German Economy
A short look at the economic history of Germany.
Ancient Economies of Germany
The German economy has historically benefited from its position at the center of Europe. While its location facilitated trade, it also made the region a competitive and often contested environment. Organized trade likely began thousands of years ago between ancient Germanic tribes and their neighbors. During this time, most Germanic groups were hunters and gatherers, though a few adopted agriculture as well. Rome’s expansion into Europe and gradual collapse brought new trade and goods into the region. Resistance to the Romans encouraged the tribes to form more complex societies based on both diplomacy and warfare. By the early medieval period, what is now Germany had settled into a rural economy powered by peasant farmers. These serfs supported smaller populations of knights, landowners, wealthy merchants, clergy members, and nobles.
German Guilds and Trade in the Middle Ages
As the Middle Ages progressed, skilled German craftsmen and traders began to organize into urban guilds. Each guild trained its apprentices in crafts like textiles, glass-blowing, masonry, and carpentry. Before an apprentice could become a full guild member, he needed to demonstrate consistent quality and reliability in his trade. This ensured the good reputation of German wares, a reputation that has survived to the present day.
In time, certain cities united their guilds to form powerful leagues. The most important of these was the Hanseatic League of Northern Germany, which existed in the 13th to 15th centuries. It was designed to protect merchants and regulate the flow of northern goods. The League attained monopolies and favorable terms wherever it could. Sometimes, trade conflicts with the League could lead to armed conflict. Guilds and their leagues allowed cities to grow wealthy and powerful in relative independence. Elite councils of patricians and burghers ruled the Free Imperial Cities, typically with the support of one or more local guilds. Beneath them, common townspeople worked as laborers, craftsmen, sailors, and minor merchants.
Modern German Economics
Despite its thriving merchant class, Germany’s cities remained relatively small until the modern era. A push to modernize farming in the mid-19th century made industrialization possible on a large scale. Germany entered the 20th century as the largest economy of Europe. Defeat in World War I, however, plunged the nation into a long period of economic turmoil. The National Socialist Party under Adolf Hitler sought to stimulate production by privatizing industries and expanding German territory through military expansion. A second defeat in World War II and the subsequent division of Germany sent its economy into another steep decline. The Marshall Plan of the 1950s and ‘60s helped West Germany regain its footing. East Germany, restored to German control in the ‘90s, experienced similar but slower progress.
Today, Germany is Europe’s largest economy and a major participant in the Eurozone. It represents the fifth-largest economy in the world. The country is still known for producing high-end products with leading engineering and design. Among its primary industries are manufacturing, automobiles, energy, and electronics.
References
Bernstein, Eckhard. Culture and Customs of Germany. Greenwood Press. 2004.
Fullbrook, Mary. A Concise History of Germany. Cambridge University Press. 2004.
Music and German National Identity. Celia Applegate and Pamela Potter, eds. University of Chicago Press. 2002.
O'Connor, Liz, et al. “The Largest Ancestry Groups In The United States.” Business Insider, Business Insider, 13 Aug. 2013, www.businessinsider.com/largest-ethnic-groups-in-america-2013-8.
Sidgwick, Cecily Ullman. Home Life in Germany. MacMillan Company. 1912.
Simons, Gary F., and Charles D. Fennig. “Summary by Language Size.” Ethnologue, SIL International, www.ethnologue.com/statistics/size.
The Cambridge Companion to Modern German Culture. Eva Kolinsky and Wilfried van der Will, eds. Cambridge University Press. 2004.
“The World Factbook: Germany.” Central Intelligence Agency, Central Intelligence Agency, 15 May 2018, www.cia.gov/library/publications/the-world-factbook/geos/gm.html.
About TOTA
TOTA.world provides cultural information and sharing across the world to help you explore your Family’s Cultural History and create deep connections with the lives and cultures of your ancestors.
