The Cold War Begins

Chapter 36

Post War Economic Anxiety

After war many Americans worried that economy would slip back into depression.

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

Taft-Hartley

Republicans controlled Congress for first time in 14 years.

Passed the Taft-Hartley Act over Truman’s veto.

Labor hated this law. Why? Unions attempts to grow into new areas

and industries were frustrated. South was resistant to unions. Why? Workers in rapidly growing service sector

were hard to organize. Why?

Early Economic Moves

Sold War factories and other government installations at very low prices. How does this benefit business?

Employment Act (1946) creates Council of Economic advisors. Purpose?

GI Bill: Servicemen’s Readjustment Act of 1944. Provisions? Helps to expand the middle

class and absorb returning GIs

The Long Economic Boom, 1950-1970

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 population but 40% of the 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.

New World for Women

Women reaped huge benefits from the post-war boom.

New employment. Source of income and

independence to women. Effect of growth of service sector Culture glorified women as home-

makers and mothers. Women react against gap

between stereotype and reality with women’s movement of the 1960s.

Causes of economic expansion

The war itself Continued military spending Cheap Energy Increase in productivity

Education New Tech

Shift in the nation’s basic economic structure

The Smiling Sunbelt For 30 years after the war

30 Mil. people changed residences every year. How does this change

society? Growth of the Sunbelt—

South, Southwest and California grow at a rate nearly double that of the old northwest.

Grow of Sunbelt fueled by federal spending.

The Rush To The Suburbs Starting in the 1950s white middle-

class fled the cities to the suburbs. Reasons:

Federal loan guarantees made it more economically attractive to own a home in the suburbs than to rent in the city.

Tax deductions for mortgage interest, but not rent.

New highways and car-ownership made it easier.

Desire for the peace and prosperity of the new suburbs.

By 1960 one-in-four Americans lived in the suburbs, by 1990 half the population lives in suburbs.

Consequences of Growth of Suburbia

Construction industry booms—Levitt brothers/Levitt Town

Changes the pattern of life

Changes the nature of commerce.

White Flight/impoverishment of inner-cities

The Postwar Baby Boom Baby Boom is the huge surge in

births in the 15 years after WWII. Why it happened. 50 Million new babies over 15 years. 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.

Truman Shock of having a new

president. Truman much different from

FDR. Compromise VP choice, only

a middling Senator. FDR had left him largely out

of the loop Truman bio and personality

Yalta: Bargain Or Betrayal

February, 1945, Stalin, Churchill and Roosevelt meet in Yalta.

Issues: How to finish the war What to do with

Germany and Japan How to handle

rebuilding of nations ravaged by the war.

Yalta Agreements

What is agreed regarding Eastern Europe and Poland?

Agree to a multi-power summit in San Francisco to work on a successor to the League of Nations (What becomes the United Nations)

Far East Agreements

Problems—Atomic Bomb not yet perfected and looks like will be a very bloody invasion of Japan.

US wants Soviet help to pin down Japanese troops in Manchuria and Korea.

Stalin unwilling What does Stalin agree to do? What does he get in return How does this affect A-bomb decision?

Yalta Assessed

Yalta has been criticized: Sold out Poland and Eastern Europe Gave the Soviets too much in China. Russian help not needed in Japan Soviets would have entered the war anyway FDR was feeble and therefore was hoodwinked by Stalin.

Response: Yalta was not a treaty—it was a statement of intents and

common purposes. USSR already had effective control of Eastern Europe and we

couldn’t stop them from entering. Yalta was an attempt to get all three allied powers on the same

page as the war reached its conclusion.

Reasons for Clash with Soviets

Two preeminent military powers in the world. Each had half of Europe.

Each distrusted the other’s system Soviets were skeptical of US and GB Different visions of the post-war world and

each other Soviets and Americans had many

similarities that contributed to clash

Shaping The Postwar World

Bretton Woods, NH, 1944—International Monetary Fund.

International Bank for Reconstruction and Development (World Bank)

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

The Problem Of Germany

Nuremberg war-crimes trials.

Germany divided into four military occupation zones. Berlin itself been divided into

four parts.

Is a debate about what to do with Germany. Soviet proposal. Americans want German

economically strong. Why?

Germany Divided Soviets exert strong political

and economic control over their section of Germany.

Soviets resist reunification of Germany. What is Soviet motivation and

fear? American, British and French

zones united to form West Germany.

Soviet zone becomes East Germany

Berlin Blockade

Soviets blockade Berlin in 1948 ending all rail and highway access to West Berlin. Why? First show-down between USSR

and US. US airlift. Lasts for nearly a year. Airlift important symbol. Soviets forced to lift the blockade in

1949

1949 the two Governments of Germany are formally established.

