From World War to Cold From World War to Cold WarWar

Postwar Economic Postwar Economic ConcernsConcerns

• High UnemploymentHigh Unemployment– New demographics in the work force--Women, African New demographics in the work force--Women, African

Americans & Mexican laborers;Americans & Mexican laborers;– Return of servicemen, seeking old & new opportunities.Return of servicemen, seeking old & new opportunities.

• High InflationHigh Inflation– Pent up demand following hardships of Depression & Pent up demand following hardships of Depression &

sacrifice of World War II;sacrifice of World War II;– Expansion of national income;Expansion of national income;– Production slow to shift to consumer goods.Production slow to shift to consumer goods.

• Servicemen’s Readjustment Act (1944), propaganda, Servicemen’s Readjustment Act (1944), propaganda, & Operation Wetback (1954) decreased the workforce & Operation Wetback (1954) decreased the workforce & unemployment.& unemployment.

Rise of the “Affluent Rise of the “Affluent Society”Society”

• Social & Cultural Demographic trends are also Social & Cultural Demographic trends are also economic trends.economic trends.

• Rise of Consumerism--Greater disposable income Rise of Consumerism--Greater disposable income leads to purchases of new consumer goods.leads to purchases of new consumer goods.

• Movement from Rustbelt to Sunbelt--Represented Movement from Rustbelt to Sunbelt--Represented economic shifts, rise of defense & technology economic shifts, rise of defense & technology industries.industries.

• Suburbanization--Culmination of all changes.Suburbanization--Culmination of all changes.– Construction as the backbone of the economy;Construction as the backbone of the economy;– New types of industries, occupationsNew types of industries, occupations– Gave rise to a new car culture & eventual creation of Gave rise to a new car culture & eventual creation of

interstate highway system.interstate highway system.

Domestic ContainmentDomestic Containment• Economic & Social stability based on re-Economic & Social stability based on re-

defining or re-establishing the role of defining or re-establishing the role of women in societywomen in society

• Return of the Cult of DomesticityReturn of the Cult of Domesticity– New technologies in the home made it appear New technologies in the home made it appear

that housework was easier, even glamorous;that housework was easier, even glamorous;– Baby Boom meant motherhood defined Baby Boom meant motherhood defined

women’s lives;women’s lives;– New problems created as well as “experts” to New problems created as well as “experts” to

solve them meant that women always had solve them meant that women always had room to improve, ie. Dr, Benjamin Spock & room to improve, ie. Dr, Benjamin Spock & baby care.baby care.

Economic Core of Foreign Economic Core of Foreign PolicyPolicy

• Bretton Woods Conference (1944)Bretton Woods Conference (1944)– Creation of World Bank & International Monetary Fund;Creation of World Bank & International Monetary Fund;– To provide funds to war-torn & underdeveloped regions.To provide funds to war-torn & underdeveloped regions.

• Marshall PlanMarshall Plan– US-sponsored plan for European economic recovery;US-sponsored plan for European economic recovery;– Allocated $12. Billion, intended to re-establish Europe as Allocated $12. Billion, intended to re-establish Europe as

consumers of American goods;consumers of American goods;– Not part of Marshall Plan, Japan receives direct assistance;Not part of Marshall Plan, Japan receives direct assistance;– Considered too expensive until fall of Czechoslovakia.Considered too expensive until fall of Czechoslovakia.

• Berlin blockade a test of economic & strategic Berlin blockade a test of economic & strategic policies.policies.

Yalta & Spheres of Yalta & Spheres of InfluenceInfluence

• Soviets break promise to allow democratic electionsSoviets break promise to allow democratic elections– Maintained control of PolandMaintained control of Poland– Sought Eastern Europe as Buffer Zone, “Iron Sought Eastern Europe as Buffer Zone, “Iron

Curtain.”Curtain.”• Partitioning of Korea & VietnamPartitioning of Korea & Vietnam• Partitioning of GermanyPartitioning of Germany

– Soviets sought resources of East Germany, Soviets sought resources of East Germany, wished to keep Germany weak;wished to keep Germany weak;

– US, France & England wanted unified West US, France & England wanted unified West Germany to become strong capitalist democracy.Germany to become strong capitalist democracy.

