The Cold War Begins

1. The Cold War Begins

2. Americans celebrate WWII but still very fearful 1. Fearful of another depression 2. Relations with major ally Soviet Union quickly deteriorate Postwar Economic Anxieties

3. Many worry that returning GI’s would now be stepping into the unemployment line At first these predictions seemed to be coming true GNP dropped in ‘46 and ’47 Prices rose by 33% in ’46-47. Strikes swept key industries. In retrospect, these were simply rebound effects Postwar Economic Anxieties

4. Growing strength of labor movement bothers conservatives 1947- Reps control congress for first time in 14 years Strike back against gains made by labor unions under the new deal Taft-Hartley Act ( passed over Truman’s veto)- which outlawed “closed” shops (closed to non-union members), made unions liable for damages that resulted from jurisdictional disputes among themselves, and required that union leaders take non-communist oaths. Opposite of the Wagner Act of the New Deal, this new act was a strike against labor unions. Taft-Hartley Act

6. CIO- Operation Dixie- hoped to Unionize southern textile and steel workers in 1948- Failure Why- 1. Fearful of racial mixing 2. Service Sector- mainly women- only worked part time, thus much harder to organize in comparison to the North Labor Unions in the South…yea no

7. Democratic administration sold war factories and other government installations to private businesses cheaply Employment Act of 1946- which made it government policy to “promote maximum employment, production, and purchasing power,” and created the Council of Economic Advisors to provide the president with data to make that policy a reality. Stopping downturn before it starts

8. Servicemen’s Readjustment Act of 1944 Passed to prevent problems of returning GI’s 1. Soldiers get college education at very cheap prices (Cost = 14.5 billion) 2. Veterans Administration(VA)- 16 billion in loans for Vets to buy houses, farms, and small businesses Huge positive impact on post-war US GI Bill

9. The Economic Boom between 1950 and 1970 was the longest and biggest in the nations history. It transformed the country. National income doubled in the 1950s and doubled again in the 1960s. Americans 6% of the world population but 40% of its wealth. Size of the middle class rose to 60%-double that prior to the depression. Americans became consume-aholics. Owning a car became standard, and two was better. Is like the roaring 20s, but tinged with optimism. Huge for women, service sector out grows industrial and manufacturing sectors While women’s role expands, popular culture still glorifies traditional woman roles Economic Boom 1950-1970

10. 1. WW II- American factories produced more than ever imagined 2. Huge military projects (Critics complain of “permanent war economy) Projects for Korean War US pumps money in aerospace, plastics and electronics Science 3.Cheap NRG – US and Europe controls petroleum from Middle East, kept prices low AC in homes, Highway construction, expansion of electrical grid 4. Industrial output grows at about 3% a year (GI Bill) Productivity is the key to prosperity 5. Changes in basic econ structure- agribusiness takes off, the family farm is dead (Mechanization, new fertilizers, govt. subsidies, price supports) Roots of Postwar Prosperity

11. For 30 years after the war 30 Mil. people changed residences every year. Results 1. Families become more separated 2. Child rearing books become popular- Benjamin Spock’s The Common Sense Book of Baby and Child Care 3.Mobility can lead to isolation and loneliness Shifting populations

12. Growth of the Sunbelt—South, Southwest and California grow at a rate nearly double that of the old northwest (Frost belt). Why- Jobs, climate, cheap taxes Federal spending huge in the South, 444 billion dollars more sent to south than Midwest and North east “The North shall rise again” Smiling Sunbelt

13. White flight Government encouraged Federal Housing Administration (FHA) and VA 1.Federal loan guarantees made it more economically attractive to own a home in the suburbs than to rent in the city. 2.Tax deductions for mortgage interest, but not rent. Levittown Construction industry revolutionized with new tech NE and MW cities, are “black, brown, and broke” Affluent businesses move out of down town, to suburban shopping malls Govt encourages racial separation- FHA it is a “risk” making loans to blacks and other unharmonious racial or nationality groups Rush to the Suburbs

15. Baby Boom is the huge surge in births in the 15 years after WWII. Peaks in 1957 Baby boom has lasting consequences Created a secondary baby-boom. One of the prime targets of advertisers; thus impact on popular culture. Many of those in the rebellious generations in the 60s and 1970s were baby-boomers. Population issues of the 1990’s (social security) Post-war Baby Boom

16. “The Average Man’s President” No college education, small farmer, WW I vet Had a “Missouri Gang” Has to prove his power to strength to skeptical public Sometimes would stick with wrong decisions just to show skeptics his power and decisiveness Harry Truman

