The Cold War Begins Chapter 37

After the War Employment Act of 1946 – to promote maximum employment, production, and purchasing power Council of Economic Advisors – 3 member council to provide president with data and advice GI Bill of Rights – GI Bill gave soldiers generous provisions to complete school.

The Long Economic Boom The American economy entered a 20 year period of growth National income nearly doubled The size of the middle class doubled from pre-Great Depression days

Postwar Economy The upturn was also fueled by money to be spent for the Korean War Military budgets – aerospace, plastics, and electronics US and Europe controlled the flow of petroleum from the Middle East

Education By 1970, nearly 90% of school age children were enrolled and attending school The work force was shifting OUT of agriculture

The Sunbelt 15 state area from VA to FL to TX to AZ and CA 1950s – CA had 1/5 of the nation’s pop. In search of jobs, better weather, and lower taxes

The Suburbs White American families made a move to the suburbs The Federal Housing Administration (FHA) and Veterans Administration (VA) made home-loan guarantees

“White Flight” Many whites left the city for the suburbs, while the migration of blacks from the South continued into cities. Many inner-cities became poverty-stricken. The FHA often refused home-loans to minority families thus limiting mobility out of the city.

Baby Boom Birthrate in the US exploded as the “baby boom” took place 50 million babies by 1959

The US and USSR Different visions of the postwar world separated the two superpowers. Stalin aimed above all to guarantee the security of the Soviet Union. Created “Satellite Nations” in Eastern and Central Europe. He made it clear from the outset of the war that he was determined to have friendly governments along the Soviet western border.

Post War World 1944 – Allies met to create International Monetary Fund (IMF) to encourage world trade by regulating exchange rates World Bank – to promote growth in underdeveloped nations The United Nations – April 25, 1945 – 50 nations met in San Francisco to sign the United Nations Charter Security Council – US, Britain, France, China, and USSR given veto powers Assembly – to be controlled by smaller nations

Nuremburg Trials Germany was destroyed by war German Nazi leaders were put on trial at Nuremberg, Germany from Nazi leaders were tried and punished for war crimes 12 hanged

Problems with Germany Austria and Germany had been divided into 4 military occupation zones Each zone was assigned to one of the Big Four powers (France, Britain, America, and the USSR).

A Divided Germany Russia took control of Eastern Germany, while the Allies (US, Britain, and France) retained control of Western Germany West Germany eventually became an independent country East Germany became bound the Soviet Union as an independent “satellite” state, shutoff from the Western world by the “iron curtain” of the Soviet Union.

Berlin Berlin was the capital of Germany and was completely surrounded by the Soviet Occupation Zone Berlin divided into 4 occupation zones Soviets attempted to blockade the city of Berlin 1949 – The US began airlifts to Berlin

The Containment Doctrine George F. Kennan Containment Doctrine - This concept stated that Russia was relentlessly expansionary. Kennan argued that the Soviet Union was also cautious, and the flow of Soviet power could be stemmed by firm and vigilant containment.

Truman Doctrine March 12, 1947, President Truman came before Congress and requested support for the Truman Doctrine declared that it must be the policy of the United States to aid any country that was resisting communist aggression.

Marshall Plan Secretary of State George C. Marshall invited the Europeans to get together and work out a joint plan for their economic recovery the United States would provide substantial financial assistance. Marshall offered the same aid to the Soviet Union and its allies, but the Soviets refused it. Within a few years, European economies were flourishing

Israel Middle Eastern oil was crucial to the European recovery program and to the health of the U.S. economy. Despite threats from the Arab nations to cut off the supply of oil, President Truman officially recognized the state of Israel on May 14, 1948.

Controlling Communism The Cold War, the struggle to contain Soviet communism, was not a war, yet it was not a peace In 1947, Congress created the Department of Defense headed by a new cabinet officer, the secretary of defense. The uniformed heads of each service were brought together as the Joint Chiefs of Staff.

National Security The National Security Act also established the National Security Council (NSC) to advise the president on security matters Central Intelligence Agency (CIA) created to coordinate the government’s foreign fact-gathering.

Rebuilding Germany In 1948, the United States joined the European pact, called the North Atlantic Treaty Organization (NATO). It provided a framework for the reintegration of Germany into the European family. The pact pledged each signed nation to regard an attack on one as an attack on all. The Senate passed the treaty on July 21, 1949.

What About Asia ? Gen. Douglas MacArthur took control of the newly democratic Japan In 1946, a MacArthur- dictated constitution was adopted. It renounced militarism and introduced western-style democratic government

Mao Zedong & Chinese Communism China was another story – The Chinese Nationalist government of Jiang Jieshi was forced to flee to Taiwan Communists, led by Mao Zedong, swept over the country. The collapse of Nationalist China was a depressing loss for America and its allies.

USSR & The Bomb September the Soviet Union exploded its first atomic bomb Truman ordered the development of the H- bomb The first H-bomb was exploded in The Soviets exploded their first H-bomb in 1953, and the nuclear arms race was on.

Loyalty Review Board Loyalty Review Board - to investigate the possibility of communist spies in U.S. government Congressman Richard M. Nixon led the hunt for and eventual conviction of Alger Hiss, a prominent ex-New Dealer and communist.

The Rosenbergs In 1951, Julius and Ethel Rosenberg were convicted and sentenced to death for stealing American atomic bomb plans and selling them to the Soviet Union. They were the only people in history to be sentenced to death for espionage.

Election of 1948 the Republicans chose Thomas E. Dewey to run for president The Democrats chose Truman Southern Democrats met and nominated Governor J. Strom Thurmond Thurmond pictured at left

Dewey Defeats Truman ? On Election Day, Truman, although not winning the popular vote, beat Dewey and was reelected as president. Truman’s victory came from the votes of farmers, workers, and blacks.

Korea When Japan collapsed in 1945, Korea had been divided up into two sections. The Soviets controlled the north above the 38 th parallel and the United States controlled south of that line. June 25, 1950, the North Korean army invaded South Korea

Korea Truman ordered a massive military buildup, well beyond what was necessary for the Korean War. The buildup was called NSC-68 On June 25, 1950, President Truman obtained from the United Nations Security Council a unanimous condemnation of North Korea as an aggressor. Truman ordered air and naval units to go and support South Korea without Congressional approval

Korea On September 15, 1950, General MacArthur succeeded in pushing the North Koreans past the 38 th parallel. On November 1950, though, hordes of communist Chinese “volunteers” attacked the U.N. forces, pushing them back to the 38 th parallel.

Korea Due to General MacArthur’s insubordination and disagreement with the Joint Chiefs of Staff about increasing the size of the war, President Truman was forced to remove MacArthur from command on April 11, In July 1951, truce discussions dragged out over the issue of prisoner exchange.