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BISMARCK AND THE SOCIALISTS 1871-1890
The German left started as two smaller groups; the General Workers' Association (Allgemeiner Arbeiter-verein) founded in 1863 and the Social Democratic Workers' Party founded in 1869 (in Saxony).

Bismarck feared the socialists especially after the events in Paris during the end of the Franco-Prussian War 1871. Over 20.000 people were killed in what has been claimed to be the very first proletarian uprise conducted by the working class and their leaders directed against capitalism (the uprise is called the Paris Commune and it lasted between the 18th of march to the 28th of May in Paris 1871 - here is a link to some more information about the PARIS COMMUNE).

Bismarck also resented the socialists because they refused to support the Franco-Prussian War in general and they were against the annexation of Alsace-Lorraine after the war. Another problem was their open protests against his new economic policy 1878 (protectionism) which made the food more expensive...
People employed within the agriculture sector had been hit badly by the depression in the 1870's. Many lost their jobs and they now went to the urban areas looking for jobs. The German industries were in great need of workers so they employed several of the ex-agricultural workers. The life in the city was hard:
  • The workers worked very long hours
  • The workers were poorly payed
  • The workers often lived in slum areas (or semi-slum areas)
  • The home environment was often unhealthy. The urban areas did not have enough housing for the vast amount of people that moved into the cities. Several parts of the existing buildings that should never been used as a place to live was now being used as well as fast built "shacks" - just so there would be a place with a roof over their head...
  • The working environment was not better - it was in general unhealthy and fairly often dangerous...
  • The protectionistic economic policy made food more expensive which became a big problem for a poorly paid German worker
Bismarck did not really know how to deal with the unsatisfied German working class but after two attempts to kill Wilhelm II (they failed and there is no proof of any socialist involved) Bismarck decided to act. He started by dissolving the Reichstag (1878). When the new members (more conservative and patriotic) were gathered they supported Bismarcks suggestion of anti-socialist measures. These measures (Socialistengesetz) - the Law of October 19th 1878:
  • banned any group aimed at the spread of socialist principles
  • banned any meeting aimed at the spread of socialist principles
  • outlawed the trade unions
  • forced the closing of 45 newspapers
The law was first in operation two and a half years but after that it was renewed regularly until 1890! This was the "wip" but no the workers also needed a "carrot".
Bismarck called the second part of his programme against SPD "State Socialism". In short it was governmental action to improve the conditions of the German Workers. These improvements included:
  • Medical insurance (1883)
  • Sick Pay (1883)
  • Insurance against industrial injuries (1884 - financed by the employers)
  • Old Age Pensions (1889)
  • Disability insurance (1889)

These measures did not have the respons Bismarck wanted - a declining membership of SPD. In 1884 SPD had around 550.000 members - in 1890 they had nearly 1.5 million members (1.427.000 members). It was obvious that the German working class saw Bismarcks reforms as a fraud... and they turned to SPD - the German Social Democratic Party who they beleived was the only one that could help them against their poor working and home conditions.
Several historians claim though that "Bismarks' welfare legislation based on compulsory insurance was the most successful in Europe"... Others like Erich Eyck claims that "the policy was a fraud - Bismarck tried to just gain some short-term political advantage"
A.J.P. Taylor claims that "Bismarcks' policies defused the threat of working-class opposition to the state. The German working class became subservient to government policies - up to 1914"
Stephen Lee claims that "Bismarcks' campaign against the SPD not only failed in its attempt to eliminate socialism but actually contributed to it's eventual emergence as the strongest single element in the Reichstag 1913"