Deutsche Bank

Germany, compared to the US and Britain, was industrialized relatively late. In the 19th century, both Germany and the US were seen as competitors against the UK, based on the progress they made during the second industrial revolution. A difference during this time was the German approach to cooperative capitalism, where instead of consolidation and mergers and acquisitions, a nationwide cartel was formed based on different products. By this sort of cooperation, Germany became a true force to be reckoned with.

Both US and Germany capitalized on new methods of mass production as per the industrial revolution, and was focused on economies of scale and productivity gains. Production was also more efficient due to management. Additionally, US had protective tariffs, which strengthened their national markets. Low internal taxes also contributed to this effect. The country has always had high levels of protection, unlike Germany, which was a little more free-trade advocating. The national power was more centralized compared to the US, so that decisions were made more efficiently and required less majority approval. The US Congress and Senate were always slow on deciding the federal role in the economy.

German workers were also more highly organized, which has become a distinctive German trait. The existence of unions in Germany was higher than in the US or Britain, and were more centralized additionally. US’s historical fear of centralized power or socialism did not exist in Germany, so they were less squeamish about a large government. Cartels were also treated differently in Germany, because Germans benefitted from collusion while Americans were too competitive to make it work.

Especially during wartime, Germany operated under a command economy, and had price controls and regulations – to hide the rate of inflation and create a black market. Germany’s wars also radicalized the middle class, who felt more impoverished, and this issue required additional