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 Engine
Internal Combustion
Engine
AC Motor
Study Guide – Section 72, #1, Palmer pg. 574
Study Guide – Section 72, #1, Palmer pg. 574
Telephone
Alfred
Nobel
Bessemer
Steel
Still from Georges Melies A Trip to
the Moon (1902)
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