The German Empire left a legacy of mixed fortunes for Germany and Europe. Under Bismarck, a united German state had finally been achieved, however, it remained a Prussian-dominated state and it did not have German Austria within it as Pan-German nationalists had desired. Influence of Prussian militarism, the Empire’s colonial efforts and its vigorous, competitive industrial prowess caused a negative view of the state. The German Empire enacted a number of progressive firsts, such as establishment of a system of public welfare (still in place today), other social reforms, as well as guaranteeing freedom of press. There was also a modern election system to the federal parliament, the Reichstag, which represented every adult man by one vote. This enabled the Socialists and the Catholic Centre Party to play remarkable roles in the empire's political life.
The history of the German Empire is well remembered in Germany as a period when academic research and university life flourished as well as arts and literature. Thomas Mann published his novel Buddenbrooks in 1901. Theodor Mommsen was awarded the Nobel prize for literature a year later for his Roman history. Painters like the groups Der Blaue Reiter and Die Brücke made a significant contribution to modern art. The AEG turbine building in Berlin by Peter Behrens from 1909 can be regarded as a milestone in classic modern architecture and an outstanding example of emerging functionalism. The social, economic, and scientific successes of this Gründerzeit, or founding epoch, have led the Wilhelmine era to sometimes be regarded as a golden age.
In the field of economics the "Kaiserzeit" lay the foundation of Germany being one of the world's leading economic powers. Especially the iron and coal industry of the Ruhr area, at the Saar Bassin and in Upper Silesia contributed much to that process. The first motorcar was constructed by Karl Benz in 1886. The enormous growth of industrial production and industrial potential also led to a rapid urbanisation of Germany, which turned the Germans into a nation of city dwellers.
The empire's support of Austria–Hungary's invasion of Serbia against Russia's opposition has been seen by a number of historians as a major influence in what caused the clash of alliances in Europe which resulted in the massive war later known as World War I. The defeat and aftermath of World War I and the territorial and economic losses imposed by the Treaty of Versailles caused enormous ramifications for the new German republic, such as defining what the German state was and how it should operate. Conservatives, liberals, socialists, nationalists, Catholics, and Protestants all had their own interpretations, which led to a fractious political and social climate in Germany in the aftermath of the empire's collapse.
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