Cold War/ Life in Post WWII AmericanUnit Notes

Civics Text: Chapter 15- Economics and the American Economy“The American Economic System”- Text p. 243-249”

What is an economy or economic system?

Land (Natural Resources…)

Labor( work that people do)

Capital ( money, items bought with money)

MarxEngel

Goods (physical items people can buy)

Services ( jobs or task people pay other people to do for them)

Civics Text: Chapter 15- Economics and the American Economy“The American Economic System”- Text p. 243-249”

What are the basic differences between capitalism(free enterprise,

market economy), socialism and communism (command economy)?

Communism/Command Economy:

1) This type of economy was started by Karl Marx and Friedrich Engel.

2) The government or central authority decides how the factors of production, land, labor and capital (money) will be used. There is little individual choice in how to use the factors of production.

Example: The government will tell the people what and how much of something to make.

3) Many command economies are found in countries that have dictatorships.

People who criticize the government and how they operate can be punished.

MarxEngel

“From each according to his ability, to each according to his need”

“Workers of the World Unite”

What are the basic differences between capitalism(free enterprise, market economy), socialism and communism (command economy)?

Communism/ Command Economy:

- All of the factors of production are owned collectively by the government.

- There is little or no private ownership of property.

- The government gives goods and services to people based on their needs.

- People are directed by the government into certain jobs and levels of education based on the needs of the economy.

- Tries to eliminate economic classes. ( Wealthy, Middle Class, Poor)

- Organized religion is outlawed or discouraged.

Civics Text: Chapter 15- Economics and the American Economy“The American Economic System”- Text p. 243-249”

What are the basic differences between capitalism(free enterprise, market

economy), socialism and communism (command economy)?

Socialism:

- Wealth should be distributed equally.

- Nationalization- government owns, or controls most of the important businesses and industries in the country.

- The government provides public services to all those in need. Like welfare if you lose your job, health care, retirement payments.

- Taxes are very high.

Civics Text: Chapter 15- Economics and the American Economy“The American Economic System”- Text p. 243-249”

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What are the basic differences between capitalism(free enterprise, market economy), socialism and communism (command economy)?

Market Economy- Free Enterprise, or Capitalism:

-In this type of economy private individuals decide how the factors of production

(land, labor, capital) are used, and how goods and services are produced and

distributed.

-There is little or no government control of the economy.

-It is based on competition for profits. The buyers (consumers) and sellers

(producers) in an economy make the economic decisions. Their decisions

determine how land, labor and capital are used in a country’s economy.

- Adam Smith, a Scottish philosopher, economist and writer first developed the

- idea of a modern market economy.

-Wealth of Nations- 1776, a book written by Adam Smith that outlined the basic economic principles of capitalism.

Smith

“Invisible Hand”

Civics Text: Chapter 15- Economics and the American Economy“The American Economic System”- Text p. 243-249”

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How does supply and demand influence prices of goods and services?

• Supply- The amount of a good or service available at a certain price.

• Demand- Amount of people who want to buy a good or service at a certain price.

Civics Text: Chapter 15- Economics and the American Economy“The American Economic System”- Text p. 243-249”

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How does supply and demand influence prices of goods

and services?

• Market Price- Is the price at which the seller / producer is willing to sell their goods or services and the buyer is willing to buy them. Think of it as bartering or haggling over a price.• A seller must be careful not to sell their product for less than it

cost them to make, or they will take a loss and not make a profit.

• A buyer must be careful not to spend more money than what they have or they could go into debt.

Civics Text: Chapter 15- Economics and the American Economy“The American Economic System”- Text p. 243-249”Write this in the “other information” box on p. 4

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Civics Text: Chapter 15- Economics and the American Economy“The American Economic System”- Text p. 243-249”

Price

Quantity or Amount of a good or service

Supply

Demand

Market Price

1000 2000 3000 4000 5000

$10.00

$20.00

$30.00

$40.00

$50.00

Mixed Economy

Is an economy that has a combination of socialism and capitalism.

The United States is a mixed economy.

Example- Social Security, Medicare, regulating industries/stock market, stopping monopolies, using tax money to help large businesses if they are going to fail.

Civics Text: Chapter 15- Economics and the American Economy“The American Economic System”- Text p. 243-249”

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Cold War

After WWII, the U.S. and U.S.S.R. emerged as the two strongest

countries (superpowers). Because of economic and political

differences the nations became rivals. The two never

directly fought each other, but they did come to the brink of war on

many occasions. The tension between the two countries would

influence and dominate world events for the next 50 years.

