The Cold War Begins

Postwar Economic Anxieties

• Americans celebrate WWII but still very fearful

• 1. Fearful of another depression

• 2. Relations with major ally Soviet Union quickly deteriorate

Postwar Economic Anxieties

• 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

Taft-Hartley Act • 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.

Labor Unions in the South…yea no

• 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

Stopping downturn before it starts • 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.

GI Bill• 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

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 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

Roots of Postwar Prosperity • 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)

Shifting populations • 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

Smiling Sunbelt • 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”

Rush to the Suburbs • 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

Post-war Baby Boom • 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)

Harry Truman • “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

Yalta Conference • 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

US and USSR• 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• 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 • 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

Shaping the Postwar World

• 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)

United Nations • 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

UN vs LofN

• 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 Pros and Cons • 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.

The Problem of Germany

• 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

• 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

• 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 • Eastern Euro countries

like Poland and Hungary became “satellite” states, independent, but bound to USSR

• Iron Curtain

Berlin Airlift • 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

The Cold War Continues

• 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

Containment and Truman Doctrine • 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

• 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

Marshall Plan • 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 • 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• 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

American Begins to Re-Arm • 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.

America Begins to Re-Arm • 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

NATO• 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

Reconstruction in Japan

• 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

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”.

China Goes Red • 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.

Nuclear Arms Race • 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

2nd Red Scare • 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 • HUAC- House Un-American Activities Committee-

investigate subversion• Richard Nixon- catches Alger Hiss• Joseph McCarthy- McCarthyism

2nd Red Scare • 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

Democratic Division in 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

Harry Truman and Point 4• Fair deal • Improved housing, full

employment, better farm price supports, new TVA’s, and extension of social security

• Southern Demos, and Reps gut the bill

• Successes– 1.Raised minimum wage– 2.Public Housing Act of

1949– 3.Social Security Act 1950

Korea • When Russian and American forces withdrew

from Korea, they had leftthe place full of weapons and with rival regimes (communist North anddemocratic South).

• Then, on June 25, 1950, North Korean forces suddenly invaded South Korean, taking the South Koreans by surprise and pushing them dangerously south toward Pusan.

• Truman sprang to action, remembering that the League of Nations had failed from inactivity, and ordered U.S. military spending to be quadrupled, as desired by the National Security Council Memorandum Number 68, or NSC-68.

Korea • NSC-68 huge

– Militarization of US foreign policy

– Shows US cockiness

• Truman also used a Soviet absence from the U.N. to label North Korea as an aggressor and send U.N. troops to fight against the aggressors.

• HT- without approval of congress, sends units to support South Korea

• MacArthur name UN commander- even though he takes orders for DC, not UN sec. council

Seesawing in Korea • Mac surprise attack at

Inchon- pushes North Koreans back

• China starts to send warnings, Mac tells Truman not to worry

• China sends thousands of volunteers, now pushed back S. Korea

• Stalemate ensues • Mac starts making big plans

– 1. Blockade China– 2.Bombard China– 3.Nuke em

Seesawing in Korea

• Mac starts criticizing Truman and his limited war policy

• HT fires Mac for insubordination

• Mac returns to US a hero, public calls HT a Juda, and appeaser of communism