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1/23/24 - Post WWII Economy (Notes) Economic recession after WWI → soldiers came back and had no jobs Republicans took control of Congress after the w
1/23/24 - Post WWII Economy (Notes)
Economic recession after WWI → soldiers came back and had no jobs
Republicans took control of Congress after the war and took away price controls
created inflation
Reasons for the economic boom:
GI Bill
more people were going to college
people getting better educations
cheap energy
US drills and gets oil from WWII
WWII changed products → now have plastics, aerodynamics, etc
baby boom
consumer spending on baby products
trade
WWII is no longer agrarian after WWII
farming is not the dominant force in the economy anymore
Employment Act
government's goal to achieve maximum employment
not the same as full employment (everyone willingly or forcibly is working)
maximum employment: every job that is needed is filled
GI Bill
provided funding so veterans and soldiers coming back from war would receive education
also provided funding for veterans and soldiers to get loans for homes
Sun Belt
people moving to the South from the North
cheaper, less taxes, less inflation
wanted warmer weather
moved to suburbs
economic opportunitiy
Frost Belt - North
Rust Belt - Pennsylvania, Ohio, Michigan, etc
people brought money and their vote to the South
John F Kennedy from Massachusetts
he and Obama were the only presidents elected from the Frost Belt
Lyndon Johnson from Texas
Nixon is from California
Carter is from Georgia
Suburbs Levitt
first suburb created by the Levitt brothers
Levitt Town, Long Island, NY
everyone wanted a house with a garage and a white picket fence
cars, public transportation, and highways → people don’t have to live in cities and can travel to work
White Flight
2nd-3rd generation Europeans leave cities and take money, skills and families to suburbs
African Americans and new immigrants are left in cities
they did not have same economic resources as whites → cannot sustain city
1970: urban decay
Baby Boom
soldiers came back from war and wanted to have families, make babies
from 1945-1960, 50 million babies were born in America
led to the name “Boomers” for this generation
Massive economic impact
first generation kids will have disposable income
more consumer spending
factories have to make more baby product
used advertising with kids to influence parents
Baby Boomer Children → drove culture, fashion, trends, economy
Millennials have passed the baby boomers in size
Harry Truman
very honest man
last American president who did not have a college education
every president after would have a college degree
self-made man from Misouri
all of his success came late in life
Democratic Political Machine in Misouri discovered Truman
as a senator, he investigated the wartime industries
“The Buck Stops Here” → responsibility lies with him
relates to the people
becomes President when FDR dies
Inflation and Strikes – Mines and Railroads
Truman forced the unions back to work
was not against the workers but bad for the economy
told railroad workers to go back to work or they would be drafted
Taft-Hartley Act (1947)
anti-union act
banned closed shop, could not be forced to join a union
states were allowed to set up the Right to Work Laws
unions had to pay for any damages made during the strike
unions had to sign anti-communist pledge
unions had to wait 60 days until they could strike so the government would have time to step in
Bill Clinton evoked this
attempt by Republicans to take away union power
Republicans tend to be anti-union, Democrats are for unions
Taft-Hartley Act gave the president the power to invoke an 80-day cooling off period before a strike could be called that would impact the safety of the nation
Civil Rights
Truman wanted to do a lot for civil rights like FDR but was stopped by Southern Democrats in Congress
Truman was a Democrat but wanted to change things
Truman was anti-segregation, anti-discrimination, pro-civil rights
Committee on Civil Rights
Ended discrimination in the Federal Government
Desegregation of military
Korean War was the first war with a desegregated military
Republicans Take Congress
took away price controls
pass 22nd Amendment
said a president could only serve two terms in office
term limits
Election of 1948
Harry Truman runs for his own term
election campaign did not go well
no one showed up to his announcement
on the train, the conductor made him pay, and Truman had to ask for money
conductor was a railroad worker, Truman threatened to draft railroad workers to war
Truman calls an emergency congress meeting
pushed acts he knows that they will not approve
says that the Republicans were not doing anything at all
wins the election, highly unexpected
Republicans - Thomas E. Dewey
from New York
Democrats - Truman
the party splits, Southern Democrats form their own party
Strom Thurmond - Dixiecrats, States Rights Party
southern democratic party
Wallace - Progressive Party
Truman - Fair Deal
TR - Square Deal, New Nationalism
Wilson - New Freedom
