Chapter 29

1. Chapter 29 The American Century

2. Postwar Economy • US government convinced sharp swings in business cycles could be manipulated through monetary and fiscal policy • Reconversion to peacetime economy • Economic boom due to pent-up demand and forced wartime savings • GI Bill of Rights – education and business

3. Postwar Economy • Taxes cut and price controls removed - Inflation and labor unrest led to Republican control of Congress • Taft-Hartley Act – passed over Truman veto – outlawed the closed shop and allowed presidential injunctions to prevent strikes that endangered national interests • Act hampered unionizing of new industries but not existing unions

4. The Containment Policy • Stalin continued to expand Soviet domination in Europe and Asia • US demobilized (6.5 million to 1.5 million) but Russia maintained huge army • Foreign officers warned against Russian aggression • The Sources of Soviet Conduct by George Kennan called for West to contain USSR

5. The Atom Bomb • Truman saw bomb as counterweight to Soviet power • Many scientists against use of bomb (Oppenheimer) – Truman doubted people would permit its use again • Proposed deal whereby UN would monitor nations to ensure no bombs made – US would destroy stockpile • USSR refused

6. Greece • Communist guerrillas waged war against Greek monarchy • Britain warned US they would cut off aid to Greece • Truman asked Congress for $400 million in aid for Greece and Turkey to fight communism • Using aid to fight communism = Truman Doctrine

7. The Marshall Plan • 1947 Sec. State George C. Marshall proposed US financed reconstruction of Europe – would even allow $ to Soviet Union and satellites • Europeans set up committee calling for $22.4 billion • Stalin afraid $ would draw satellites into US orbit – would not participate

8. The Marshall Plan • By 1951 Europe booming • Europe now divided into communist east and democratic west • West announced plans to create a new democratic West Germany • Russia responded with Berlin blockade • US and West responded with Berlin Airlift

10. Japan and China • US occupied Japan and did not allow USSR a role in China • General MacArthur - military governor of Japan – helped create stable, prosperous state • US attempted to broker agreement between Nationalists under Chiang Kai-shek and Mao Zedong • 1947 - Civil war erupted in China

11. Election of 1948 • Truman’s popularity low • Republican nominee Governor Dewey • Southern Democrats left party over civil rights plank • Formed “Dixiecrat” party and nominated Strom Thurmond • Liberals organized a new progressive party and nominated former VP Wallace

12. Election of 1948 • Truman launched an aggressive whistle-stop campaign • Truman warned Republicans would do away with New Deal gains • Success of Berlin Airlift also strengthened Truman • Progressive party fell into hands of communist sympathizers driving away many liberals

13. Election of 1948 • Dewey’s campaign was smug and lackluster – expected to win without effort • Truman won the election and attempted to enact a Fair Deal – little of which was passed

15. Containing Communism • North Atlantic Treaty Organization (NATO) formed to counter Soviet threat to Europe • 1949 – USSR detonated an atomic weapon – caused US to expand its arsenal • 1950 – US begins development of hydrogen bomb (USSR already developing)

16. Containing Communism • By 1949 mainland China in communist hands • Chiang Kai-shek and Nationalists fled to Formosa (Taiwan) • Containment relied on money but not men on the ground – Truman began to reduce number of troops

17. Containing Communism • NSC – 68 • Submitted by Secretary of State Dean Acheson • Called for enormous increase in military spending (350% increase) • Create an arms race that the USSR could not hope to win due to inferior system • Truman not warm to idea but changed mind due to war in Korea

18. The Korean War • Japanese disarmed in Korea by USSR in the north and the US in the south • Both left the peninsula but USSR left a well-armed army whereas the one left by the US was small and ill-trained • US policy makers determined that military involvement in Asia was impractical – US defense perimeter to be based on Japan and Philippines

19. The Korean War • Korea excluded from perimeter in speech by Sec State Acheson in 1950 • North Korea responded with an attack on South Korea • Truman resolved to stop the S.O.B.’s • US planes and ground troops were sent to help without a declaration of war • Truman accepted NSC-68

20. The Korean War • US secured UN Security Council approval for defense of South Korea (USSR?) • General MacArthur placed in command • 16 nations supplied troops though US forces comprised about 90% of the force • Pusan Perimeter • Inchon Invasion

21. The Korean War • North Korea retreated to well above 38th parallel • Some advised Truman to stop at parallel – not to entice USSR or China to widen war • MacArthur sought full occupation of North Korea • Truman authorized the stop line at the Yalu River

22. The Korean War • Chinese “volunteers” began to turn up in hauls of POWs • MacArthur assured Truman China would not dare intervene • China entered war with over 250,000 troops • UN forces pushed back to 38th parallel • MacArthur urged the use of atomic weapons and naval blockade of China

23. The Korean War • Truman – afraid of starting WWIII- fired MacArthur • Korean War became unpopular due to mounting casualties and costs • Truce negotiations began in 1951 but war would drag on until 1953

25. Communists at Home • Korean War illustrated growing US decline in ability to influence world affairs • Fear of communist espionage in US increased • Truman set up Loyalty Review Board to check on government employees – about 2,700 workers fired over 10 year period

26. Communists at Home • Whittaker Chambers (Time) versus Alger Hiss (former state department official) • Case fed fears of communist underground • Klaus Fuchs – British scientist • Harry Gold – associate of Fuchs • Julius and Ethel Rosenberg

