Chapter 36 - The Cold War Begins

I. Postwar Economic Anxieties

1. The Americans cheered the end of World War II in 1945, but many
   worried that with the war over, the U.S. would sink back into another
   Great Depression.
   • Upon war’s end, inflation shot up with the release of price
     controls while the gross national product sank, and labor strikes swept
     the nation.
2. To get even with labor, Congress passed the Taft-Hartley Act, which
   outlawed “closed” shops (closed to non-union members), made
   unions liable for damages that resulted from jurisdictional disputes
   among themselves, and required that union leaders take non-communist
   oaths. Opposite of the Wagner Act of the New Deal, this new act was a
   strike against labor unions.
3. Labor tried to organize in the South and West with “Operation Dixie,” but this proved frustrating and unsuccessful.
4. To forestall an economic downturn, the Democratic administration
   sold war factories and other government installations to private
   businesses cheaply. Congress passed the Employment Act of 1946, which
   made it government policy to “promote maximum employment,
   production, and purchasing power,” and created the Council of
   Economic Advisors to provide the president with data to make that
   policy a reality.
   • It also passed the Servicemen’s Readjustment Act of 1944,
     better known as the GI Bill of Rights, which allowed all servicemen to
     have free college education once they returned from the war.

II. The Long Economic Boom, 1950-1970

1. Then, in the late 1940s and into the 1960s, the economy began to
   boom tremendously, and folks who had felt the sting of the Great
   Depression now wanted to bathe in the new prosperity.
   • The middle class more than doubled while people now wanted two cars
     in every garage; over 90% of American families owned a television.
2. Women also reaped the benefits of the postwar economy, growing in
   the American work force while giving up their former roles as
   housewives.
3. Even though this new affluence did not touch everyone, it did touch many.

III. The Roots of Postwar Prosperity

1. Postwar prosperity was fueled by several factors, including the war
   itself that forced America to produce more than it’d ever
   imagined.
2. However, much of the prosperity of the 50s and 60s rested on colossal military projects.
   • Massive appropriations for the Korean War, defense spending,
     industries like aerospace, plastics, and electronics, and research and
     development all were such projects.
   • R and D, research and development, became an entirely new industry.
3. Cheap energy paralleled the popularity of automobiles, and spidery
   grids of electrical cables carried the power of oil, gas, coal, and
   falling water into homes and factories alike.
4. Workers upped their productivity tremendously, as did farmers, due
   to new technology in fertilizers, etc. In fact, the farming population
   shrank while production soared.

IV. The Smiling Sunbelt

1. With so many people on the move, families were being strained.
   Combined with the baby boom, this explained the success of Dr. Benjamin
   Spock’s The Common Sense Book of Baby and Child Care.
2. Immigration also led to the growth of a fifteen-state region in the
   southern half of the U.S. known as the Sunbelt, which dramatically
   increased in population.
   • In fact, in the 1950s, California overtook New York as the most populous state.
3. Immigrants came to the Sunbelt for more opportunities, such as in
   California’s electronics industry and the aerospace complexes of
   Texas and Florida.
   • Federal dollars poured into the Sunbelt (some $125 million), and
     political power grew there as well, as ever since 1964, every U.S.
     president has come from that region.
   • Sunbelters were redrawing the political map, taking the economic and political power out of the North and Northeast.

V. The Rush to the Suburbs

1. Whites in cities fled to the suburbs, encouraged by federal
   agencies such as the Federal Housing Authority and the Veteran’s
   Administration, whose loan guarantees made it cheaper to live in the
   suburbs than in cramped city apartments
   • By 1960, one out of ever four Americans lived in the suburbs.
2. Innovators like the Levitt brothers, with their monotonous but
   cheap housing plans, built thousands of houses in projects like
   Levittown, and the “White flight” left the cities full of
   the poor and the African-Americans.
   • Federal agencies aggravated this by often refusing to make loans to
     Blacks due to the “risk factor” involved with this.

VI. The Postwar Baby Boom

1. After the war, many soldiers returned to their sweethearts and
   married them, then had babies, creating a “Baby Boom” that
   would be felt for generations.
2. As the children grew up collectively, they put strains on
   respective markets, such as manufacturers of baby products in the 1940s
   and 50s, teenage clothing designers in the 60s, and the job market in
   the 70s and 80s.
3. By around 2020, they will place enormous strains on the Social Security system.

