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The Affluent Society The Affluent Society Chapter 28 Chapter 28

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Page 1: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The Affluent SocietyThe Affluent SocietyChapter 28Chapter 28

Page 2: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

A New Affluence in the USA

USA was the only nation in WWII that was NOT bombed during the war

US economy benefited greatly from wartime contracts

Emerged from the war economically strong and prosperous

Became the leader of the “free world,” major post-war decision-maker

Western states especially benefited

Page 3: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

A New Affluence in the USA

This prosperity validated Keynesianism

John Maynard Keynes was an economist

Page 4: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

A New Affluence in the USA

Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes

These outcomes require active policy responses by the public sector

Page 5: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

A New Affluence in the USA

Active government policy responses are particularly in the area of monetary policy actions by the central bank, and fiscal policy actions by the government

The goal is to stabilize output over the business cycle

Page 6: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

A New Affluence in the USA

The theories forming the basis of Keynesian economics were first presented in The General Theory of Employment, Interest and Money, published in 1936

The interpretations of Keynes are contentious

Several schools of thought claim his legacy

Page 7: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

A New Affluence in the USA

Keynesian economics advocates a mixed economy — predominantly private sector, but with a significant role of government and public sector

It served as the economic model during the later part of the Great Depression, World War II, and the post-war economic expansion (1945–1973)

Page 8: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

A New Affluence in the USA Labor unions shared in

the prosperity, often cooperated more with industry (nicknamed “postwar contract”)

AFL and CIO merged in 1955

Less-active unions (especially Teamsters) suffered from corruption

Page 9: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

A New Affluence in the USA

Prosperity led to many new inventions

Medical (antibiotics, new surgery techniques, polio vaccine)

Also to awareness of the dangers of pesticides, and the start of an environmentalist awareness

“Silent Spring” (1962) by Rachel Carson

Page 10: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Technology and Affluence in the USA Television soon a fact of every

American home

Page 11: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Technology in the USA

Computers were a new field, first developed in ’30s

The first actual “computer bug,” 1947 ➜

Page 12: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Technology in the USA

Weapons technologies boomed The US and USSR were locked in

“arms race” to outdo each other MAD (“Mutually Assured

Destruction”) All of this created unprecedented

new jobs for Americans

Page 13: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Technology in the USA

In October, 1957, the USSR successfully launched an artificial satellite into earth orbit

“Sputnik I” The “Space Race” began in

earnest

Page 14: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Technology in the USA

US had also been working on a “space program” for some time

Many of the US rocket scientists had formerly worked for Nazi Germany developing rockets during WWII

The USSR also had some former Nazis working in their space program as well

Page 15: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The “Space Race”

USA launched a satellite in January 1958

Formed NASA in 1958, out of “National Advisory Committee for Aeronautics”

Wernher von Braun

Page 16: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Education andThe “Space Race”

American schools, urged by President Eisenhower, renewed science education

In 1961, JFK committed the US to putting a man on the moon and returning him safely to Earth before the end of the decade

Page 17: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The “Space Race”

“. . . I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the Earth”

Page 18: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The “Space Race”

“No single space project in this period will be more impressive to mankind, or more important for the long-range exploration of space; and none will be so difficult or expensive to accomplish”

Page 19: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The “Space Race”

Alan Shepard First American

sent into space, 1961

Sub-orbital flight

Page 20: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The “Space Race”

John Glenn was the first American to orbit earth, 1962

USSR had already accomplished each feat

Page 21: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The “Space Race”

Mercury, Gemini, and finally Apollo programs of late 1960s set in place by JFK to put an American on the moon and return him safely to Earth by the end of the decade

Goal was achieved July 1969 USA “first” to land a manned

spacecraft on the moon

Page 22: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The “Space Race”

Page 23: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

An Affluent Nation

Prosperity led Americans to new expectations of middle class life

Levittowns – mass-produced housing that made home ownership more available

“Cookie Cutters” -- “Little Boxes” Mass move to suburbs Automobile ownership more

widespread

Page 24: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

An Affluent Nation

Levittown, NY

Page 25: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

An Affluent Nation

“Every man in his own castle!”

Page 26: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

An Affluent Nation

A “typical” house for a typical family

Page 27: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The Television Age

Television programming reflected ideals of the Cold War

Traditional family, personal affluence Unintended consequence: began to

create a sense of alienation in less affluent Americans who saw middle class life on TV, but could not attain it

Page 28: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The “Beats”

Others protested what they saw as a society that was too organized and restrictive

Protest among young intellectuals who called themselves “Beats”

Wrote about how the affluence could also be oppressive

Page 29: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The “Beats”

Allen Ginsberg: “Howl”

Jack Kerouac: On The Road, The Dharma Bums, Visions of Cody. The Subterraneans

Page 30: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The “Beats”

