During this period, Austria also continued industrial expansion, but at a slower pace than Germany.

With growth came further instability. Investment and founding of new organizations exploded since 1867, with over 400 new corporations being founded (Pulzer 1964) from 1867 to 1872. This was the age of the Gruender, which meant "entrepreneur," but also came to be associated with financially shaky schemes which resulted in the bursting of a speculative bubble in 1873.

The period of the Liberal government spanned from 1867 to 1879, a period during which Austria lost its power and prestige, unemployment and economic insecurity reigned, and newly-vociferous minorities were exerting their rights to equality in language and culture. In the meantime, Germany seemed to be growing from success to success, as its liberalization engendered national unity and a growth in wealth and military power.

Conservative Ascendancy in Austria

The nature of the conservatives in Austria was...
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