VII. Truman: the “Gutty” Man from Missouri

1. Presiding after World War II was Harry S. Truman, who had come to
   power after Franklin Roosevelt had died from a massive brain
   hemorrhage.
   • The first president in a long time without a college education,
     Truman at first approached his burdens with humility, but he gradually
     evolved into a confident, cocky politician.
   • His cabinet was made up of the old “Missouri gang,”
     which was composed of Truman’s friends from when he was a senator
     in Missouri.
   • Often, Truman would stick to a wrong decision just to prove his decisiveness and power of command.
2. However, even if he was small on the small things, he was big on
   the big things, taking responsibility very seriously and working very
   hard.

VIII. Yalta: Bargain or Betrayal?

1. A final conference of the Big Three had taken place at Yalta in
   February 1945, where Soviet leader Joseph Stalin pledged that Poland
   should have a representative government with free elections, as would
   Bulgaria and Romania. But, Stalin broke those promises.
2. At Yalta, the Soviet Union had agreed to attack Japan three months
   after the fall of Germany, but by the time the Soviets entered the
   Pacific war, the U.S. was about to win anyway, and now, it seemed that
   the U.S.S.R. had entered for the sake of taking spoils.
   • The Soviet Union was also granted control of the Manchurian railroads and received special privileges to Dairen and Port Arthur.
3. Critics of FDR charged that he’d sold China’s Chiang
   Kai-shek down the river, while supporters claimed that the Soviets
   could have taken more of China had they wished, and that the Yalta
   agreements had actually limited the Soviet Union.

IX. The United States and the Soviet Union

1. With the U.S.A. and the U.S.S.R. as the only world superpowers
   after WWII, trouble seemed imminent, for the U.S. had waited until
   1933, to recognize the U.S.S.R.; the U.S. and Britain had delayed to
   open up a second front during World War II; the U.S. and Britain had
   frozen the Soviets out of developing nuclear arms; and the U.S. had
   withdrawn its vital lend-lease program from the U.S.S.R. in 1945 and
   spurned Moscow’s plea for a $6 billion reconstructive loan while
   approving a similar $3.75 billion loan to Berlin.
2. Stalin wanted a protective sphere around western Russian, for twice
   earlier in the century Russia had been attacked from that direction,
   and that meant taking nations like Poland under its control.
3. Even though both the U.S.A. and the U.S.S.R. were recent newcomers
   to the world stage, they were very advanced and had been isolationist
   before the 20th century, now they found themselves in a political
   stare-down that would turn into the Cold War and last for four and a
   half decades.

X. Shaping the Postwar World

1. However, the U.S. did manage to establish structures that were part of FDR’s open world.
   • At a meeting at Bretton Woods, New Hampshire, in 1944, the Western
     Allies established the International Monetary Fund (IMF) to encourage
     world trade by regulating the currency exchange rates.
2. The United Nations opened on April 25, 1945.
   • The member nations drew up a charter similar to that of the old
     League of Nations, formed a Security Council to be headed by five
     permanent powers (China, U.S.S.R., Britain, France, and U.S.A.) that
     had total veto powers, and was headquartered in New York City.
   • The Senate overwhelmingly approved the U.N. by a vote of 89 to 2.
3. The U.N. kept peace in Kashmir and other trouble spots, created the
   new Jewish state of Israel, formed such groups as UNESCO (U.N.
   Educational, Scientific, and Cultural Organization), FAO (Food and
   Agricultural Organization), and WHO (World Health Organization),
   bringing benefits to people all over the globe.
4. However, when U.S. delegate Bernard Baruch called in 1946 for a
   U.N. agency free from the great power veto that could investigate all
   nuclear facilities and weapons, the U.S.S.R. rejected the proposal,
   since it didn’t want to give up its veto power and was opposed to
   “capitalist spies” snooping around in the Soviet Union. The
   small window of regulating nuclear weapons was lost.

XI. The Problem of Germany

1. The Nuremberg Trials of 1945-46 severely punished 22 top culprits of the Holocaust.
2. America knew that an economically healthy Germany was indispensable
   to the recovery of all of Europe, but Russia, fearing another
   blitzkrieg, wanted huge reparations from Germany.
3. Germany, like Austria, was divided into four occupational zones
   controlled by the Allied Powers minus China, but as the U.S. began
   proposing the idea of a united Germany, and as the Western nations
   prevented Stalin from getting his reparations from their parts of
   Germany, it became obvious that Germany would remain indefinitely
   divided.
   • In 1948, when the U.S.S.R. choked off all air and railway access to
     Berlin, located deep in East Germany, they thought that such an act
     would starve the Allies out, since Berlin itself was divided into four
     zones as well.
   • However, the Allies organized the massive Berlin Airlift to feed
     the people of Berlin, and in May 1949, the Soviets stopped their
     blockade of Berlin.

