1. Beginning of the Cold War

2. How did the US and the Soviet Union move from allies to enemies?  Uneasy alliance Different economic and political systems Different economic and political systems  Development of atomic bomb Stalin resents U.S. hid atomic bomb Stalin resents U.S. hid atomic bomb  COLD WAR: conflict between nations carried on by political and economic means rather than direct conflict

3. Former Allies Clash  The Potsdam Conference July 1945 conference with U.S., Great Britain, and Soviet Union July 1945 conference with U.S., Great Britain, and Soviet Union  Stalin does not allow free, multiparty elections in Poland Bans democratic parties Bans democratic parties  Soviets want reparations from Germany; Truman objects  Agree to take reparations mainly from own occupation zones  U.S. emerges from war as great economic power Wants Eastern European raw materials, markets Wants Eastern European raw materials, markets

4. TENSIONS MOUNT  Soviet Union also has great economic and military strength  Unlike U.S., Soviet Union suffered heavy devastation on own soil  Installs communist rule in satellite nations (countries it dominates)  1946 Stalin announces that war between communism and capitalism inevitable

5. DEMOCRACY VS. COMMUNISM A form of government in which the supreme authority rests with the people A system of government in which there is no private property and there are no economic classes

6. Democracy vs. Communism  Freedom  Individual  Capitalism  Socialism  Equality  Totalitarian

7. CAPITALISM: Economic system in which most businesses are privately owned Freedom of competition

8. SOCIALISM:  Government ownership of industry  Created as a reaction to capitalism  Classless society  Goal is to bring economic equality to the people

9. DEMOCRATIC  Government by the people  2 forms 1.Representative 2.direct

10. TOTALITARIAN  A form of government in which the person or party in charge has absolute control over all aspects of life  No freedom of press or speech

11. FREEDOM  The condition of being free  Most valued  Freedom of the press  Freedom of speech  Freedom to do business

12. EQUALITY  Condition of being equal  Most valued: basic needs met for all such as food, housing education and jobs

13. INDIVIDUAL  Stresses the need for people to do things on their own  Competition: the best get to the top

14. CONTAINMENT  U.S. establishes policy of containment (measures to prevent spread of communism)

15. IRON CURTAIN  Coined by Winston Churchill  March 1946  Described Soviet control over Eastern European countries  Stalin used Churchill’s words to persuade his people that the US and Great Britain were enemies of the Soviet Union

16. WORLD RELATIONS  Conflict between US and Soviet Union made many western Europeans nations uneasy  NATO forms in April 1949  Warsaw Pact forms in 1955  WWII also raised concerns about the financial relationships between countries