1. The Victorian Era, 1870 - 1914: Victorian Economics AP European History Androstic 2012-2013

2. 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

3. 1. What technological advances contributed to the “new Industrial Revolution” after 1870? Study Guide – Section 72, #1, Palmer pg. 574

4. Second Industrial Revolution Refined Steam Engine Internal Combustion Engine AC Motor Study Guide – Section 72, #1, Palmer pg. 574

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

7. 2. What was the status of free trade in the years 1846 to 1914 Study Guide – Section 72, #2, Palmer pg. 575-576

8. 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

9. 3. How did the gold standard facilitate international trade in this age Study Guide – Section 72, #3, Palmer pg. 579-580

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

11. 4. In what sense had a true world market been created? Study Guide – Section 72, #4, Palmer pg. 580-582

12. 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

13. 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

14. Boom and Bust Cycle

15. Corporations John D. Rockefeller

16. 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