International International OrganizationsOrganizations

• United Nations (San Francisco Conference, 1945)United Nations (San Francisco Conference, 1945)– UN Charter created General Assembly as ultimate policy-UN Charter created General Assembly as ultimate policy-

making body;making body;– Security Council, w/US, USSR, France, China, Britain as Security Council, w/US, USSR, France, China, Britain as

permanent members settled disputes among member permanent members settled disputes among member nations.nations.

• North Atlantic Treaty OrganizationNorth Atlantic Treaty Organization– Collective security organization to counter threat of Soviets;Collective security organization to counter threat of Soviets;– Created in 1949 in response to Berlin Crisis.Created in 1949 in response to Berlin Crisis.

• Warsaw PactWarsaw Pact– Response to NATO, formal organization of Eastern Bloc Response to NATO, formal organization of Eastern Bloc

countries.countries.

Foreign Policy DoctrinesForeign Policy Doctrines• Truman Doctrine--ContainmentTruman Doctrine--Containment

– Supported by the Kennan telegram warning that Supported by the Kennan telegram warning that Communism was inherently expansionist;Communism was inherently expansionist;

– Support of democracies wherever under attack (Turkey, Support of democracies wherever under attack (Turkey, Greece & Israel first major tests);Greece & Israel first major tests);

– Many felt Truman allowed China to fall to Communists.Many felt Truman allowed China to fall to Communists.

• Korea as ultimate test of Truman DoctrineKorea as ultimate test of Truman Doctrine– Used NSC-68 to greatly expand defense spending;Used NSC-68 to greatly expand defense spending;– MacArthur & UN forces drove North Koreans back, but MacArthur & UN forces drove North Koreans back, but

Chinese support turned tide;Chinese support turned tide;– Truman supported Limited War, but MacArthur sought Truman supported Limited War, but MacArthur sought

expansion (Including use of atomic bomb).expansion (Including use of atomic bomb).

Foreign Policy, Foreign Policy, continued...continued...

• Eisenhower promised to visit KoreaEisenhower promised to visit Korea– Threats to use nuclear weapons moved negotiations Threats to use nuclear weapons moved negotiations

forward;forward;– Cease fire signed July 1953 making 38th Parallel boundary, Cease fire signed July 1953 making 38th Parallel boundary,

creating DMZ.creating DMZ.

• Domino Theory, Massive Retaliation & BrinkmanshipDomino Theory, Massive Retaliation & Brinkmanship– Encouraged liberation , even in Eastern Europe;Encouraged liberation , even in Eastern Europe;– Emphasized preemptive strike capabilities of nuclear Emphasized preemptive strike capabilities of nuclear

weapons & willingness to push right up to brink of war;weapons & willingness to push right up to brink of war;– Eisenhower appeared reasonable in comparison to Eisenhower appeared reasonable in comparison to

Secretary of State John Foster Dulles;Secretary of State John Foster Dulles;– Origins of Mutually Assured Destruction & Madman Theory.Origins of Mutually Assured Destruction & Madman Theory.

Easing & Worsening of Easing & Worsening of TensionsTensions

• Death of Stalin & Rise of KrushchevDeath of Stalin & Rise of Krushchev– Offered “Peaceful Co-existence” but promised to “Bury” Offered “Peaceful Co-existence” but promised to “Bury”

American economically;American economically;– Focused more on living conditions in USSR.Focused more on living conditions in USSR.

• Back and ForthBack and Forth– Eisenhower increasingly fearful, promised to seek uses of Eisenhower increasingly fearful, promised to seek uses of

“Atoms for Peace”;“Atoms for Peace”;– Geneva Summit, suspended atmospheric testing in 1958;Geneva Summit, suspended atmospheric testing in 1958;– Soviets crushed Hungarian Uprising;Soviets crushed Hungarian Uprising;– Berlin ultimatum, Kitchen Debate, Krushchev’s US visit;Berlin ultimatum, Kitchen Debate, Krushchev’s US visit;– US caught spying using U-2 planes.US caught spying using U-2 planes.