XII. The Cold War Congeals

1. When, in 1946, Stalin used his troops to aid a rebel movement in Iran, Truman protested, and the Soviets backed down.
2. Truman soon adopted the “containment policy,” crafted
   by Soviet specialist George F. Kennan, which stated that firm
   containment of Soviet expansion would halt Communist power.
3. On March 12, 1947, Truman requested that the containment policy be
   put into action in what would come to be called the Truman Doctrine:
   $400 million to help Greece and Turkey from falling into communist
   power.
   • So basically, the doctrine said that the U.S. would aid any power
     fighting Communist aggression, an idea later criticized because the
     U.S. would often give money to dictators “fighting
     communism.”
4. In Western Europe, France, Italy, and Germany were still in
   terrible shape, so Truman, with the help of Secretary of State George
   C. Marshall, implemented the Marshall Plan, a miraculous recovery
   effort that had Western Europe up and prosperous in no time.
   • This helped in the forming of the European Community (EC).
   • The plan sent $12.5 billion over four years to 16 cooperating
     nations to aid in recovery, and at first, Congress didn’t want to
     comply, especially when this sum was added to the $2 billion the U.S.
     was already giving to European relief as part of the United Nations
     Relief and Rehabilitation Administration (UNRRA).
   • However, a Soviet-sponsored coup that toppled the government of
     Czechoslovakia finally awakened the Congressmen to their senses, and
     they passed the plan.
5. Truman also recognized Israel on its birthday, May 14, 1948,
   despite heavy Arab opposition and despite the fact that those same
   Arabs controlled the oil supplies in the Middle East.

XIII. America Begins to Rearm

1. The 1947 National Security Act created the Department of Defense,
   which was housed in the Pentagon and headed by a new cabinet position,
   the Secretary of Defense, under which served civilian secretaries of
   the army, navy, and air force.
2. The National Security Act also formed the National Security Council
   (NSC) to advise the president on security matters and the Central
   Intelligence Agency (CIA) to coordinate the government’s foreign
   fact-gathering (spying).
3. The “Voice of America,” a radio broadcast, began
   beaming in 1948, while Congress resurrected the military draft
   (Selective Service System), which redefined many young people’s
   career choices and persuaded them to go to college.
4. In 1948, the U.S. joined Britain, France, Belgium, the Netherlands,
   and Luxembourg to form the North Atlantic Treaty Organization (NATO),
   which considered an attack on one NATO member an attack on all, despite
   the U.S.’s policy of traditionally not involving itself in
   entangling alliances.
   • In response, the U.S.S.R. formed the Warsaw Pact, its own alliance system.
   • NATO’s membership grew to fourteen with the 1952 admissions
     of Greece and Turkey, and then to 15 when West Germany joined in 1955.

XIV. Reconstruction and Revolution in Asia

1. General Douglas MacArthur headed reconstruction in Japan and tried
   the top Japanese war criminals. He dictated a constitution that was
   adopted in 1946, and democratized Japan.
2. However, in China, the communist forces, led by Mao Zedong,
   defeated the nationalist forces, led by Chiang Kai-shek, who then fled
   to the island of Formosa (Taiwan) in 1949.
   • With this defeat, one-quarter of the world population (500,000,000 people) plunged under the Communist flag.
   • Critics of Truman assailed that he did not support the nationalists
     enough, but Chiang Kai-shek never had the support of the people to
     begin with.
3. Then, in September of 1949, Truman announced that the Soviets had
   exploded their first atomic bomb—three years before experts
   thought it was possible, thus eliminating the U.S. monopoly on nuclear
   weapons.
   • The U.S. exploded the hydrogen bomb in 1952, and the Soviets
     followed suit a year later; thus began the dangerous arms race of the
     Cold War.

