Financing the Future:

US manufacturing expanded enormously during WWII, (65%>prewar), in part due to government spending, US needed $14*10^9 in exports to maintain current growth rate, lots of ex-colonies and eastern European countries unwilling to trade, US needed western Europe to be a major trade partner, 44 Allied nations met in NH to establish IMF and World Bank to help rebuild Europe and develop other nations. USSR refused participation due to disliking capitalism and worrying that these programs promoted it, isolated self economically.

The Division of Europe:

Allies violated 1941 Atlantic Charter (self-determination) by dividing up Europe into spheres of influence, USSR took Eastern Europe for security, US worried that USSR wanted all of Europe. USSR+France anti-German reunification.

UN created by WWII Allies to arbitrate member disputes, use force when needed to stop agressors, {USA, GB, USSR, China, France} on Security Council, had great humanitarian programs (relief for Europe and Asia via medicine, food, clothing) and wrote important human-rights documents. Western powers lead by US held balance of power, put Taiwan and not People’s Republic of China on security council, east-west polarization problems.

Truman was told by Churchill that iron curtain was descending over Europe, implemented policy of containment (blocking spread of communism), funded non-communist European countries to aid in defense, such as Greece in Spring 1947 when GB cut funding. Truman Doctrine: Tried to reduce poverty & chaos in Europe, in part to prevent socialists & communists from winning elections. US + 17westEU ratified GATT (General Agreement on Trade & Tariffs) (now WTO). Marshall plan cost US lots (12% budget in 1947!), aid took form of US products, Europe increased production by 35% 1947-1952, good marketing for US. Stalin rejected participation, accurately calling plan scheme to rebuild an anti-Soviet Germany, tightened grip on Eastern Europe in Spring 1948, sponsored coup in Czechoslovakia.

As Western Europe + USA unified West Germany, Stalin blockaded West Berlin on 1948 June 24 forcing US + RAF to airlift supplies, blockade halted on May 1949, western Europe+USA created Bundesrepublik Deutschland, USSR created DDR (German Democratic Republic). This crisis led to formation of North Atlantic Treaty Organization (Canada, USA, 10 wE) (mutual-defense pact), led to eventual involvement of US in France’s Vietnamese interests, USA allowed anticommunist right-wing dictators in Latin America, in 1955 NATO let in re-armed BRD, Stalin created Warsaw Pact including DDR in response.

US started stockpiling nuclear bombs in 1945, ignored scientists and thought they’d have 3-10 years before USSR got some, in August 1949 USSR tested theirs, arms race (hydrogen, missiles) began.

Truman polled low when in office, consumer product demand outweighed supply due to end of rationing, strikes occurred, Congress rejected new-deal-ish stuff as well as draft of strikers, Republicans got elected and reduced New Deal stuff a lot. Taft-Hartley act prohibited closed shop, limited strikes, required union officials to swear they weren’t communists.

Truman’s Fair Deal: government funded low income housing, 75c minimum wage, 10^7 covered by social security, anti-racism stuff rejected, national health insurance rejected, education aid rejected, end to Taft-Hartley rejected. Focus on economic growth via trade and productivity gains.

Cold War @ Home: communists everywhere (factories, shops, offices) trying to ruin US government, civil liberties, aid USSR -J Howard McGrath, communist party losing ground in late 1940s, americans gave government more power and gave up certain rights due to this concern.

1947 National Security Act: DoD, NSC, NSRB (peacetime military preparedness), science funding from DoD & NSRB, CIA developed from OSS, many (4*10^6) employees, defense spending 10% GNP by 1953.

Loyalty program blacklisted employees on suspicion of communist or fascist sympathies, Attorney General Clark blacklisted organizations for vague reasons, Truman could not veto Internal Security/McCarran act requiring communist organizations to register w/Subversive Activities Control Board, allowed arrests of registered people in emergency, allowed deportation of immigrant communist citizens, also blacklisted and banned immigration of not-straight people, terminated in 1973.

2nd red scare: Hollywood accused of communism, actors/producers had to testify before HUAC, noncompliant people lost jobs, advertisers persuaded to cancel advertising with suspected USSR,UN,liberal-sympathizing studios, labor movement forced to kick out communists.

McCarthyism: Joe McCarthy fired people for being gay, Better Dead than Red slogan created, communism treated as worse than military threat, McCarthy claimed State Department had 205 communists and army was full of communists, was censured in 1954.

Culture: US anxious about losing wealth and community structure post-war, pessimistic film noir became popular, anxious alienation common in literature, UFO sightings common, 1956 Invasion of the Body Snatchers about people being replaced with aliens while they slept mirrored concerns about apathy in the face of communist subversion.

Family treated as bulwark against concerns, people married younger and had more kids causing baby boom, lots of consumer spending, women (against advice) worked outside home in cheap jobs, imaginary traditional america w/o employed women desired, women’s employment said to aid crime and communism

military-industrial communities in American west common, esp. LA & Bay area, WWII new communities expanded, sprawl&pollution&congestion&resource strain problems, populations near nuclear testing got cancer a lot

American Way: Lots of freedom rallies, freedom fashion shows, fake communist takeover in Mosinee WI, Freedom Train carried patriotic displays around country, duck and cover in schools [like we do for school shootings ;) ], patriotic/propaganda stuff in schools (US rules USSR drools in the lesson plans), loyalty oaths for teachers, some protested but not much.

After Jiang Jieshi failed to reform corruption and form not-all-Nationalist coalitions, USA cut funding, Nationalist troops surrendered to Mao Zedong’s Communists, PRC & USSR allied in Feb 1950.

South Korea invaded by communist NK in 1950Jun25, MacArthur & troops helped reclaim SK, pushed NK past 38th ignoring Chinese warnings, as UN troops approached Yalu Chinese attacked, MacArthur pushed for invasion of China, Truman said no and fired him on 1951April10.

Truman bypassed Congressional authority by peacetime draft and non-war action in Korea, had acted according to NSC-68, which talked about permanent total war and trying to plant seeds of destruction in USSR as foreign policy and stated sacrifice of freedom-associated benefits to protect way of life was necessary, defence budget $5.2*10^10 in 1953, anti-communist propaganda funded, propaganda airdropped

Eisenhower portrayed self as being less warlike and supporting limited welfare state, was popular with voters and New Deal coalition was no longer a majority.