The Cold War Begins

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The Cold War Begins
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Postwar Economic Anxieties

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

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Postwar Economic Anxieties

• Many worry that returning GIs 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

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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 Trumans 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.

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Labor Unions in the Southyea 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

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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.

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GI Bill

• Servicemens Readjustment Act of 1944
• Passed to prevent problems of returning GIs
• 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

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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 womens role expands, popular culture still
  glorifies traditional woman roles

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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)

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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
  Spocks The Common Sense Book of Baby and Child
  Care
• 3.Mobility can lead to isolation and loneliness

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Smiling Sunbelt

• Growth of the SunbeltSouth, 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

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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

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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 1990s (social security)

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Harry Truman

• The Average Mans 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

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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
  Stalins ambitions
• Yalta Conference- not drafting a peace
  settlement, sketching general intentions, testing
  each others reactions

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US and USSR

• Communism vs Capitalism
• Where it started
• 1. US didnt 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

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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- USSRs sphere of influence looks like empire
  building.
• US- open world decolonized, demilitarized,
  democratized, with a strong international
  organization to keep peace

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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

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Shaping the Postwar World

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

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United Nations

• FDR starts pushing for international organization
  before wars 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

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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

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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 didnt want to give up its
  veto power and was opposed tocapitalist spies
  snooping around in the Soviet Union. The small
  window of regulating nuclear weapons was lost.

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The Problem of Germany

• Nuremberg War Crimes Trial- severely punished 22
  top culprits of the Holocaust.
• Punishing the Nazis is about the only thing the
  US and USSR can agree on

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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 Europes recovery,
  US realizes this, Soviets resist
• Germany and Austria is divided into 4 zones

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The Problem of Germany

• Allies want reunification of Germany, dont want
  USSR to get reparations
• USSR tightens grip on East Germany
• Country is split
• West Germany (allies) democratic and capitalism
• East Germany (Soviets) communism

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The Problem of Germany

• Eastern Euro countries like Poland and Hungary
  became satellite states, independent, but bound
  to USSR
• Iron Curtain

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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

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The Cold War Continues

• Iran Crisis of 1946- Soviets dont want to back
  out of Iran (Oil), used troops to aid rebel
  groups, US protests, Stalin backs out

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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

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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

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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 didnt accept plan- too much
  money, specially since we already gave 2 billion
  through UNRRA

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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 dont fall to domestic communist
  forces

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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

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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.

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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)
  isnt going to leave Europe behind while Soviet
  Bear is creeping

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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

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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

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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.

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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.

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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

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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.

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2nd Red Scare

• HUAC- House Un-American Activities Committee-
  investigate subversion
• Richard Nixon- catches Alger Hiss
• Joseph McCarthy- McCarthyism

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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

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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

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Harry Truman and Point 4

• Fair deal
• Improved housing, full employment, better farm
  price supports, new TVAs, 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

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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.

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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

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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

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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