POL218Y5 Lecture Notes - Lecture 9: Keynesian Economics, German Federal Bank

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11 Feb 2016
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LECTURE 9
e.g parliamentary supremacy
Here we make a huge transition in the course.
Both Germany and Japan are fascinating
they are both late industrializers; countries that came late to the
industrial revolution
they both experience the industrial rev in the middle to the second half
of the 19th century and they both have no liberal rev
and industrialization and the emergence of capitalism are relatively
condensed in these 2 countries
so both of them go from having remnants of a feudal system into
commercial and industrial capitalism in a relatively
compressed time period
One of the consequences of this is that both of them missed a critical
stage in the dev of liberal democracy that Britain, France and US
(the 3 countries with liberal revolutions) Germany and Japan
missed a crucial step in that process
If you read Lord or Duverger, the answer should be obvious
The most probable explanation for why those 2 countries would miss a
critical step?
first of all whats the critical step both of them missed? liberal
revolution
There is no liberal revolution in both of these countries
They are both governed by very authoritarian forms of gov down
to in Germanys case WW1, it has the brief liberal
government in the 1920s then it reverts back to a fascist
dictatorship under Hitler from 1932 till WW2
and Japan becomes the equivalent of a military dictatorship
under the emperor in 1930s until the end of WW2
What’s the most logical explanation for why there is no liberal revolution
and why an authoritarian form of gov persists so long in these
countries?
something is missing that is usually considered to be a
prerequisite to a liberal revolution?
the critical socio-economic problem is that there is no middle
class.
there is one by the 19th century, but it is quite small and
weak
power in both economic social and political power in both
countries remains with the landed aristocracy
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Slide: Germany: Revolution from Above
Two historical legacies
Germany is strange until the third quarter of the 19th century.
It is large territorial space at the centre of Europe but its doesn’t have a
cohesive or integrated form of territorial government until the end of the
19th century in 1871
Failure of large scale political units
Legacy of Carolingian an Holy Roman Empires
Germany divided into 300 sovereign entities for almost 1000
years
It takes the form of a Holy Roman Empire until the
end of Westphalia
Throughout this period, its divided into like 300
parts.
Germany is a territorial mess
It also differs from countries like Britain in that it doesn’t have a
territorially based legislature
Absences of territorially based legislatures
It’s feudal legislature is based on ‘stand’ which is the german
word for social groups, corporate bodies, etc
Tradition of the 'stand' organized into corporate bodies
Absolutist monarchs encountered weak resistance from corporate
legislative bodies
And when the absolutist monarchs begin to emerge in Germany
in the 1600s there’s little resistance.
There’s no strong parliamentary body to assist them as was the
case in Britain; there’s no need to call the legislature for
taxes, as was the case in France; there’s no chance of a rev
as occurred in France
and over the course of German history from the end of the 30
year war, the Treaty of Westphalia in 1648, one dutchie, the dutchie of
Brandenburg begins to emerge as the strongest territorial unit both politically and
militarily
Brandenburg-Prussia emerged as core of Germany after 1648
over the next 200+ years it expands to form the core nucleus of what
becomes the modern German empire
Germany united as the Second Reich under Bismark in 1871
Hitler called his regime the 3rd reich.
Reich is the german word for empire.
Reason he called it the third one is because the first one was the Holy
Roman empire, the second is the second empire created by
Bismarck in 1871 and Hitler’s fascist regime was referred to as the
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third Reich
Rise of militarism and authoritarian political culture exaggerated in
Germany- symbols of democratic regime, without the
substance
Failure of democracy - Second and Third Reichs
Democracy in Germany is extremely weak and takes a long time to take
hold.
so germany’s unified in 1871, an empire is created, there is a
legislature, there are elections, but all power rests with the Kaiser
(which means emperor)
Particular kaiser Wilhelm who rules from 1888 through the end of world
war 1, was a particularly authoritarian kaiser
After WW1 germany briefly experiences a liberal constitution known as
the Weimar Republic
Weakness of Weimar Republic
it collapses in the mists of the depression
Hitler comes to power
Rise of Hitler - World War II
The miracle of Germany is the success with which Germany recreates a liberal
democratic constitution after WW2
Germany is divided between East and West based on where the occupying
armies, and the allied armies.
Germany is divided into 4 sectors in 1945
French, British, American and Russian
The Russian sector becomes the German Democratic Republic which
lasts from 1945 until 1989
Reunification take place in 1991
Germany’s role in creating the European Union (?)
Restoration of democracy with Federal Republic
Division of Germany - East and West
Integration of Germany into European Economic Community -
European Union
Reunification in 1991
Slide: Federal Republic of Germany
• [map]
The forerunner of modern Germany begins to take shape in the dutchie of
Brandenburg at the end of the latter half of the 1600s
It is lead by —
If you go back to the Tilly article when he talks about factors that help explain
which territorial units succeed in surviving this process of consolidation as
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