““The Cold War The Cold War Begins”Begins”

(1945-1952)(1945-1952)Chapter 37Chapter 37

I. I. The Immediate Post WWII The Immediate Post WWII Economic TrendsEconomic Trends::

The GNP (Gross National Product) slumped The GNP (Gross National Product) slumped badly in 1946-47badly in 1946-47

Consumer prices rose Consumer prices rose 33%33% in 1946-47 in 1946-47 Epidemic of strikes (steel, auto, coal)Epidemic of strikes (steel, auto, coal) There is a “conservative” backlash against There is a “conservative” backlash against

the rising power of organized labor:the rising power of organized labor:• Taft-Hartley Act (1947)Taft-Hartley Act (1947) – outlawed the – outlawed the

“closed” (all-union) shop, increased union “closed” (all-union) shop, increased union liability, forced union leaders to take a non-liability, forced union leaders to take a non-communist oathcommunist oath

II. II. Our Government’s Effort to Our Government’s Effort to Prevent Lapsing Back Into Prevent Lapsing Back Into

DepressionDepression:: Employment Act (1946)Employment Act (1946)--

The Servicemen’s Re-Adjustment The Servicemen’s Re-Adjustment Act (1944)Act (1944) (a.k.a. – The “GI Bill”) (a.k.a. – The “GI Bill”)• What did it do?What did it do?

III. III. 1950-1970 Economic Trends1950-1970 Economic Trends::

An economic “BOOM”. An economic “BOOM”. TwoTwo decades of decades of uninterrupted economic growth.uninterrupted economic growth.

National income National income doubleddoubled in the 1950s and in the 1950s and doubleddoubled once again in the 1960s. once again in the 1960s.

U.S. had 6% of world’s population but U.S. had 6% of world’s population but 40%40% of the of the world’s wealth.world’s wealth.

Emergence of the Emergence of the “middle class”“middle class” (was 60% of (was 60% of the American pop. By mid 1950s)the American pop. By mid 1950s)

60% of Americans 60% of Americans ownedowned their homes by 1960. their homes by 1960. Growth of the Growth of the “service sector”“service sector” and the benefits and the benefits

to women.to women.

IV. IV. Factors which propelled this Factors which propelled this “Economic Explosion”“Economic Explosion”::

WWII itselfWWII itself ““permanent war economy” – built on large permanent war economy” – built on large

military budgets which fed key industries. military budgets which fed key industries. (“High Tech”)(“High Tech”)

Cheap energyCheap energy Large gains in worker productivity (3%/year)Large gains in worker productivity (3%/year) Rising educational levelRising educational level Shift in basic economic structure Shift in basic economic structure awayaway from from

farmingfarming

V. V. Economic Prosperity Caused Economic Prosperity Caused Americans to Become Americans to Become

“Footloose” in the Post-war Era“Footloose” in the Post-war Era::

30,000,000 changed residencies 30,000,000 changed residencies each yeareach year

More More stressstress on families as they on families as they spread farther apart. *** Dr. spread farther apart. *** Dr. Benjamin Spock – “self-help” books.Benjamin Spock – “self-help” books.

The rise of the The rise of the “sunbelt”“sunbelt” (the pull of (the pull of jobs, climate, and low taxes)jobs, climate, and low taxes)

VI. VI. The Growth of “Suburbia”The Growth of “Suburbia”::

““White Flight”White Flight”• Effects?Effects?

VII. VII. The “Baby-Boom”The “Baby-Boom”: : (1945-1960)(1945-1960)

50,000,000 babies born50,000,000 babies born• The The “Ripple-Effect“Ripple-Effect””

50s – baby stuff50s – baby stuff 60s – clothes & rock music60s – clothes & rock music 70s – clothing styles70s – clothing styles 80s & 90s – job competition80s & 90s – job competition 2000s – retirement, old age things2000s – retirement, old age things

VIII. VIII. “Give ‘em Hell” Harry“Give ‘em Hell” Harry::

President Harry S Truman (1945-52)President Harry S Truman (1945-52)• ““The Buck Stops Here”The Buck Stops Here”• Atomic bombAtomic bomb

IX. IX. The Yalta ConferenceThe Yalta Conference::

Feb. 1945 (Soviet Union)Feb. 1945 (Soviet Union) FDR, Churchill, StalinFDR, Churchill, Stalin United Nations (conf. in San United Nations (conf. in San

Francisco in 1945)Francisco in 1945) Poland “betrayal” (those darn Poland “betrayal” (those darn

Soviets!!!)Soviets!!!)

X. X. The U.S. & The U.S.S.R.: The U.S. & The U.S.S.R.: Opposites Don’t Always AttractOpposites Don’t Always Attract::

The foundation for the Cold War ------- The foundation for the Cold War ------- “The Iron Curtain”“The Iron Curtain”

Comparison of governments, Comparison of governments, economies, post WWII conditions, economies, post WWII conditions, post WWII goalspost WWII goals

XIII. XIII. Crystallizing the Cold WarCrystallizing the Cold War::

ContainmentContainment – – (1947, George (1947, George Kennan)Kennan)

Truman DoctrineTruman Doctrine-- Marshall PlanMarshall Plan- - The European The European

Recovery Plan (1947)Recovery Plan (1947) $12.5 billion$12.5 billion

XIV. XIV. America RearmsAmerica Rearms::

National Security ActNational Security Act- (1947)- (1947)• National Security CouncilNational Security Council• Central Intelligence Agency (CIA)Central Intelligence Agency (CIA)

A 2A 2ndnd “ “Red ScareRed Scare””• McCarthyismMcCarthyism

China falls to communism (1949)China falls to communism (1949) Soviet Union Gets the A-bomb (1949)Soviet Union Gets the A-bomb (1949) (1950) U.S. Government issues anti-(1950) U.S. Government issues anti-

communism resolution known as communism resolution known as NSC-68NSC-68

The Korean War (1950-1953)The Korean War (1950-1953)

N. Korea crosses the 38N. Korea crosses the 38thth parallel and parallel and invades S. Korea (1950).invades S. Korea (1950).

Fought in the name of “containment”Fought in the name of “containment” A “limited war”A “limited war” ““Hawks” & “Doves” (mostly “doves”)Hawks” & “Doves” (mostly “doves”) Over 2,000,000 killedOver 2,000,000 killed The firing of General MacArthurThe firing of General MacArthur The “The “Forgotten WarForgotten War” -Why????” -Why????