the victorian era, 1870 - 1914: victorian economics

The Victorian Era, 1870 - 1914:Victorian Economics

AP European HistoryAndrostic2012-2013

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

Second Industrial Revolution

Refined Steam EngineInternal Combustion

Engine

AC Motor

Telephone

Alfred Nobel

Bessemer Steel

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

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

Gold Standard

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