional artisanal enterprises and small farms persisted, and some workers turned to antisemitism during economic downturns.23