FDR - New Deal
tax increase, national health insurance, expansion of Social Security, repealed Taft-Hartley Act, raised minimum wage
blueprint for Lyndon Johnson’s plans
1/24/24 - Truman
Yalta and Potsdam conferences are considered the beginning of the Cold War
conflict in Europe would arise between Western democracies and Soviet communism
Creation of UN and World Bank
United Nations (UN):
50 countries gatherer at UN Conference on International Organization in San Fransico, CA from April 25-June 26, 1945
only countries that had declared war on Germany and Japan and subscribed to the United Nations Declaration were invited
drafted UN Charter, which created the UN, hoping it would prevent another world war
Poland did not send a representative to the conference so they signed it later
concept of international peace and security in the UN Charter developed from ideas expressed in the Atlantic Charter
“Congress of the World,” not necessarily an alliance
The Security Council: US, UK, France, Russia, China
have the power to VETO, only countries that can do this
these countries run the show
Obama Administration - first time US did not VETO that would adversely affect Israel
four months after SF Conference ended, UN officially began on October 24, 1945 after its Charter was ratified by China, France, Soviet Union, UK, US, and other countries
World Bank
July 1, 1944 → delegates from 44 nations met at the Mount Washington Hotel in Bretton Woods, New Hampshire for the conference
Bretton Woods Conference:
purpose was to agree on a system of economic order and international cooperation that would help the country recover from the devastation of the war
conference attendees produced the Articles of Agreement for the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF)
by July 22, 1944, the Final Act of the UN Monetary and Finacial Conference (included IBRD and IMF) was signed
George Kennan and the “Containment Policy” (Document)
in 1946, Churchill warned that tyranny was once again on the march in Europe (Soviet communism)
Stalin’s Red Army was projecting his authority throughout Europe
Soviet Union’s Sphere of Influence: Bulgaria, Romania, Hungary, Czechoslovakia, Poland, and the Eastern half of Germany
Stalin’s buffer zone, assurance against future invasions
Stalin warned his people that war with the West was inevitable
George Kennan:
spent years observing the Kremlin as an American diplomat stationed in Moscow
Long Telegram: dispatch to Washington from Kennan
said Stalin needed to present the outside world as hostile and menacing to justify his own bloody regime
a year later, Kennan proposed a long-term containment of Russian expansive tendencies
the idea of containment formed the basis of American Cold War policy for the next 50 years
Containment Policy
contain the spread of communism, becomes America’s foreign policy during the war
1947, British announced they could no longer afford to support the pro-western government of the Mediterranean in their fight against communism
US needed to step in to prevent the spread of communism
March 12, 1947 → Truman went to Congress to request aid for Greece and Turkey
wanted to support countries that embraced democracy and were fighting against communism
Secretary of State George Marshall traveled to Europe to witness conditions left behind after the war and feared that these countries would fall to communism without help
proposed a program of massive economic assistance known as the Marshall Plan
Marshall Plan
only the Soviet Union and its satellite refused to attend the meeting to draft the plan
“an investment in peace”
costed $17 billion
communist riots in Czechoslovakia led to the overthrow of the democratically elected government
Congress then approved funding for the Marshall Plan
success in Europe and established the US as the world’s dominant economic power
first major confrontation of the Cold War
Berlin had become a microcosm of the Cold War struggle for all of Europe
Soviet Prime Minister emphasized that “what happens to Berlin, happens to Germany … and what happens to Germany, happens to Europe”
Eastern Germany was under the control of the Soviets
Western Germany began to thrive and introduced a new currency: Deutsche Mark
Stalin condemned the move as American economic imperialism
June 24, 1948, Stalin ordered all land access into the city of West Berlin to be sealed off
began the Berlin Blockade
roads and railways were shut down, and shipments of goods languished at border crossings
power to the city was also shut off
Stalin wanted to force the Western Allies out of Berlin and starve its people into submission
Truman said the US was going to stay
Berlin Airlift
US and Great Britain orchestrated the Berlin Airlift to resupply Western Berlin
planes carried food, coal, and medical supplies to the city
2 million tons of cargo were delivered during the 15-month operation
May 1949 → Soviets relented and lifted the blockade
Democratic West Germany
Communist East Germany
North Atlantic Treaty Organization (NATO)
