THE SECOND INDUSTRIAL REVOLUTION IN CONTINENTAL EUROPE AND USA


French economy and industrial progress after the Franco-Prussian War (1870) in compare with other states stayed behind. France was forced to cede Alsace-Lorraine to Germany and pay large war indemnity. With loosing Alsace-Lorraine France lost also important economic land which was full of mines, while paying the war indemnity prevented the French to invest in their economy. In French population dominated peasants which small purchasing power that's why had French industrialists bigger profit with export of capital into Balkan lands, Turkey and Russia. Before the World War I was France by exported capital on the second place, while was it's production of coal, heavy industry and foreign trade in compare with other states fall even further back. But nevertheless France became in the period of the Second Industrial Revolution the second colonialist power.

After the unification in 1871 Germany had a lot of capital because France had to pay five-billion francs in war indemnity which Germany invested into it's economy. In Germany rapidly developed cartels which were supported by the state with protective customs. For that reason cartel could sell their products by much lower price than it was the price of imported raw materials. Later enabled Germany to become the leading power in production of steel, chemical industry and electrical engineering.

The end of the American Civil War (1861–1865) removed all obstacles for fast economic progress of the United States of America. The Emancipation Proclamation freed all slaves in the USA and created large working force of former slaves. Expansion of the USA on the west and construction of railway enabled the transformation of prairie into agricultural areas and opening of mines of copper, lead, silver and gold. In Pennsylvania was in 1889 found oil what additionally fastened the progress of US economy. In 1840 was US economy on the 5th place, in 1860 on 4th and in 1894 reached the half of industrial production of Western European powers together. The United States of America became the leading economic power and also the first agricultural power.