Berlin Blockade and Airlift

After WWII, the U.S. and U.S.S.R. began to distrust each other more

than ever. At the Potsdam Conference, Stalin had promised to allow

free elections in Eastern Europe. He broke his promise and set up

communist/ pro- Soviet governments in those countries. Stalin did

this because he was upset at the idea of German reunification. To

show his unhappiness the U.S.S.R. blockaded West Berlin. In

response the U.S. launched a massive airlift of supplies into West

Berlin. Winston Churchill added to people’s mistrust of communism

when he stated that an “Iron Curtain” had fallen over Eastern Europe.

America was afraid of communism spreading around the world and

eventually to the United States.

Berlin

West Berlin

East Berlin

East Germany

West Germany

Berlin Blockade and Airlift

NATO and Warsaw Pact

United States created NATO (North Atlantic Treaty Organization), as a defensive alliance for Western Europe as the communists gained control of Eastern Europe. In response to NATO, the Soviet Union created the Warsaw Pact alliance for the nations of Eastern Europe.

NATO and the Warsaw Pact

•Soviet Union •Albania (until 1968) •Bulgaria •Czechoslovakia •East Germany (until 1990) •Hungary •Poland •Romania

U.S., Canada, Belgium, Denmark, France, Great Britain,, Iceland, Italy, Luxembourg, Netherlands, Norway, Portugal, Turkey. Original members 1949

Ch. 27.1 SQ3R“Peacetime Adjustments and the Cold War” Text p. 845-849

East v West

West (U.S., Democracies) vs. East (U.S.S.R., Communism)

West East

Ch. 27.1 SQ3R“Peacetime Adjustments and the Cold War” Text p. 845-849

Truman Doctrine

This was President Harry Truman’s main strategy to fight the Cold War. Through the Marshall Plan and other programs, the U.S. gave money and military support to help rebuild Europe after the war. To receive this aid countries had to pledge to support democracy (couldn’t be Communist).

President Harry S. Truman

Ch. 27.1 SQ3R“Peacetime Adjustments and the Cold War” Text p. 845-849

Containment

The U.S’s policy of stopping the spread of communism. The U.S felt

that if they could stop communism from spreading to other countries,

Then it could be “rolled back” and pro-western governments

(democracies) could be set up in those countries.

Communists

Socialists

Reds

Democratic

Democracy

Free World

Capitalism

Fear of Communism “ Second Red Scare”

Ever since the end of WWI Americans had a fear of communism spreading to the U.S. During the 1950s the country will go through another fear of communism spreading to the U.S. and around the world.

Communism

House Un-American Activities Committee (HUAC)

The HUAC’s role was to find communists in American society and government. Their actions sparked a panic in the country, and many people had their lives ruined simply by being accused or investigated for doing things that seemed un-American (communist).

Many people were investigated and some were put on trial to spying on the U.S. during the Cold War.

Communism

Julius and Ethel Rosenberg-executed for spying on the U.S.

McCarthyism

McCarthy used American’s fear of communism to gain political power.

He claimed to have the names of communists working within the

government. His claims were never proven. His accusations ruined the

lives of many people. The word “McCarthyism” refers to anyone

making reckless accusations against other people.

In 1954, McCarthy held televised public hearings to expose communists

in America. During the hearings he accused members of the U.S.

military of being communists. After these hearings, McCarthy lost

credibility with the American people.

Senator Joseph McCarthy

Arms and Space Race

Arms Race

Under President Eisenhower, the U.S. developed a policy of “Brinksmanship”,

which meant the U.S would go to the brink of war (nuclear war) with the

Soviet Union to stop the spread of communism. This started a nuclear arms

build up by both countries. Both countries developed a Hydrogen bomb by the

middle of the 1950’s. The idea of Mutually Assured Destruction (MAD) in

some ways actually kept the U.S. and U.S.S.R from attacking each other.

H-Bomb Test

Arms and Space Race

Space Race

The United States and the Soviet Union competed against each

other to be the first to go into space. The Soviet Union launched the

first satellite in 1957, named “Sputnik”. At first the U.S. was losing the

“space race”, but eventually caught up and passed the Russians by

landing men on the Moon. This lead to many changes in America,

especially in the area of education. A greater emphasis was placed on

math and science after the launching of Sputnik.

Sputnik

Spying During the Cold War- U2 Incident

Both countries spied on each other. May 1, 1960, a U-2 spy plane piloted

by Francis Gary Powers was brought down over Soviet Union. The

U.S. had always denied that it was spying on the Soviet Union, now the

Soviets had proof that we were. Here in the U.S., Julius and Ethel

Rosenberg were tried and executed for allegedly selling atomic bomb

secrets to the Soviets.

Events leading to the start of the Korean War

After WWII, Korea was divided into two countries at the 38th Parallel

line(38o N Latitude). North Korea became a communist country with

the support of China and the Soviet Union. South Korea had a non-

communist government and was supported by the United States. In June

1950, North Korea invaded South Korea. President Truman asked for

the United Nations to send a peace keeping force into Korea to stop the

fighting. The U.S. made up the biggest part of the U.N. forces. Official

the U.S. never declares war, but instead enters the conflict as a policing

force under the United Nation with the goal of stopping North Korea’s

aggression.