US and Canada joined with ten other European countries in 1949 to form a military alliance (NATO)
West Germany joined the alliance in 1955
Soviet Union and its satellites responded by forming a competing alliance known as the Warsaw Pact
1948 → Truman Doctrine, Marshall Plan, and Berlin Airlift frustrated Soviet plans to dominate Europe
August 1949 → Soviets successfully tested their own atomic bomb
Mao Zedong, a Chinese communist revolutionary, prevailed in a decade-long civil war against the Chinese Nationalist government
500 million Chinese fell under communist rule
Mao supported emerging governments in Cambodia, Laos, Vietnam, Malaya, and Korea
Truman Doctrine (Notes)
March 12, 1947 → Truman gave a speech that would mark the beginning of the Cold War (1947-1989)
Democracy v. Communism
Following WW2, tensions rose between the West and USSR
Recovering European countries were in political crisis, with large factions within them supporting their nation’s communist political parties
Soviet Union supported these communist factions
US and wartime allies wanted countries to set up governments committed to free market economies and democratic governments
1946 - Churchill gave the Iron Curtain Speech in Missouri
He condemned the Soviet Union’s oppressive power in the East
Crisis in the Mediterranean
The Greek Civil War (1946-1949)
Greece was engaged in a civil war between a nationalist army (supported by the US) and a communist militia fighting for a new democratic government
US feared the Soviets would step in to support the communist war effort in Greece
USSR had been trying to expand its influence in other areas of the Meditterain, putting a lot of pressure on Turkey
Soviets wanted to drill for oil in Iran, but they had to use Turkish waters to get the oil out of Iran
Soviet government pressured Iran into granting them oil concessions right near the Turkish border
also tried to get Turkey to grant them a military base and transit rights through the Turkish Straights
US didn’t want Soviets controlling Turkish Straights → US and allies seek anticommunist Turkey
US thought the Soviet Union was supporting communists in Greece and feared the possible domino effect of communism on Turkey (Greece and Turkey are next to each other
March 12, 1947 → Truman describes the communist threat in the Mediterranean
Truman’s Speech
Called for immediate military and economic aid to Turkey and Greece ($400 million); implied a warning against Soviets
Republican Senator Arthur Vandenberg urged Truman to overstate crisis and scare Americans to convince them to support the fight against communism
marked a definitive move against the Soviet Union and was a shift in the US foreign policy
1st time US became financially involved in countries outside the Western Hemisphere
Legacy and Impact
Truman Doctrine served as a prelude to the Marshall Plan
Doctrine emphasized a free-market economy and the defense of the Western world against communism
also established an interventionist trend, setting the precedent for American involvement in the Korean and Vietnam wars
Marshall Plan (Notes)
WW2 ended → Europe was in ruins
US set aside $13 billion for the European Recovery Plan, also known as the Marshall Plan
Marshall Plan: restore the European economy by giving foreign aid to countries that needed it
Geroge C Marshall came up with the plan
served as the Army’s Cheif of Staff during the war and oversaw the US military strategy
retired from the Army at the end of the war
Truman appointed Marshall Secretary of State in early 1947
April 1948-December 1951: US shipped food, fuel, machinery, and money to European countries
Good Deed Foreign Policy
US was using its considerable resources to help war-torn Europe
by investing in the economies of European countries, the US created new markets for its exports
US also wanted to isolate the Soviet Union to keep it from expanding its sphere of influence beyond Eastern Europe
Countries that did not receive aid: USSR, Poland, Czechoslovakia
West European industry recovered, and Soviet communism was contained in East
1953 - Marshall was awarded the Nobel Peace Prize
Berlin Airlift
end of WW2, Germany and Berlin were divided into occupational zones
Soviets controlled eastern Germany where Berlin was located
US, UK, and France controlled western portions of Germany
Allies also had control of western Berlin
June 24, 1948 → Soviet forces blockaded rail, road, and water access to Allied-controlled areas of Berlin
US and UK responded by airlifting food and fuel to Berlin from Allied airbases in western Germany
May 12, 1949 → crisis ended when Soviet forced lifted the blockage
problem of what to do about Germany was never successfully addressed at the Potsdam Conference
in 1947, US and UK unified their respective zones and formed Bizonia
caused tensions between East and West to escalate
in early 1948, US, UK, and France secretly began planning the creation of a new German state made up of the Westen Allies’ occupation zone
wanted West Germany to become its own independent state with a democratic capitalist government