XV. Ferreting Out Alleged Communists

1. An anti-red chase was in full force in the U.S. with the formation
   of the Loyalty Review Board, which investigated more than 3 million
   federal employees.
   • The attorney general also drew up a list of 90 organizations that
     were potentially not loyal to the U.S., and none was given the
     opportunity to defend itself.
2. In 1949, 11 communists were brought to a New York jury for
   violating the Smith Act of 1940, which had been the first peacetime
   anti-sedition law since 1798.
   • They were convicted, sent to prison, and their conviction was upheld by the 1951 case Dennis v. United States.
3. The House of Representatives had, in 1938 established the Committee
   on Un-American Activities (“HUAC”) to investigate
   “subversion,” and in 1948, committee member Richard M.
   Nixon prosecuted Alger Hiss.
4. In February 1950, Joseph R. McCarthy burst upon the scene, charging
   that there were scores of unknown communists in the State Department.
   • He couldn’t prove it, and many American began to fear that
     this red chase was going too far; after all, how could there be freedom
     of speech if saying communist ideas got one arrested?
   • Truman vetoed the McCarran Internal Security Bill, which
     would’ve let the president arrest and detain suspicious people
     during an “internal security emergency.”
5. The Soviet success of developing nuclear bombs so easily was
   probably due to spies, and in 1951, Julius and Ethel Rosenberg were
   brought to trial, convicted, and executed of selling nuclear secrets to
   the Russians.
   • Their sensational trial, electrocution, and sympathy for their two children began to sober America zeal in red hunting.

XVI. Democratic Divisions in 1948

1. Republicans won control of the House in 1946 and then nominated
   Thomas E. Dewey to the 1948 ticket, while Democrats were forced to
   choose Truman again when war-hero Dwight D. Eisenhower refused to be
   chosen.
   • Truman’s nomination split the Democratic Party, as Southern
     Democrats (“Dixiecrats”) nominated Governor J. Strom
     Thurmond of South Carolina on a State’s Rights Party ticket.
   • Former vice president Henry A. Wallace also threw his hat into the ring, getting nominated by the new Progressive Party.
2. With the Democrats totally disorganized, Dewey seemed destined for
   a super-easy victory, and on election night, the Chicago Tribune even
   ran an early edition wrongly proclaiming “DEWEY DEFEATS
   TRUMAN,” but Truman shockingly won, getting 303 electoral votes
   to Dewey’s 189. And to make things better, the Democrats won
   control of Congress again.
   • Truman received critical support from farmers, workers, and blacks.
3. Truman then called for a new program called “Point
   Four,” which called for financial support of poor, underdeveloped
   lands in hopes of keeping underprivileged peoples from turning
   communist.
4. At home, Truman outlined a sweeping “Fair Deal”
   program, which called for improved housing, full employment, a higher
   minimum wage, better farm price supports, a new Tennessee Valley
   Authority, and an extension of Social Security.
   • However, the only successes came in raising the minimum wage,
     providing for public housing in the Housing Act of 1949, and extending
     old-age insurance to more beneficiaries with the Social Security Act of
     1950.

XVII. The Korean Volcano Erupts (1950)

1. When Russian and American forces withdrew from Korea, they had left
   the place full of weapons and with rival regimes (communist North and
   democratic South).
2. Then, on June 25, 1950, North Korean forces suddenly invaded South
   Korean, taking the South Koreans by surprise and pushing them
   dangerously south toward Pusan.
   • Truman sprang to action, remembering that the League of Nations had
     failed from inactivity, and ordered U.S. military spending to be
     quadrupled, as desired by the National Security Council Memorandum
     Number 68, or NSC-68.
3. Truman also used a Soviet absence from the U.N. to label North
   Korea as an aggressor and send U.N. troops to fight against the
   aggressors.
   • He also ordered General MacArthur’s Japan-based troops to Korea.

XVIII. The Military Seesaw in Korea

1. General MacArthur landed a brilliant invasion behind enemy forces
   at Inchon on September 15, 1950, and drove the North Koreans back
   across the 38th parallel, towards China and the Yalu River.
   • An overconfident MacArthur boasted that he’d “have the
     boys home by Christmas,” but in November 1950, Chinese
     “volunteers” flooded across the border and pushed the South
     Koreans back to the 38th parallel.
2. MacArthur, humiliated, wanted to blockade China and bomb Manchuria,
   but Truman didn’t want to enlarge the war beyond necessity, but
   when the angry general began to publicly criticize President Truman and
   spoke of using atomic weapons, Harry had no choice but to remove him
   from command on grounds of insubordination.
   • MacArthur returned to cheers while Truman was scorned as a
     “pig,” an “imbecile,” an appeaser to communist
     Russia and China, and a “Judas.”
   • In July 1951, truce discussions began but immediately snagged over the issue of prisoner exchange.
   • Talks dragged on for two more years as men continued to die.