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Ch. 36 – The Cold War Begins. 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

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economic anxieties
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
economic boom 1950 1970
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
means of prosperity
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
geographic changes
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”
geographic changes1
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
beginning of the cold war
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
postw ar c hanges under truman
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)
dealing w germany
Dealing w/Germany
  • Nuremburg Trials -22 top Nazi officials tried for war crimes
    • Laws of war & humanity, plotting aggression
    • 12 hung, 7 prison sentences
the iron curtain
The Iron Curtain

Satellite nations (Eastern bloc) – under control of Soviet Union

berlin airlift
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
u s foreign policy shifts
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
marshall plan
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
nato warsaw pact
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

imf and world bank
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.