27. McCarthyism • 1950 – Joseph McCarthy (Wisconsin) claimed he had list of 205 communists in the State Department • No evidence to back up his claims • Backed by public opinion (Red Scare) McCarthy attacked several public figures including George Marshall • The “Big Lie” – enormity of charges and status of targets must mean there was truth

28. 1952 Election • Truman low in polls again due to Korean War, firing of MacArthur, and charges made by McCarthy • Republicans nominated Eisenhower • Eisenhower promised to go to Korea • “I Like Ike” • Democrats nominated Governor Adlai Stevenson

29. 1952 Election • Stevenson tagged as an “egghead” • Eisenhower attempted to emulate Washington and remain above partisan politics • Fiscal conservative

30. Eisenhower-Dulles Foreign Policy • Dulles argued against containment using military forces – believed nuclear arsenal sufficient • Beliefs tested on Korea – nukes sent to Asia along with vague warnings of “tougher measures” • Weeks later armistice in Korea signed • China unaware?

31. Eisenhower-Dulles Foreign Policy • 1954 - Communist China shelled two islands manned by Nationalist Chinese troops • Chiang Kai-shek appealed to US for help • 1955 – Eisenhower announced that US willing to use nuclear weapons to defend the islands • China backed down

32. McCarthy Self-Destructs • McCarthy continued attacks on the State Department • Overreached when he began attacks on the army • Televised Army-McCarthy hearings brought about his downfall • His combativeness and disregard for human values became apparent and he lost public favor • McCarthy was censured by the Senate and became inconsequential – died of cirrhosis of liver 1957

33. Post-Korean Asian Policy • Trouble erupted in French Indochina in 1953 • Communists supplied Viet Minh with arms • Truman countered with supplies to French – Eisenhower continued policy • 1954 – Battle of Dien Bien Phu • UN divided Vietnam at 17th parallel – two Vietnams created

34. Post-Korean Asian Policy • Democratic Republic of Vietnam – North - (communist) under Ho Chi Minh • Republic of Vietnam – South – under Bao Dai • Elections scheduled for 1956 • Bao Dai overthrown by Ngo Dinh Diem • US supported Diem • Establishment of Southeast Asia Treaty Organization (SEATO)

35. Israel and the Middle East • Jewish immigration into Palestine • Zionism • 1947 – UN partition of Palestine • 1948 – Establishment of Israel • Eisenhower – policy of moderation • 1952 – Egyptian revolution deposes King Farouk – Gamal Abdel Nasser takes control

37. Israel and the Middle East • US prepared to give Egypt $ for Aswan Dam but no arms • Egypt leaned towards USSR • Eisenhower revoked offer – Nasser nationalized Suez Canal • British and French forces attacked Egypt (Israel also attacked)

38. Israel and the Middle East • US calls for ceasefire in UN – vetoed by Britain and France • USSR (Khrushchev) threatened to send troops and fire missiles against Britain and France • British, French, and Israeli troops withdrew • Eisenhower issued the Eisenhower Doctrine – US prepared to use force against any communist aggression (restatement of containment policy)

39. Eisenhower and Khrushchev • Eisenhower won reelection in 1956 • Cold War continued • Khrushchev came to power in USSR upon death of Stalin • De-Stalinized Russia • Crude, temper tantrums, bellicose • US advantages evaporated with launch of Sputnik

40. Eisenhower and Khrushchev • US bomber advantage obsolete – Russian ICBMs new threat • Khrushchev boasted USSR could destroy US • The “Missile Gap” • Threat of nuclear war caused more accommodation between US and USSR • Mutual visits – Nixon’s kitchen debate / Disneyland

41. Eisenhower and Khrushchev • A planned conference between US and USSR halted due to U-2 incident • Eisenhower accepted responsibility • Khrushchev turning out nuclear missiles like “sausages from an automatic machine”

42. Latin America Aroused • 1947 – Organization of American States (OAS) established (US had no veto power) • Latin American radicals protested US support for dictators and lack of financial aid for poor • 1954 – US supported invasion of Guatemala by Honduras due to Soviet influence

43. Latin America Aroused • 1958 – Nixon’s motorcade attacked in Goodwill Tour of Latin America – forced to abandon trip • 1959 – Cuban Revolution • Castro nationalized American businesses and negotiated trade agreement with USSR • Eisenhower broke off diplomatic relations with Cuba

44. Civil Rights • Ideological competition with communism caused many to question current attitudes of racial equality • American racism hurt America’s cause in Asia and Africa • Coincided with crackdown on communists in America • 1950 Internal Security Act (McCarran Act)

45. Civil Rights • Oppenheimer lost security clearance • Military desegregated • Desegregation of colleges began in 1938 under Supreme Court rulings • 1954 – Brown v. Board of Education of Topeka – Thurgood Marshall argued against “separate but equal” • The court ruled all schools must desegregate “with all deliberate speed”

46. Civil Rights • Few schools complied – where they did riots erupted • Eisenhower did little to enforce the ruling • 1957 – Little Rock – Governor Faubus called out National Guard to prevent blacks from attending white school • Eisenhower called in army troops and nationalized the National Guard to allow black students to attend

47. Civil Rights • Southern resistance only strengthened black and sympathetic white resolve • Civil Rights Act of 1957 – allowed attorney general to obtain injunctions to stop officials from interfering with Black voters • Law also established Civil Rights Commission • Enforcement of the law was spotty

48. Election of 1960 • Kennedy versus Nixon • Issue of Catholicism • Both were cold warriors – JFK even admitted he liked McCarthy • Television debates – power of the media • Kennedy’s victory in popular vote was razor thin