Soviets discovered these plans in March and withdrew from the Allied Control Council
the council had been meeting regularly since the end of the war to coordinate occupation policy between zones
in June 1948, US and British policymakers introduced the new Deutschmark to Bizonia and West Berlin without informing the Soviets
purpose of the currency reform was to wrest economic control of the city from the Soviets, enable the introduction of the Marshall Plan aid, and curb the city’s black market
Soviet authorities responded with similar moves in their zones and issued their own currency, the Ostmark
also blocked all major road, rail, and canal links to West Berlin
starved West Berlin of electricity and a steady supply of essential food and coal
US and UK had to consider their options before responding
Red Army was significantly much larger
June 13, 1948 → General Lucius Clay reported to Washington that Berlin was essential to Germany in Europe and had practically become “a symbol of the American intent,” even if it was unpractical to stay there and defend it from the Soviets
Truman administration agreed
only connections to Berlin left to the Western Allies were air corridors from West Germany used to supply Berlin by air
if Soviets opposed the airlift with force, this would be a violation of an explicit agreement
US launched Operation Vittles on June 26, 1948, followed two days later by Operation Plainfare launched by the UK (these were the airlift operations)
Candy Bomber, “Uncle Wiggly Wings” → Gail S. Halvorsen
Dropped chocolate, candies, and gum to children in Berlin
September 1948 → the Socialist Unity Party of Germany (SED) marched on the Berlin City Council and forced it to adjourn
300,000 West Berliners gathered at the Reichstag to show their opposition to Soviet domination fearing that the Western Allies might halt the airlift and cede West Berlin to the Soviets
the turnout convinced the West to keep the airlift and the Deutschmark
by spring 1949, the Berlin Airlift proved successful and the Allied counter-blockade on East Germany was causing severe shortages
May 11, 1949 → Moscow lifted the blockade of West Berlin
the Western Allies created the North Atlantic Treaty Organization (NATO)
two weeks after the end of the blockade, the state of West Germany was established, soon followed by the creation of East Germany
NATO vs. Warsaw Pact
NATO → alliance against communism (moral commitment, not obligation)
April 4, 1949 → 12 founding members signed the North Atlantic Treaty, also known as the Washington Treaty, in Washington DC
officially created the North Atlantic Treaty Organization (NATO)
North Atlantic Treaty:
reaffirms the inherent right of independent states to individual or collective defense
commits members to protect each other and sets a spirit of solidarity within the Alliance
only contains 14 articles
Article 5: collective defense means that an attack against one Ally is considered as an attack against all Allies
NATO invoked Article 5 for the first and only time in history after 9/11 terrorist attack against US
Political Context
hostilities between Soviet and Western powers since 1917
“East-West” divide fuelled by conflicting interests and political ideologies
concern among Western European countries that Moscow would impose its ideology and authority across Europe as the Soviet Union spread to several Eastern European countries
January 1948 → British Foreign Secretary Ernest Bevin spoke of the need for a “treaty of alliance and mutual assistance”
US only agreed to provide military support for Europe if it were united
March 1948 → Belgium, France, Luxembourg, the Netherlands, and the UK signed the Brussels Treaty, creating the Western Union
Vandenberg Resolution: US Senate adopted this resolution that allowed the US to constitutionally participate in a mutual defense system in times of peace
Negotiating and Drafting the Treaty
Brussels Treaty powers plus US and Canada were the core drafting team for the North Atlantic Treaty
Denmark, Iceland, Italy, Norway and Portugal were later invited to the final sessions of negotiations, which began on 8 March 1949
Collective Defense:
US did not want the treaty to draw them into a conflict through treaty obligations
wanted to be able to send aid to attacked countries without having to declare was
European countries wanted to ensure that the United States would come to their aid if one of the signatories came under attack
decided there would be no automatic declaration of war or obligation to commit militarily on the part of member countries; the action to be taken would be up to each individual member country
Soviets created Warsaw Pact in response to NATO
National Security Act of 1947
“An Act To promote the national security by providing
for a Secretary of Defense
for a National Military Establishment
for a Department of the Army
a Department of the Navy
and a Department of the Air Force
and for the coordination of the activities of the National Military Establishment with other departments and agencies of the Government concerned with the national security.”