Salinger: the Catcher in the Rye, Franny and Zooey

William H. Whyte: The Organization Man

Page 31: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Other protests

Some films picked up the protest genre

James Dean, Rebel Without a Cause

Marlon Brando, The Wild One

Page 32: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Other protests

Elvis Presley, rock ‘n roll music

Contradictions: teenagers protested their parents’ emphasis on affluence

But they enjoyed the affluence they protested

Not unlike the “Occupy” crowd

Page 33: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The Civil Rights Movement Michael Harrington, The Other

America (1962) Book pointed out how many

Americans did not share in prosperity

Migrant workers, sharecroppers, black Americans in inner cities

Black Like Me (1961), John Howard Griffin

Page 34: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The Civil Rights Movement

In 1954, the Supreme Court issued the decision in Brown v. Board of Education of Topeka, Kansas

Brown overturned Plessy v. Ferguson (1896)

Plessy had established the “separate but equal” standard for segregated public accommodations

Page 35: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The Civil Rights Movement

New order: all government funded institutions must be de-segregated with “all due speed”

Followed up with another order the next year

“All due speed” ended up being as much as ten years, or more

Page 36: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The Civil Rights Movement

Eisenhower hesitated to enforce desegregation too vigorously

Country “not ready yet” Meanwhile, black leadership forming

to exert “massive resistance” to segregation

Equal pressure began to form by “White Citizens Councils” (successor to the KKK)

Page 37: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The Civil Rights Movement

1957, protests as first black students enrolled at Little Rock HS

Eisenhower reluctantly sent National Guard troops to Little Rock to ensure black students’ safety

Page 38: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The Civil Rights Movement

In Montgomery, Alabama, Rosa Parks was arrested for refusing to stand up to give up her seat to a white man on a city bus

There had been other such cases, but this one became a symbol

Bus boycott led by Rev. Martin Luther King, Jr.

Page 39: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The Civil Rights Movement

The Civil Rights Movement at first was characterized by non-violence

Influence of Mohandas Gandhi Much of white middle class (and US

government officials) claimed the movement was communist-influenced

USSR propaganda frequently pointed out poor situation of black Americans as one of the “evils of capitalism”

Page 40: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Eisenhower’s America

Emphasis on “what was good for business”

“What’s good for General Motors is good for the USA”

Emphasis on containing communism, supporting democracies that supported the USA

Ignored McCarthyism, which eventually self-destructed

Page 41: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Eisenhower’s America

Secretary of State John Foster Dulles crafted foreign policy of confrontation with communism

Called “brinkmanship” – Push USSR to brink of war, if necessary

Underlying idea: nuclear war so frightening a prospect that neither power would go that far, but push to edge anyway as power tactic

Page 42: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Eisenhower’s Crises

Conclusion of Korean War 1953 led to permanent split between communist North and democratic South

Korea remains divided at the 38th parallel of latitude

Page 43: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Eisenhower’s Crises

Technically there is a truce (a cease-fire, not a treaty)

A state of war still exists

Every now and then, hostilities flicker

Page 44: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Eisenhower’s Crises

The French lost their colony of Viet Nam in 1954 to communist forces led by Ho Chi Minh (“He Who Enlightens,” AKA Nguyễn Sinh Cung)

Page 45: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Eisenhower’s Crises

Ike refused to send combat troops to prevent communist victory, but did send “advisors”

And the US provided financial aid and military advice to South Viet Nam when country split in two in 1956

Page 46: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Eisenhower’s Crises

The state of Israel was created by the UN in 1948 as a homeland for displaced Jews of Europe

“Palestine” (then administered by Great Britain under a League of Nations mandate) was partitioned

The state of Israel was founded, and was immediately attacked by neighboring Arab countries

Page 47: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Eisenhower’s Crises

Eisenhower’s foreign policy was unwavering in its support of Israel

Saw Israel as an essential democratic ally in Middle East

And as a buffer against communist influences there

Page 48: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Eisenhower’s Crises

USSR under Josef Stalin continued to absorb former Nazi captive nations of Eastern Europe

Winston Churchill spoke at Westminster College in Fulton, Missouri in 1946

“From Stettin in the Baltic to Trieste in the Adriatic an "iron curtain" has descended across the continent . . . “

Page 49: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

The Iron Curtain

Page 50: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

Eisenhower’s Crises

1960 embarrassment: Ike had publicly denied any US

spying on USSR On the eve of a “summit” meeting

between Ike and USSR premier Nikita Khrushchev . . .

Page 51: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

U-2 Incident

US U-2 spy plane (joint USAF/CIA operation) shot down over Russia

Page 52: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

U-2 Incident

Civilian CIA pilot Francis Gary Powers was captured and imprisoned

Page 53: The Affluent Society Chapter 28. A New Affluence in the USA  USA was the only nation in WWII that was NOT bombed during the war  US economy benefited

U-2 Incident

Powers was later exchanged for Soviet KGB Colonel Vilyam Fisher (aka Rudolf Abel)

Fisher/Abel was a Soviet colonel who was caught by the FBI and imprisoned for espionage 

Cold War tensions escalated