Ch. 36 – The Cold War Begins

1. Ch. 36 – The Cold War Begins

2. Economic Anxieties • Taft-Hartly Act – conservatives ban “closed shops” & institute anti-comminust pledge • Union memberships begin decline in 50’s • To deal with 15 million veterans returning • GI Bill – pays for college for veterans • VA loans for vets toward small businesses

4. Economic Boom 1950-1970 • The world’s envy • Incomes double in the 50’s, then double again in 60’s • By 1973, 40% of world’s wealth in U.S. • Prosperity and mobility – leads to Civil Rights gains • Desegregation of military after WWII by Truman • Middle class doubles • Consumerism, standard of living soars • Jobs open up for women

5. Means of Prosperity • WWII stimulus rebuilt economy • Cheap energy • Increased education & productivity • 1950’s & 60’s prosperity rests on colossal military budgets • Defense spending (Korea) • High-tech races • Scientific research and development for gov’t

6. Geographic Changes • By the 50’s, the family farm is antique • Families highly mobile • Growth of Sunbelt region • CA explodes, takes the rank as most populated by 1963 and holds the title • Wealth & population shift west and south • Dying of iron belt “rust belt”

7. Sunbelt Region

8. Geographic Changes • Baby Boom – huge birth rate increases 1945-1957, then big decline • “white flight” to green suburbs leaves inner cities in NE and Midwest – “black, brown, and broke” • Poverty of south migrates to inner cities & more affluent citizens leave • Spread pattern of segregation

10. Beginning of the Cold War ROOTS: • General mistrust between USSR & US • Both emerge as world super powers after WWII • Yalta Conference – free elections in Poland promised by Stalin not honored • Different political ideologies & goals • Democracy v. communism

11. Postwar Changes under Truman • United Nations – quickly ratified by the U.S. as it had provisions for freedom of action & American Sovereignty • Security Council – (Big 5 – Britain, France, U.S., USSR, and China) • Recognizes Israel – hurts relations with Arabs and later our oil • National Security Act: establishes • National Security Council • Department of Defense • Pentagon • CIA • Resurrected military draft (19-25)

12. Dealing w/Germany • Nuremburg Trials -22 top Nazi officials tried for war crimes • Laws of war & humanity, plotting aggression • 12 hung, 7 prison sentences

13. Germany divided into 4 occupation zones leading to the division of East & West Germany

14. The Iron Curtain Satellite nations (Eastern bloc) – under control of Soviet Union

15. Berlin Airlift • 1948, Soviets decide to blockade Berlin to choke out Allied control • U.S. sends planes in to drop supplies on Berlin for nearly a year • Soviets lift blockade, May 1949 • Official gov’t.s set up in East & West Germany

17. U.S. Foreign Policy Shifts • Containment – Policy is to NOT allow communism to spread • Truman Doctrine, 1947 – U.S. will aid any country trying to resist communism • Loan $400 million to Greece & Turkey • huge, open-ended commitment • world becomes polarized • good/evil campaign

19. Marshall Plan *Communism popularin many W. European nations after WWII. • Marshall Plan, 1948 – provided economic assistance to Europe, offered to soviets but they refuse • 12.5 billion dollars to 16 countries. • Spectacular success – countries booming within a few years = communist movements die out

21. NATO & Warsaw Pact • North Atlantic Treaty Organization (NATO) formed due to communist “threat”, 1949 • Boosts European unity • Warsaw Pact formed by Soviets in response, 1954 *Both are alliances

22. NATO

23. 1st, 2nd, and 3rd World Nations

24. IMF and World Bank • International Monetary Fund, 1944 (Bretton Wood Conference) Purpose to uplift economies worldwide, stabilize exchange rates, and promote trade • World Bank: provides loans to developing countries for capital programs. Stated goal is to reduce poverty, facilitate foreign investments. • GATT: General Agreement on Tariffs and Trade • Reduce tariffs and eliminate trade barriers.