The Victorian Era, 1870 - 1914:

Victorian Economics

AP European History

Androstic

2012-2013

Overview

•From 1870 to 1914, Europe had rapid economic growth

•The basics of our modern economies emerged

•Topics•Second Industrial Revolution

•Free Trade

•The Gold Standard

•Corporations

1. What technological advances contributed to the “new Industrial

Revolution” after 1870?

Study Guide – Section 72, #1, Palmer pg. 574

Second Industrial Revolution

Refined Steam EngineInternal Combustion

Engine

AC Motor

Study Guide – Section 72, #1, Palmer pg. 574

Telephone

Alfred Nobel

Bessemer Steel

Still from Georges Melies A Trip to the Moon (1902)

Study Guide – Section 72, #1, Palmer pg. 574

2. What was the status of free trade in the years 1846 to 1914

Study Guide – Section 72, #2, Palmer pg. 575-576

Free Trade

•Free Trade the mantra of most states•But most states imported more than they exported - opposite of mercantilism

•How can you spend more than you make?

•Export of European capital•Invested money outside the country

•Invested money yielded returns - profits and interest

•Allowed for a rise in standards of living domestically and internationally - especially in the USA

Study Guide – Section 72, #2, Palmer pg. 575-576

3. How did the gold standard facilitate international trade in

this age

Study Guide – Section 72, #3, Palmer pg. 579-580

Gold Standard

Study Guide – Section 72, #3, Palmer pg. 579-580

4. In what sense had a true world market been created?

Study Guide – Section 72, #4, Palmer pg. 580-582

5. What kinds of insecurity resulted from the capitalist

economy? What devices were resorted to in order to combat

insecurity?

Study Guide – Section 72, #5, Palmer pg. 580-583

6. Explain the important changes in capitalism about 1880. What were some of the political and social effects of these changes?

Study Guide – Section 72, #6, Palmer pg. 582-583

Boom and Bust Cycle

Corporations

John D. Rockefeller

Summary

•The Second Industrial Revolution led to an incredible growth in energy source - oil!•New technologies “enlightened” Europe•The modern business structure emerged

•Boom and bust cycle

•Corporations, monopolies, and trusts

•Captains of industry grew fabulously wealthy