INDUSTRIAL REVOLUTION:.
The industrial revolution hit Germany extra hard compared to other European areas. Between 1850 -1870, the German economy rapidly advanced with new factories, textile and iron production, rail roads, coal production and record exports. This made the population grow quickly and the middle-class expand. With Zollverein (customs union covering the 18 states) and the advancement in industry, Germany became economically united and partially culturally united before 1871. German states became linked by railroad and telegraph wires further encouraging unification. The Austrians were excluded from Zollverein and the German infrastructure, were perceived by German people as outsiders.
In 1862, Otto Von Bismarck became the Prussian Chancellor intending to unite Germany under Prussian Rule. He would achieve this through the use of charismatic leaders, granting limited power and the use of army power if needed. He declared "Iron and Blood" (war and industry) would gain unification, not speeches and declaration as in the revolution of 1848.
GERMANY AT WAR.
To achieve Bismarck's goal, to unify Germany under Prussia, he needed people on his side and to stop other countries from forming a coalition against Prussia. Using the Prussian army to attack others would look like Prussia was striving to become "too powerful". This meant Bismarck had to provoke others to attack him.
In 1863, Denmark tried to take away the autocracy of the two northern most German states, Schleswig and Holstien. Bismarck announced that this was completely unacceptable to German Confederation. Austria and Prussia together went to war against Denmark. Against the Frankfurt Assembly's wishes, Bismarck increased the size of his army significantly, hoping to quickly become victorious. He hoped that victory would justify his defiant domestic policy and give him the upper hand over his enemies. His superior army along with Austria defeated Denmark.