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THE COLD WAR BEGINS. - The Cold War was the period of tension between the U.S. and U.S.S.R. from 1945-1991. - How many wars were fought between the 2 nations? - Why is this period in history referred to as the Cold War?. Communism 101.
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- The Cold War was the period of tension between the U.S. and U.S.S.R. from 1945-1991. - How many wars were fought between the 2 nations? - Why is this period in history referred to as the Cold War?
In the United States, some people are extremely wealthy, such as Bill Gates, C.E.O. OF Microsoft Corp. Bill Gates home in Medina, Washington. The mansion is 60,000 square feet, about 30 times larger than the average American house.
When this kind of inequality occurs, the poor become very upset, and it could lead to civil unrest
Communists offer a solution Instead of some people getting extremely wealthy owning businesses, and workers making little, let’s have the workers be the owners, and they can share the profits equally
Share the Wealth Bill Gates net worth = $67 billion If Bill Gates money was shared, 1.34 million people could each have $50,000.
A Flaw in the Plan? • Sounds great, right? • There will be plenty of money to go around • So, what’s the problem?
A Flaw in the Plan? • Why do people like Bill Gates start businesses? • To make money • Would people like Bill Gates invest thousands and millions of dollars to start businesses if they had to share the profits? • No!
A Flaw in the Plan? • So, in a communist system, there is no profit-motive (incentive) to start new businesses • There also is no incentive to work hard, since everything is shared – Why bust your tail and work hard when you will make the same as someone who is not? • So communist countries are typically poor, and lack new technology
Bye-Bye Freedom Since businesses are not being started, and people are not working hard, the government must take over and force people to start businesses and work hard.
Bye-Bye Freedom • People are unhappy by this and start to complain, so the government then takes away freedom of speech and other rights. • So in a communist system, there is not only no economic growth (high poverty rates and little new technology) but also a lack of freedom
Capitalism (Adam Smith) v. Communism (Karl Marx) • The communist system goes against the system used in the U.S. • What is that system called? • Good, it’s called Capitalism • As a result, the United States and the U.S.S.R. remained at odds for years
From Stettin in the Baltic to Trieste in the Adriatic an iron curtain has descended across the Continent. Behind that line lie all the capitals of the ancient states of Central and Eastern Europe. Warsaw, Berlin, Prague, Vienna, Budapest, Belgrade, Bucharest and Sofia; all these famous cities and the populations around them lie in what I must call the Soviet sphere, and all are subject, in one form or another, not only to Soviet influence but to a very high and in some cases increasing measure of control from Moscow.
Iron Curtain:Imaginary line separating Eastern Europe (communist) from Western Europe (free)
Truman Doctrine (1947) U.S. gave weapons and supplies to Turkey and Greece to prevent communist takeovers
Marshall Plan (1948) U.S. gave billions of $ to European countries to rebuild so they would not be taken over by communists
Following WW2, Germany divided • West Germany, freed by Americans and British, became democracy • East Germany was made communist by the Soviets Map shows the two Cold War alliances: U.S= NATO Soviet Union = Warsaw Pact
Berlin divided after WW2 between U.S., G.B., France, and the Soviet Union • U.S., G.B., and France combine zones into West Berlin (part of West Germany) • Soviet zone becomes East Berlin (part of East Germany)
Roadways would connect West Berlin to the rest of West Germany
Soviets had major problem in Berlin • Citizens saw up close how West Berlin (capitalism) was doing much better than East Berlin (communism)
To solve problem, Soviets cut off access to West Berlin from West Germany • Soviets didn’t want to look like bad guys, so they claimed roadways were being repaired • Soviets thought West Berlin would run out of supplies, and be forced to ask Soviets for help
United States Responds • U.S. had policy of containment, so couldn’t let communism spread to West Berlin • If you were President Truman, what would you do?
The Berlin Airlift Truman decided to have planes fly supplies to West Berlin
NATO (U.S. and its Allies) v. Warsaw Pact (U.S.S.R. and its satellites)
Communist North Korea, with approval from China and U.S.S.R. invaded non-Communist South Korea. The U.S., with help from United Nations, drove out North Koreans
Background to the Crisis On January 1, 1959, Fidel Castro takes over Cuba and makes it a communist country
In October of 1962, an American U-2 spy plane takes this photo of Cuba The photo shows missile launchers being built in Cuba by the Soviet Union
Cuban Missile Crisis (October, 1962) • In the end, the Soviets turn ships around • Represents “Height of Cold War” as U.S. and Soviets begin dialogue and in the 1970s enter into period of détente (easing of tensions)
Vietnam War • Vietnamese defeated French (1954) to gain independence • Country was temporarily split into north and south • When south backed out of agreement to unite country, the north (communist) invaded • U.S. sent troops to stop communist takeover but was unsuccessful
Non AlignmentSome countries able to avoid taking sides in Cold War (worked both sides to their advantage) Egypt India
Global Economy • During time Cold War was going on, countries of the world were become more closely connected • Economic interactions b/t nations grew, and many multinational corporations were formed
Multinational Corporations • Generally started in West and moved to other areas of world • Vastly affected regions they moved to (sometimes positively, but sometimes negatively)
Problems Created by Multinational Corporations • Workers exploited and pollution problems • Oil shortages (1973, 1979) showed how economy was becoming global b/c they affected so many nations around the world