Bismarck and Socialism

What is Socialism?

It is a political, social and economic policy that encompasses a range of social and economic systems
that are characterised by social ownership of the means of production and workers' self
management of enterprises.

It is the idea that markets should be controlled and aimed to benefit all rather than the few.

The Development of Socialism in Germany

1863 General German Workers’ Association founded in Leipzig, Saxony

1869 Social Democratic Workers’ Party of Germany founded in Eisenach, North

German Confederation

1875 Socialist Workers’ Party of Germany (a merge of the above parties) formed

1891 Party renamed as Social Democratic Party of Germany (SDP)

Why did Bismarck see the Socialists as a threat?

● Recent events at the Paris commune scared Bismarck

● The Social Democratic Workers' Party had refused their support for the war of 1870
● The speech in 1871 of August Bebel a prominent socialist in the Reichstag where he said that
the ‘cries of the proletariat in Paris will soon become the cries of the proletariat world wide’.
● Bismark saw socialism, especially international socialism as a great evil and a threat to every
nation state in the world

"The Socialist Jack in the Box", Punch, (September 28, 1878)

The Gotha Program

In 1875, the SDAP met and formed their first manifesto. It was explicitly Socialist in nature:-

‘The socialist labour party of Germany endeavours by every lawful means to bring about a free state
and a socialistic society, to effect the destruction of the iron law of wages by doing away with the
system of wage labour, to abolish exploitation of every kind, and to extinguish all social and political
inequality.’

It called for:

1) Universal, equal suffrage for all citizens.

2) Legislation by the people.

3) Universal, equal and compulsory state education.

 4) A progressive income tax to replace indirect taxing.

5) The right to form trade unions.

6) A reduction in the working day.

7) The abolition of child labour

8) Protective laws for the life and health of workers.

Looking at Bismarck’s domestic policy aims, which of these clauses would most alarm Bismarck
and why?

2 would scare Bismarck as he aimed at preserving the influence of the throne and also the
chancellor. By allowing legislation to be decided by the people, this would undermine the role of
the chancellor and the throne as no longer would Bismarck be able to have complete control over
the policy passed. Furthermore a lot of these clauses would worsen the economy in the eyes of
Bismarck, more rights for workers will create more inefficiencies in the market, and therefore the
policy around creating a flourishing economy would be obstructed.

In October 1878, after two assassination attempts on Kaiser Wilhelm I in Berlin (in reality not
committed by Socialists but anarchists), Bismarck secured the passing of the ‘Law against the public
danger of Social Democratic endeavours’, or Anti-Socialist Law. The Bill passed by 221 votes to 149.

▪ Socialist meetings, organisations and associations were banned.

▪ Socialist publications were banned.

▪ Socialist agitators could be sent into exile.

▪ Other Socialists could be imprisoned or forcibly removed from their homes.

▪ Police powers were enormously increased.

Trying same tactics again but even more harsh

Effects of the Anti-Socialist Laws

Election results for the Socialist Workers’ Party of Germany, 1871-1884

1871 124,000 votes 3.2% of vote 2 seats in Reichstag

 1874 352,000 votes 6.8% of vote 9 seats in Reichstag

1877 493,300 votes 9.1% of vote 12 seats in Reichstag

1878 437,100 votes 7.6% of vote 9 seats in Reichstag

1881 312,000 votes 6.1% of vote 12 seats in Reichstag

1884 550,000 votes 9.7% of vote 24 seats in Reichstag

Did the Anti-Socialist Laws have the effect that Bismarck hoped?

It did not have the effect Bismarck desired as from 1878 to 1884 the Socialist party gained 15 seats
which is an extremely large jump. The percentage of the popular vote also increased by 2.1%
meaning that these socialist laws did not hinder the growth of the socialist party. However we can't
tell whether it slowed the growth of the socialist party, however the desired effect was to eradicate
it, as he said in his domestic policy, which he did not achieve.

State Socialism

Why did Bismarck change his tactics in regards to Socialism and what did he do?

Bismarck changed his tactics to incorporate more ‘socialist’ policies in order to win over some of
the socialists as he believed that socialism could not be conquered by oppression alone. He
believed that he could cure the issue by sporting out the cause in the first place, Workers
conditions.

In 1883, medical insurance and sick pay were introduced

● Workers responsible for funding this
Employers were responsible for funding of the scheme of insurance against industrial injuries
introduced the following year

Acts to provide some level of security for the workers (State socialism)
Finally in 1889, old age pensions were introduced, some two decades before their appearance in
Britain

Effects of State Socialism

Election results for the Socialist Workers’ Party of Germany, 1887-1890

1887 763,100 votes 10.1% of vote 11 seats in Reichstag

1890 1,427,300 votes 19.7% of vote 35 seats in Reichstag

Was State Socialism a success for Bismarck?

No it was not a success as it was a fraudulent approach to socialism, as seen by the huge number
of seats lost to the socialists and the large amount of popular vote they received. Between the
time the legislation was released the number of votes practically doubled making the socialist
party a lot more dominant.

- Erich Eyck saw the policy as a fraud, pursued for short term political advantages
- Argued it would have been better to roll back the restrictions on trade unions
- Argued that old age pensions were only paid to those who reached 70, an
extremely old age for industrial workers
- Yet these policies saw support from the socialist inteligencia at the time such as:
Max Weber, Brentano