17. 1945- Big three meet to discuss postwar plans 1. Poland should have a representative government with free elections, as would Bulgaria and Romania. But, Stalin broke those promises. 2. Soviet Union had agreed to attack Japan three months after the fall of Germany, but by the time the Soviets entered the Pacific war, the U.S. was about to win anyway, and now, it seemed that the U.S.S.R. had entered for the sake of taking spoils. 3. The Soviet Union was also granted control of the Manchurian railroads and received special privileges to Dairen and Port Arthur. Critics- FDR sold Chaing Kai Shek down the river Supporters- Soviets could have conquered much more of China, Yalta Conference set limits on Stalin’s ambitions Yalta Conference- not drafting a peace settlement, sketching general intentions, testing each others reactions Yalta Conference

18. Communism vs Capitalism Where it started 1. US didn’t recognize Bolshevik govt until 1933 ( at that time 16 years old) 2. US and England delays in opening 2nd front against Nazis 3.US and England keep Stalin out of a project in developing atomic bomb 4. US ends lend lease with USSR in 1945 ( asked for 6 billion) while giving England 3.75 billion dollar loan in 1946 US and USSR

19. Different Postwar visions USSR- beaten down after world wars- wants friendly borders on western front, AKA eastern Europe should be a buffer zone US- USSR’s sphere of influence looks like empire building. US- “open world” decolonized, demilitarized, democratized, with a strong international organization to keep peace US and USSR

20. Similarities Both isolationist prior to WWII Both practice missionary diplomacy- spreading your ideas to the rest of the world, as if they are the best Results in the cold war- political tensions between the USSR and US Cold war overshadows the entire postwar international order Cold war- impacts everybody on the globe US and USSR

21. Bretton Woods, NH, 1944—International Monetary Fund-to encourage world trade by regulating the currency exchange rates. International Bank for Reconstruction and Development (World Bank) Shaping the Postwar World

22. FDR starts pushing for international organization before war’s end (different than WW) San Fran, 1945 United Nations Conference, 4/45 UN Charter signed by 50 nations. Security Council dominated by the Big Five (US, USSR, China, GB, France). Each had veto power over any resolution. Assembly made up of all countries. US Senate overwhelmingly ratifies US participation United Nations

23. League no veto power During establishment, L of N presumes great power conflict, UN presumes great power cooperation UN has general assembly, for smaller countries to be represented Senate happily ratified the UN UN vs LofN

24. Pros The U.N. kept peace in Kashmir and other trouble spots, created the new Jewish state of Israel, formed such groups as UNESCO (U.N. Educational, Scientific, and Cultural Organization), FAO (Food and Agricultural Organization), and WHO (World Health Organization),bringing benefits to people all over the globe. Cons However, when U.S. delegate Bernard Baruch called in 1946 for a U.N. agency free from the great power veto that could investigate all nuclear facilities and weapons, the U.S.S.R. rejected the proposal,since it didn’t want to give up its veto power and was opposed to“capitalist spies” snooping around in the Soviet Union. The small window of regulating nuclear weapons was lost. UN Pros and Cons

25. Nuremberg War Crimes Trial- severely punished 22 top culprits of the Holocaust. Punishing the Nazi’s is about the only thing the US and USSR can agree on The Problem of Germany

26. At first, US wants to de industrialize Germany Soviets wants huge war reparations from Germany A healthy German is the key to Europe’s recovery, US realizes this, Soviets resist Germany and Austria is divided into 4 zones The Problem of Germany

27. Allies want reunification of Germany, don’t want USSR to get reparations USSR tightens grip on East Germany Country is split West Germany (allies) democratic and capitalism East Germany (Soviets) communism The Problem of Germany

28. Eastern Euro countries like Poland and Hungary became “satellite” states, independent, but bound to USSR Iron Curtain The Problem of Germany

29. 1948 Berlin (also split)- USSR cuts off rail and highway access to West Berlin Moscow vs. Washington US responds by airdropping tons of supplies to W. Berlin Berlin finally lifts block in 1949 Both E and W Germany governments established and recognized 1949 Berlin Airlift

31. Iran Crisis of 1946- Soviets don’t want to back out of Iran (Oil), used troops to aid rebel groups, US protests, Stalin backs out The Cold War Continues

32. Containment Doctrine- George F Kennan- Allow communism where it exists, but do not allow it to spread England, running out of money to support Greece, if Greece falls to Soviets, then Turkey, then the Mediterranean (Domino Theory) Truman Doctrine- 400 million dollars in aid to Turkey and Greece- “it must be the policy of the US to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures Containment and Truman Doctrine

