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Demobilization & Reconversion
Americans want all their military troops homeBy 1948, military goes from 12 million to 1.5
millionReturning veterans face problems
Housing shortageHigh divorce rateFear of unemployment
Defense spending drops
The GI Bill of Rights
Trying to ease veterans back into the work forcePriority for jobs52 weeks of unemployment benefitsLow-interest loans for businesses or homesPaid for 4 years of college or job training
Huge increase in higher educationMore people can become middle classWomen forced to leave college, work
The Economic Boom Begins
Boom begins in late 1946$6 billion tax cut helps new businesses startAmericans spend what they saved during the
warLots of new consumer products
U.S. is the top economy of the worldEurope and Asia are rebuildingIMF, World Bank dominated by U.S.Exports increase
Truman’s Domestic Program
Truman backs away from the New DealPeople are happy with the boom – don’t want it
Employment Act of 1946Commits federal government to making policies to
ensure economic growthCongress weakens it
Truman makes mistakesEnds price controls – inflation risesTries to order striking workers back on the job
Alienates unionsVery unpopular by 1946
The Eightieth Congress, 1947-1948
Americans becoming more conservativeWant to enjoy themselves after depression, war
Republicans in control of Congress by 1946 – want to reverse the New DealTaft-Hartley Act – to weaken unions
Bars closed shops, requires union officials to sign loyalty oaths, lets the president call a ‘cooling-off period’ to delay strikes
Helps keep unions out of the South, WestTruman vetoes, Congress overrides
Truman wants to bring back the new deal
The Politics of Civil Rights and the Election of 1948African Americans now expect more racial
equality after WWIITruman responds: President’s Committee on
Civil RightsHighlights inequalities in the SouthAsks the government to outlaw lynching and the poll
tax, desegregate the military, end segregationElection of 1948:
Southern Democrats walk out – DixiecratsLiberal Democrats leave to form the Progressive PartyRepublicans nominate Thomas Dewey – looks like he
will win
The Fair Deal
Truman proposes the Fair DealCivil rightsNational health careFederal aid to education
Congress rejects these measuresDoes raise the min. wage, build low-income
housing, increase social security benefitsTruman and Congress get distracted by
the Cold War
Polarization and Cold War
Soviet Union’s goals:Demilitarized GermanyBuffer zone of
Communist nations on Russia’s western border
Actions: Installs puppet
governments in Eastern Europe
Bars free elections in Poland
U.S. goals:Won’t give in to a
dictatorWants self-
determination for these countries
Actions:Demands free elections
in PolandForeign policy will focus
on stopping Communism
The Iron Curtain Descends
1946: Stalin says there will be “no lasting peace” with capitalism
George Kennan writes the long telegramSays U.S. must contain the Soviet Union
Stop any Communist expansion
Both sides build up atomic weaponsAtomic Energy Commission
Cold War begins
Containing Communism
Greece and Turkey are fighting Communist insurgents British can’t help them anymore Truman Doctrine – pledges to support free peoples defending
their freedom against Communism----NEW FOREIGN POLICY: CONTAINMENT
National Security Act of 1947 Creates Department of Defense, National Security Council,
Central Intelligence AgencyMarshall Plan – U.S. would give money to Western
Europe, including Soviet Union, to help them rebuild so they wouldn’t turn to Communism - $17 billion – money had to be spent in the U.S.
Confrontation In Germany
Germany was divided into 4 zonesBerlin was in the Soviet zone
It was divided in to 4 zones too
3 western zones combineStalin threatened – blockades Berlin
Berlin Airlift – U.S. flies in and drops supplies to BerlinStalin has to give up in May 1949
NATO – formed for collective security against the Soviet Union
The Cold War in Asia
Communist forces take over China in 1949Mao ZedongEven though the U.S. was helping support he
Chinese nationalistsRight after, Soviets detonate their first atomic
bombSo we start building the Hydrogen bomb
NSC-68- secret reportWe must increase America’s nuclear arsenal,
maitnain a large army, quadruple the defense budget
The Korean War, 1950-1953
Korea divided between U.S. and S.U. after World War II Communist North, Democratic South
North Korea attacks South Korea I June 1950 With help of Soviets, Chinese
Truman gets UN to help, we send troops into the Korean War Back and forth fighting Ends up in a stalemate in 1953
Consequences: We implement NSC-68 – increase in defense spending, nuclear
weapons Sets precedent – we’ll fight communism around the world
The Eightieth Congress, 1947-1948
Americans becoming more conservativeWant to enjoy themselves after depression, war
Republicans in control of Congress by 1946 – want to reverse the New DealTaft-Hartley Act – to weaken unions
Bars closed shops, requires union officials to sign loyalty oaths, lets the president call a ‘cooling-off period’ to delay strikes
Helps keep unions out of the South, WestTruman vetoes, Congress overrides
Truman wants to bring back the new deal
The Politics of Civil Rights and the Election of 1948African Americans now expect more racial
equality after WWIITruman responds: President’s Committee on
Civil RightsHighlights inequalities in the SouthAsks the government to outlaw lynching and the poll
tax, desegregate the military, end segregationElection of 1948:
Southern Democrats walk out – DixiecratsLiberal Democrats leave to form the Progressive PartyRepublicans nominate Thomas Dewey – looks like he
will win
The Fair Deal
Truman proposes the Fair DealCivil rightsNational health careFederal aid to education
Congress rejects these measuresDoes raise the min. wage, build low-income
housing, increase social security benefitsTruman and Congress get distracted by
the Cold War
Loyalty and Security
Second Red Scare: Americans worried about Communist ‘subversives’ in this country
Executive Order 9835Federal Employee Loyalty Program to root out
subversives in the governmentCommunists barred from federal employmentSuspected sympathizers are fired
They don’t find anything, but people are scared
The Anticommunist Crusade
House Un-American Activities CommitteeCongress holds hearings to expose communist
influence in American lifePeople accused can’t win – either plead guilty
and name names, or don’t and still be outcastsHollywood Ten – refuse to testify, sent to prison
Ironic: Communist party actually losing popularity in the U.S.
Alger Hiss and the Rosenbergs
Alger Hiss – named as a secret communist spy by Whittaker Chambers, a former Soviet agentHiss had served in govt. under FDR, was a liberalHiss convicted of perjury, given 5 years in prison
Julius and Ethel Rosenberg – accused of being Communist spies, sending atomic secrets to the Soviet UnionSentenced to die by electric chair
McCarthyism
Republicans exploit fear, accuse Democrats of being full of Communists
Joseph McCarthy – Senator from WisconsinShady characterWheeling speech – says he has the names of 205
Secretary of State employees who are CommunistsHas nothing!
Things get out of controlEventually he accuses the military of having Communists,
people realize he has no proof
The Election of 1952
Democrats are sinking fastPeople afraid they’re full of CommunistsTruman unpopular with business and labor –
Korean War price and wage freezesNominate Adlai Stevenson
An “egghead”
Republicans nominate Dwight D. EisenhowerWWII hero, super popular
Nixon is his VP – Checkers speech