Korean War Memorial, Washington DC

Events leading to the start of the Korean War

China’s involvement in the war

The U.N. forces under the command of General Douglas MacArthur

were able to push the North Koreans back across the 38th Parallel.

MacArthur continued to advanced deeper into North Korea. At this

point China became alarmed and warned that if U.N. forces continued to

move closer to their border they would enter the war on the side of

North Korea. The U.N. forces did not withdraw and China entered the

war. MacArthur wanted to attack China directly, but President Truman

did not allow him for fear that Korea would grow into a larger conflict.

Truman eventually replaces MacArthur.

Truman and MacArthur

Outcomes of the Korean War

A cease fire went into effect on July 27, 1953. President Eisenhower

brought the war to an end as he had promised in his election campaign.

The war ended in a stalemate. The border between North and South

Korea remained at the 38th Parallel (DMZ- Demilitarized Zone). Many

Americans felt frustrated by the indecisive war. Over 33,000 American

soldiers were killed in the war, with another 103,000 being wounded.

Life in America after WWII and during the 1950sText p. 859-863

Growth of Suburbs

The strong economy and the surge in birth rates (baby boom) led to

more people wanting a house of their own. This led to the building of

affordable homes in-between the country and city (suburbs). The

suburbs allowed many Americans to own a home for the first time.

For the first time since before the Civil War more people were moving

to the South and West (Sun Belt) rather than the East and North.

Life in America after WWII and during the 1950sText p. 859-863

Conformity

The red scare and the fear of being labeled as different or un-

American put a great deal of pressure on people to “conform” with the

rest of society. It went beyond just dressing or looking a similar way.

People became concerned that they held similar idea and values to

those around them. This way they would not stand out from the rest of

society.

Life in America after WWII and during the 1950sText p. 859-863

Conformity

Some Americans were upset about the amount of conformity they

saw in society and openly challenged the status quo. One such

group became known as “beatniks”. Novelist Jack Kerouac is one

of several people credited with starting the beatnik movement

during the 1950s.

Jack Kerouac

Life in America after WWII and during the 1950sText p. 859-863

Consumerism- Economic Changes

After WWII industries had to switch from making military equipment

to consumer goods. The America economy expanded and was

stronger than ever. The hard economic times of the Great Depression

(1929-1945) were finally over. The 1950s, in general, can be

characterized as a period of economic prosperity, and growth of the

middle-class. More people could afford luxury goods, like cars and

appliances. The 1950s, were also marked by a growth in consumerism

(people buying goods and services).

Life in America after WWII and during the 1950sText p. 859-863

Consumerism- Role of Women

Many women had to give up their jobs to returning servicemen

after the war. They were encouraged to return to more domestic or

traditional female occupations.

Life in America after WWII and during the 1950sText p. 859-863

Consumerism- African Americans

African Americans had hoped that after the war discrimination and

segregation would end in the workforce and throughout America

society, but it did not. Only in the military did segregation end.

Africa-Americans continued to lag behind economically and didn’t

fully enjoy the prosperity of the 1950s.

Life in America after WWII and during the 1950sText p. 859-863

Consumerism- Poor in America

Even though the 1950s can be seen a prosperous

time in American history, there was still large amounts of poverty.

This was especially true in the cities. With wealthier and middle class

families leaving for the suburbs that left the poor to live in urban

(cities) areas. Many could not buy the consumer goods, or take

advantage of the economic prosperity created after WWII.

Life in America after WWII and during the 1950sText p. 859-863

Entertainment

Rock n’ Roll and television were just starting to grow in popularity. Both

became major industries during the 50s.

Life in America after WWII and during the 1950sText p. 859-863Medical and Technological Changes

Polio Vaccine- Polio had been a major disease inflicting tens of

thousands of people in America prior to WWII. Scientist and

doctors develop a vaccine to prevent people from getting polio.

Interstate Highway System- President Eisenhower directs the

building highways connecting the entire country.

Computers- First mainframe computers are developed. The space

race with the Soviet Union advanced the use of computers.

Air Conditioning- allows people to move to the “Sun Belt” states in

the south and west.

Dr. Jonas Salk- Polio Vaccine

Life in America after WWII and during the 1950sText p. 859-863Fear of Communist in America and Nuclear War

Despite all of the positive aspects of life in post-war America there

was still a great deal of fear and anxiety created because of the Cold

War with the Soviet Union. McCarthyism, the Red Scare, and the

Rosenberg spy case led many Americans to assume nuclear war was

coming and they must prepare for it.