Louis Napoleon — now proclaimed Emperor Napoleon III — experienced both success and failure between 1852 and 1870, when he fell from power. In the 1850s, his policies led to economic growth. His government promoted the new investment banks and massive railroad construction. It also fostered general economic expansion through an ambitious program of public works, which included rebuilding Paris. The profits of business owners soared, rising wages of workers outpaced inflation, and unemployment declined greatly.

Initially, Louis Napoleon’s hope that economic progress would reduce social and political tensions was at least partially realized. Until the mid-1860s, he enjoyed support from France’s most dissatisfied group, the urban workers. Government regulation of pawnshops and support for credit unions and better working-class housing were evidence of helpful reform in the 1850s. In the 1860s, Louis Napoleon granted workers the right to form unions and the right to strike.

At first, political power remained in the hands of the emperor. He alone chose his ministers, who had great freedom of action. At the same time, Louis Napoleon restricted but did not abolish the newly reformed Assembly. Members were elected by universal male suffrage every six years, and Louis Napoleon and his government took these elections very seriously.

In 1857 and again in 1863, Louis Napoleon’s system resulted in overwhelming electoral victories for government-backed candidates. In the 1860s, however, this electoral system gradually disintegrated. A sincere nationalist, Napoleon had wanted to reorganize Europe on the principle of nationality and gain influence and territory for France and himself in the process. Instead, problems in Italy and the rising power of Prussia led to increasing criticism at home from his Catholic and nationalist supporters. With increasing effectiveness, the middle-class liberals who had always wanted a less authoritarian regime denounced his rule.

Napoleon was always sensitive to the public mood. Public opinion, he once said, always wins the last victory, and he responded to critics with progressive liberalization. He gave the Assembly greater powers and opposition candidates greater freedom; in 1870, he granted France a new constitution, which combined a basically parliamentary regime with a hereditary emperor as chief of state. Napoleon III’s attempt to reconcile a strong national state with universal male suffrage moved in an increasingly democratic direction.