Post WWIIPost WWIIThe Two SuperpowersThe Two Superpowers

Changes in Europe post 19Changes in Europe post 194545

What’s happening?What’s happening?

Europe lay in ruins (physically, Europe lay in ruins (physically, economically)economically)

Japan destitute, territory occupiedJapan destitute, territory occupied China about to enter civil warChina about to enter civil war India struggling for independence from India struggling for independence from

BritainBritain African and South East Asian countries African and South East Asian countries

suffering from neo-colonialismsuffering from neo-colonialism Latin American countries under military Latin American countries under military

dictatorshipsdictatorships

1945- Why US and USSR?1945- Why US and USSR?

USUS Relatively unharmed Relatively unharmed

from war (physically from war (physically isolated, entered war isolated, entered war later)later)

Produced half world’s Produced half world’s total industrial and total industrial and agricultural outputagricultural output

Vast reserves of oilVast reserves of oil Atomic BombAtomic Bomb Replaced Europe as Replaced Europe as

leader of industrialized leader of industrialized worldworld

USSRUSSR Lost 20 million citizensLost 20 million citizens ““treasure house” of treasure house” of

natural resourcesnatural resources Largest land massLargest land mass Occupied Eastern Occupied Eastern

Europe important Europe important technical expertise technical expertise and industrial and industrial equipmentequipment

Obvious DifferencesObvious Differences

USUS Multi-party Multi-party

democracydemocracy CapitalismCapitalism Free market Free market

economieseconomies TrumanTruman

USSRUSSR Single-party statesSingle-party states TotalitarianismTotalitarianism CommunismCommunism Centralized Centralized

government and government and economyeconomy

StalinStalin

CapitalismCapitalism

““CapitalismCapitalism: economic system in : economic system in which private individuals and which private individuals and business firms carry on the business firms carry on the production and exchange of goods production and exchange of goods and services through a complex and services through a complex network of prices and markets.”network of prices and markets.”

http://encarta.msn.com/http://encarta.msn.com/encyclopedia_761576596/encyclopedia_761576596/Capitalism.htmlCapitalism.html

CommunismCommunism

““Communism:Communism: a theory and system a theory and system of social and political organization …of social and political organization …sought to overthrow capitalism sought to overthrow capitalism through a workers’ revolution and through a workers’ revolution and establish a system in which property establish a system in which property is owned by the community as a is owned by the community as a whole rather than by individuals. “whole rather than by individuals. “

http://encarta.msn.com/http://encarta.msn.com/encyclopedia_761572241/encyclopedia_761572241/communism.htmlcommunism.html

Communism or Capitalism?Communism or Capitalism?

Activity:Activity:– For the following statements, determine For the following statements, determine

if the statement is associated with if the statement is associated with communism or capitalismcommunism or capitalism

Statements:Statements:

““No private person should be allowed No private person should be allowed to profit from the work from other to profit from the work from other citizens”citizens” VERSUSVERSUS

““Any person should be free to start a Any person should be free to start a business and employ people”business and employ people”

““Opportunity for all”Opportunity for all” VERSUSVERSUS ““Fairness and equality for all”Fairness and equality for all”

““Any profit he or she makes is Any profit he or she makes is reward for hard work.”reward for hard work.” VERSUSVERSUS

““All profits, instead of going into the All profits, instead of going into the pockets of one owner or even pockets of one owner or even shareholders, goes to the state- shareholders, goes to the state- everyone benefits.”everyone benefits.”

““Average standard of living higher, Average standard of living higher, but a wide spread between rich and but a wide spread between rich and poor.” poor.” VERSUSVERSUS

““Lower average standard of living, Lower average standard of living, but (in theory) everyone is equal.”but (in theory) everyone is equal.”

““A free economy.” VERSUSA free economy.” VERSUS ““a controlled economy”a controlled economy”

““Only one party of government- no Only one party of government- no need for anymore.”need for anymore.” VERSUSVERSUS

““Choice of many parties for Choice of many parties for government, chosen by the people.”government, chosen by the people.”

Post WWIIPost WWII

March 1946- former British Prime March 1946- former British Prime Minister Churchill’s “Iron Curtain” Minister Churchill’s “Iron Curtain” speechspeech– Recognized threat of Soviet expansion Recognized threat of Soviet expansion

into central Europeinto central Europe– Wanted to stop this from happeningWanted to stop this from happening– USSR maintained forces in Hungary, USSR maintained forces in Hungary,

Bulgaria, CzechoslovakiaBulgaria, Czechoslovakia

American ReactionAmerican Reaction

March 1947: Truman DoctrineMarch 1947: Truman Doctrine USA would intervene “to support free USA would intervene “to support free

peoples who are resisting attempted peoples who are resisting attempted subjugation by armed minorities or subjugation by armed minorities or by outside pressures”by outside pressures”

Truman would use $400 million in aid Truman would use $400 million in aid to assist governments in Greece and to assist governments in Greece and TurkeyTurkey– Policy of containmentPolicy of containment

American ReactionAmerican Reaction

Marshall Plan (1947-1951)- money Marshall Plan (1947-1951)- money and aid to help rebuild war torn and aid to help rebuild war torn Europe. Refused by Soviets in July Europe. Refused by Soviets in July 19481948