created the CIA and formally created the branches of the military
created National Security Council
changes war departments to defense departments
Churchill – Iron Curtain Speech
March 5, 1946 - Churchill delivers “The Sinews of Peace” at Westminster College, Fulton, Missouri
Churchill’s post-WWII address
President Truman was present at the speech
Churchill was already concerned about communism during WW2 (Italy through South)
Iron Curtain → dividing Europe in half, communism behind the wall, democracy on the other side
Beginning of Nuclear Arms Race – 1945-1949
arms race: when two or more countries increase the size and quality of military resources to gain military and political superiority over one another
Cold War is largest and most expensive arms race in history
Industrial Revolution → new weaponry and vastly improved warships
late 19th century - France and Russia built up armies to challenge British colonialism
British responded with Royal Navy to control seas
British worked out arms race, but Germany increased its military budget and built large navy to contest Britain’s naval dominance
Britain won Anglo-German Arms Race
Increased tensions between Germany, Britain and european powers
After World War I, many countries showed an interest in arms control
President Woodrow Wilson made it a key point in his famous 1918 Fourteen Points speech, wherein he laid out his vision for postwar peace
At the Washington Naval Conference (1921-1922), the US, Britain and Japan signed a treaty to restrict arms, but in the mid-1930s Japan chose not to renew the agreement.
Treaty of Versailles was violated by Germany when they began to rearm
started the new arms race in Europe (Germany, Britain, France) and in the Pacific (Japan and US) → continued into WW2
US was wary of Soviet Union’s expanding power and influence over Eastern Europe and Soviets resented the US’s geopolitical interferences and arms buildup
US didn’t tell Soviets they planned to drop atomic bomb on Hiroshima
Truman moved fighter planes to Britain to be closer to Russians → threatened nuclear war
US built more atomic weaponry to discourage Soviet communist expansion → Soviets test their own atomic bomb → Cold War nuclear arms race
US responds with hydrogen “superbomb” in 1952
1957 - both countries test first intercontinental ballistic missiles
Cold War Arms Race to Space
Soviet launch the first Sputnik satelite in 1957 → Cold War arms race became Space Race
Eisenhowever streamed federal funds into US space program
US launches first satellite in January 1958 and Space Race continues
Missile Gap
During 1950s, US was convinced Soviets had better missile capability that, if launched, couldn’t be defended against → Missile Gap theory (later disproven by CIA)
Cuban Missile Crisis
1962 → JFK adminstration’s failed attempt to overthorw Cuba’s premier Fidel Castro, and Soviet premier Nikita Khurschchev implemented a secret government to place Soviet warheads in Cuba
US intelligence observed missile bases under construction in Cuba → enforced blockade on Cuba and demanded Soviets demolish bases and remove nuclear weapons
1987 → US and Soviets sign the Intermediate-Range Nuclear Forces Treaty (INF) limit scope and reach of all types of missiles
START 1 treaty (1991) and New START treaty (2011) further reduce both nations’ weapon capabilities
US withdrew from INF in 2019
Communist China (Notes)
The Chinese Revolution of 1949
civil war between the Chinese Communist Party (CCP) and the Nationalist Party, or Kuomintang (KMT)
war broke out immediately after WWII and had been preceded by an on-and-off conflict between the two sides since the 1920s
October 1, 1949 → Chinese Communist leader Mao Zedong declared the creation of the People’s Republic of China (PRC)
creation of PRC also completed the process of government upheaval in China that began by the Chinese Revolution of 1911
the “fall” of mainland China to communism in 1949 led the US to suspend diplomatic ties with the PRC for decades
Chinese Communist Party, founded in 1921, originally existed as a study group working within confines of First United Front with Nationalist Party
Chinese communists joined Nationalist Army in Northern Expedition of 1927-1927 to rid nation of warloads preventing the formation of strong central government
“White Terror” of 1927 - Nationalists turned on Communists (killed them)
After Japan invaded Manchuria (1931), Government of Republic of China (ROC) faced threat of Japanese invasion, communist uprising, and warload insurrections