Crystallizing The Cold War

Iran From 1945-47 Communist governments

installed throughout Eastern Europe US perception of these moves Churchill’s Iron Curtain Speech 1947—Containment Doctrine—George

Kennan

Cold War Europe

Truman Doctrine Truman formally embraces containment in 1947.

Crisis in Greece. Effect if it falls to communism. Truman goes before a joint session of Congress

and announces the Truman Doctrine. What is it?

Asks for $400 Mill. in aid to Greece. Containment/Truman doctrine drive foreign

policy for the next 40 years. Problem with doctrine as basis for foreign policy

Marshall Plan

US fears spread of communism in Western Europe. Why?

US responds with the Marshall Plan US would provide substantial

financial assistance. Europeans enthusiastically agree. Eastern Europe is offered aid, too,

but Soviets force them to reject. Why?

Ends up being 35.3 Billion over 11 years.

Huge Success.

Recognition of Israel

Truman goes against advice of State Department and recognizes the state of Israel in 1948. Arabs were adamantly against it and threatened to

push Jews into the sea. Arabs were important to US strategic interests

because of Oil and as bulwark against Soviets. Truman recognized Israel because:

Lots of Jewish voters in the US Sympathy for plight of Jews during the holocaust.

Recognition of Israel vastly complicated US foreign policy.

America Begins To Rearm Cold War leads America to arm itself in an

unprecedented fashion for peace time. US Defense establishment overhauled

National Security Act (1947) Pentagon Sec. of Defense has cabinet status. Joint Chiefs of Staff National Security Act established the National

Security Council and CIA. 1948 Draft is reestablished. First peace-time

draft.

National Defense Budget [1940-1964]

NATO

Soviet threat drives Western European countries together.

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,.

Reconstructing Japan Why is reconstructing

Japan easier? MacArthur. War crimes trials as in

Japan. Japanese cooperate with

US reconstruction to an astonishing degree. Why?

Japanese Constitution. Defense of Japan will be

handled by US. Economic consequence?

China Goes Red 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”.

“Who Lost China?”

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.

Myth of Communist unity.

Bigger Bombs Feb. 1949 Soviets explode an Atomic bomb three years sooner than

predicted. Americans shocked; monopoly gone America had counted on the bomb to keep Soviets in check for a

few more years. Truman orders the development of the H-bomb. Beginning of the

arms race. H-Bomb is exploded in 1952. Soviets explode their own H-bomb in 1953.

Ferreting Out Alleged Communists

Red Scare hit US. Whiff of truth gives validity to paranoia. Many believed there were home-grown Soviet

spies in the US government 1947 Truman launched loyalty program. 3000 federal employees dismissed based on

suspicion of disloyalty or communist sympathies. “communist sympathizer”

Communist Witch Hunts

1938 House Un-American Activities Committee formed to investigate “subversion.” Richard M. Nixon goes after

Alger Hiss.

1950 Joe McCarthy chairs committee and bursts on the national scene.

Black Lists

McCarren Internal Security Bill. What does it allow? Julius and Ethel Rosenberg

Witch-hunts are occurring in universities and in Hollywood. Black Lists

Truman Limps into 1948

Truman popularity low. Reasons Economic readjustment after war Twangy and blunt Democrats in control for 16 years

Republicans get majority in Congress in 1946

Most assume he can’t win. Democrats nominate him after Ike

refuses to be drafted. Nomination splits the party

Why are southern Democrats so opposed to him.

Democratic Divisions

Strom Thurmond. Dixiecrats

Former Vice President Henry Wallace runs as a liberal/progressive.

Republicans nominate Thomas Dewey, Gov. on New York

Assumed Truman will lose. Dewey runs “safe”

campaign.

Give ‘em Hell Harry

Truman’s whistle-stop tour throughout the country.

Rails against the “do-nothing Congress”.

Truman’s program/platform. Crowds get more and more

enthusiastic. Dewey still thinks he is

winning. Polling is still not very good.

Dewey Wins! (or not)

Truman wins handily and stuns about everyone. Democrats win House;

keep it for the next 44 years.

Why did Truman win?.

Truman makes the Fair Deal the corner-stone of his second term. Congress guts most of it.

The Korean Volcano Erupts

History of Korea after WWII Acheson sends mixed messages June 25, 1950, North Korean army rolls over the

S. Korean army. Are pushed back to a narrow area around Pusan.

Truman sees this as Soviet aggression; Commits US troops to a UN force to support S. Korea. Does this without consulting Congress or a

declaration of war. American forces are vast majority of UN forces and

MacArthur is appointed U.N. Commander.

NSC-68

Korean crisis provides excuse for massive increase in military spending. This proposal had been set out in National Security Council 68 (NSC-68).

NSC-68 was a major turning point in the Cold War

Committed America to massive military spending.

See-Saw in Korea

Inchon Landing Nervous Chinese MacArthur over-

confident Chinese pour in MacArthur defies

Truman; MacArthur fired Nasty stalemate; support

for war erodes.