1. “The Cold War Begins” (1945-1952) Chapter 37

2. I. The Immediate Post WWII Economic Trends: The GNP (Gross National Product) slumped badly in 1946-47 The GNP (Gross National Product) slumped badly in 1946-47 Consumer prices rose 33% in 1946-47 Consumer prices rose 33% in 1946-47 Epidemic of strikes (steel, auto, coal) Epidemic of strikes (steel, auto, coal) There is a “conservative” backlash against the rising power of organized labor: There is a “conservative” backlash against the rising power of organized labor: Taft-Hartley Act (1947) – outlawed the “closed” (all-union) shop, increased union liability, forced union leaders to take a non- communist oathTaft-Hartley Act (1947) – outlawed the “closed” (all-union) shop, increased union liability, forced union leaders to take a non- communist oath

3. II. Our Government’s Effort to Prevent Lapsing Back Into Depression: Employment Act (1946)- Employment Act (1946)- The Servicemen’s Re-Adjustment Act (1944) (a.k.a. – The “GI Bill”) The Servicemen’s Re-Adjustment Act (1944) (a.k.a. – The “GI Bill”) What did it do?What did it do?

4. III. 1950-1970 Economic Trends: An economic “BOOM”. Two decades of uninterrupted economic growth. An economic “BOOM”. Two decades of uninterrupted economic growth. National income doubled in the 1950s and doubled once again in the 1960s. National income doubled in the 1950s and doubled once again in the 1960s. U.S. had 6% of world’s population but 40% of the world’s wealth. U.S. had 6% of world’s population but 40% of the world’s wealth. Emergence of the “middle class” (was 60% of the American pop. By mid 1950s) Emergence of the “middle class” (was 60% of the American pop. By mid 1950s) 60% of Americans owned their homes by 1960. 60% of Americans owned their homes by 1960. Growth of the “service sector” and the benefits to women. Growth of the “service sector” and the benefits to women.

5. IV. Factors which propelled this “Economic Explosion”: WWII itself WWII itself “permanent war economy” – built on large military budgets which fed key industries. (“High Tech”) “permanent war economy” – built on large military budgets which fed key industries. (“High Tech”) Cheap energy Cheap energy Large gains in worker productivity (3%/year) Large gains in worker productivity (3%/year) Rising educational level Rising educational level Shift in basic economic structure away from farming Shift in basic economic structure away from farming

6. V. Economic Prosperity Caused Americans to Become “Footloose” in the Post-war Era: 30,000,000 changed residencies each year 30,000,000 changed residencies each year More stress on families as they spread farther apart. *** Dr. Benjamin Spock – “self-help” books. More stress on families as they spread farther apart. *** Dr. Benjamin Spock – “self-help” books. The rise of the “sunbelt” (the pull of jobs, climate, and low taxes) The rise of the “sunbelt” (the pull of jobs, climate, and low taxes)

7. VI. The Growth of “Suburbia”: “White Flight” “White Flight” Effects?Effects?

8. VII. The “Baby-Boom”: (1945-1960) 50,000,000 babies born 50,000,000 babies born The “Ripple-Effect”The “Ripple-Effect” 50s – baby stuff 50s – baby stuff 60s – clothes & rock music 60s – clothes & rock music 70s – clothing styles 70s – clothing styles 80s & 90s – job competition 80s & 90s – job competition 2000s – retirement, old age things 2000s – retirement, old age things

9. VIII. “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

10. IX. The Yalta Conference: Feb. 1945 (Soviet Union) Feb. 1945 (Soviet Union) FDR, Churchill, Stalin FDR, Churchill, Stalin United Nations (conf. in San Francisco in 1945) United Nations (conf. in San Francisco in 1945) Poland “betrayal” (those darn Soviets!!!) Poland “betrayal” (those darn Soviets!!!)

11. X. The U.S. & The U.S.S.R.: Opposites Don’t Always Attract: The foundation for the Cold War ----- -- “The Iron Curtain” The foundation for the Cold War ----- -- “The Iron Curtain” Comparison of governments, economies, post WWII conditions, post WWII goals Comparison of governments, economies, post WWII conditions, post WWII goals

12. XIII. Crystallizing the Cold War: Containment – (1947, George Kennan) Containment – (1947, George Kennan) Truman Doctrine- Truman Doctrine- Marshall Plan- The European Recovery Plan (1947) $12.5 billion Marshall Plan- The European Recovery Plan (1947) $12.5 billion

13. XIV. America Rearms: National Security Act- (1947) National Security Act- (1947) National Security CouncilNational Security Council Central Intelligence Agency (CIA)Central Intelligence Agency (CIA) A 2 nd “Red Scare” A 2 nd “Red 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- communism resolution known as NSC-68 (1950) U.S. Government issues anti- communism resolution known as NSC-68

14. The Korean War (1950-1953) N. Korea crosses the 38 th parallel and invades S. Korea (1950). N. Korea crosses the 38 th parallel and 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 killed Over 2,000,000 killed The firing of General MacArthur The firing of General MacArthur The “Forgotten War” -Why???? The “Forgotten War” -Why????