Nationalist leader, Chiang Kai-Shek, focused on internal threats, not Japan
Group of generals abducted Chiang in 1937 and force him to reconsider cooperation with Communist army
Second United Front was short lived and Nationists focused on containing Communists rather than on Japan
During WW2, support for Communists increased
Undemocratic policies and wartime corruption made ROC government vulnerable to Communist threat
Japanese surrender set stage for resurgence of civil war in China
US flew Nationalist Chinese troops into Japanese-controlled territory and allowed them to accept Japanese surrender
Soviets occupied Manchuria and pulled out when Chinese Communist forces could claim the territory
1945 - Chiang Kai-sheck and Mao Zedong discussed postwar government
Agreed on importance of democracy, unified military and equality for all Chinese political parties
George Marshall tried to broker an agreement but in 1946, 2 sides fought Civil War
1947-1949: Communist victory seemed more likely
US continued to supply military and financial aid to Nationalists
October 1949 - Mao Zedong proclaimed establishment of PRC and Chiang and his forces fled to Taiwan (Formosa) to regroup and plan to retake the mainland
August 1949 - Truman administration published “China White Paper”
Explained past US policy toward China based on principal that only Chinese forces could determine outcome of their civil war
Failed to protect his administration from charges of having “lost” China
Outbreak of Korean War, pitted PRC and US on opposite sides, ended opportunity for accommodation between PRC and US
Truman’s desire to prevent Korean conflict from spreading south led to US policy of protecting Chiang Kai-shek government on Taiwan
Until 1970s, US recognized ROC in Taiwan as China’s true government
China had a lot of poor peasant farmers → poor people favor communism
these people were used to working for the village or community, communism made sense to them
US flew supplies from India to China to help the Nationalists
America was scared when China become communist → helped exacerbate the Red Scare
Americans also blame Truman for fall of China to communism
1969-1970 - Nixon visits Mao
US formally recognizes communist China during President Carter in 1979
Korean War (Notes)
North Korea attacked South Korea June 25, 1950 → Truman had MacArthur command the US forces sent to repel the invasion because US forces are trapped down at Busan
Truman went to the UN to from a resolution for the UN on the side of South Korea → Soviet Union did not veto
The soviet union was boycotting the UN and could not Veto
UN war
President Truman announced on April 11, 1951 that he had dismissed General Douglas MacArthur as commanding general of US forces in Korea
Truman also got the UN
When North Korea attacked South Korea in June 1950, Truman tapped MacArthur to command US forces sent to repel the invasion
In September 1950, he ordered the amphibious assault at Inchon
Operation cut North Korean forces in half and turned tide of war
MacArthur pushed across the 38th parallel into North Korean territory
As US forces drove toward Yalu River and border with China, 300,000 Chinese troops came to North Korea’s defense → military and political calculus changed
US was unwilling to risk wider war with China and perhaps Soviet Union → Truman refused to order attacks on targets in China
Truman’s decision angered MacArthur who wanted to take war to China
MacArthur wrote a letter in late March 1951 to the Republican Speaker of the House criticizing the limited-war strategy
April 11, 1951 → Truman relieves MacArthur of command (risky)
Let go of a nation hero → Americans not happy
reason for firing MacArthur was because of insubordination
MacArthur returned to US and gave address to Congress (millions watched on TV) → declared “in war there can be no substitute for victory”
MacArthur got a huge parade in NYC and was invited to joint session of CongressMost Americans and generals opposed military strategry that MacArthur favored
Wanted nothing to do with war with China with main enemy being Soviets
Lesson of Truman’s dismissal → Presidents can be justified in overruling military advice of even their most decorated generals
MacArthur’s desire to take war to China failed to consider America’s broader interest, public’s appetite for war, and merits of other strategies
1953 → Eisenhower went to Korea to help them establish an armistace that said each side would stay on their side of the 38th parallel
war never formally ended for a while
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