34. Critics of TD 1. US now has to give money to any tiny despot who claims to be fighting against commies 2.Polarized the world into Pro US or Pro Soviets 3. Made Soviets out to be a primary threat militarily speaking Containment and Truman Doctrine

35. Western Euro still starving, US worried they could fall to Communism from within Marshall Plan- Sect. Of State George C. Marshall 1. US would provide substantial financial assistance. 2.Europeans enthusiastically agree. 3. Offered to USSR as well, but they reject it At first congress didn’t accept plan- too much money, specially since we already gave 2 billion through UNRRA Marshall Plan

36. Soviet Sponsored coup in Czechoslovakia opens congresses eyes Approved plan in 1948 12.5 billion dollars, over 4 years, for 16 countries Huge success, most of Western Euro has economic booms Italy and France don’t fall to domestic communist forces Marshall Plan

37. Middle East = rich with oil- they adamantly protest against creation of Israel Most of Europe, state department, and defense department against recognizing Israel- but HT recognized it May 14 1948 Why- Holocaust, stop Soviet influence in Israel, retain Jewish American vote Leads to huge problems in US foreign policies Marshall Plan

38. Cold war- US starts to re arm itself at massive rates 1947- National Security Act- creates Dept. of Defense, housed at Pentagon, headed by new Cabinet member Sect. Of Defense NSA- also creates the National Security Council (NSC) and the CIA 1948- Draft is reestablished. First peace-time draft. American Begins to Re-Arm

39. 1948- “Voice of America” radio broadcasts sent to those behind iron curtain 1948- Treaty of Brussels – US asked to join US hesitate to join But decides to join- 1. Help contain Soviets 2.Help framework for bringing in Germany into Euro 3.Reassure Euro that US (normally isolationists) isn’t going to leave Europe behind while Soviet Bear is creeping America Begins to Re-Arm

40. North Atlantic Treaty Organization 1948. Britain, France, Belgium, the Netherlands, Luxembourg and US. West Germany and others join later. End to Isolation Obligates each country to defend others Epochal unification of Europe NATO

41. General Douglas MacArthur leads way in democratization of Japan War criminals are tried in Tokyo MacArthur dictated constitution formed in 1946 1. Renounced militarism 2. =lity for women 3. Introduced western style democracy Reconstruction in Japan

42. China was a mess. Weak and divided Nationalist led by Chang Ki Cheke (Jiang Jieshi). Communists are led by Mao Tse-tung. Chang is corrupt and repressive and ultimately Mao and communists take control. Nationalists flee to Formosa (Taiwan). US recognition of “China”. China Goes Red

43. The “loss” of China was a huge blow to American Psyche. “Who lost China?” Many Republicans blame Truman. Allege that the State Department is riddled with secret Communists. Fuels the growing Red Scare. America now sees two largest countries aligned against the US. China Goes Red

44. 1949- soviets explode A bomb- US is shocked, monopoly is gone Truman now wants H-bomb developed- much stronger than A- bombs Development led by Einstein and J Robert Oppenheimer (Manhattan Project) 1952- US 1st H bomb test 1953- Soviets do the same Nuclear Arms Race

45. 1947 Loyalty program Loyalty Review Board, which investigated more than 3 million federal employees. States adopt their own loyalty pledges (especially teachers) In 1949, 11 communists were brought to a New York jury for violating the Smith Act of 1940, which had been the first peacetime anti-sedition law since 1798. They were convicted, sent to prison, and their conviction was upheld by the 1951 case Dennis v. United States. 2nd Red Scare

46. HUAC- House Un-American Activities Committee- investigate subversion Richard Nixon- catches Alger Hiss Joseph McCarthy- McCarthyism 2nd Red Scare

47. HT and American people worried its turning into witch-hunt- HT vetoes McCarran Internal Security Bill They are some soviet spies Julius and Ethel Rosenberg- only people in US history to be executed in peacetime for espionage Sensationalized trial and orphan children begin to slow down red witch hunt 2nd Red Scare

48. Reps take control of congress in 1946- presidential candidate Thomas E. Dewey Demo “dump Truman campaign” foiled when Ike Eisenhower refused to run Southern Demos hate HT- (civil rights, deseg military) South Demos- form Dixiecrat party- Strom Thurmond as candidate Former VP Henry Wallace – runs for progressive party- wants better relations with Russia Reps think win is just around the corner Truman- “Give them hell speeches”- lashed against Taft Hartley slave labor law and do nothing republican congress Truman surprise victory, and Demos re gain control of congress Farmers, workers and blacks vote for Truman, also admire his guts Democratic Division in 48