Moreover, the economic impact of the Treaty of Versailles was crushing. Germany lost 13 per cent of her territory, 10 per cent of her population, 15 per cent of arable land, Huge amounts of ships and shipping facilities and of railway rolling-stock were delivered to the Allies.
The years 1880-1914, was one of the most explosive periods of .
industrial growth. Cities mushroomed. For example, Berlin went from a .
population of 600,000 in 1870 to 2 million by 1910. This rapid growth .
brought with it social problems. There were clashes over power, over .
ideas, over religion, over language, and a growing dissatisfaction with the monarch - type of rule. Germany was becoming modern and yet it was still archaic. This led to the formation of the German Social Democratic Party. It created a state within the state, hostile to the Kaiser's regime and dedicated to its overthrow. Kaiser Wilhelm II had absolute power over the army. He alone presided over the nation's foreign affairs. It was his decision to say if Germany went to war. He felt that since Germany had the best steel mills, were the leaders during the machine age, had the most powerful engineering industry, the best chemists, and the mighty German Army, superior to any other army, that Germany should share in world affairs by expanding abroad, and become more imperialistic. He felt economic power should be reflected in political power. He ordered the build up of the Navy, which poisoned his relations with England.
