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Transcript of Chapter 29 The American Century. Postwar Economy US government convinced sharp swings in business...
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Chapter 29
The American Century
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Postwar Economy
• US government convinced sharp swings in business cycles could be manipulated through monetary and fiscal policy
• Reconversion to peacetime economy
• Economic boom due to pent-up demand and forced wartime savings
• GI Bill of Rights – education and business
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Postwar Economy
• Taxes cut and price controls removed - Inflation and labor unrest led to Republican control of Congress
• Taft-Hartley Act – passed over Truman veto – outlawed the closed shop and allowed presidential injunctions to prevent strikes that endangered national interests
• Act hampered unionizing of new industries but not existing unions
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The Containment Policy
• Stalin continued to expand Soviet domination in Europe and Asia
• US demobilized (6.5 million to 1.5 million) but Russia maintained huge army
• Foreign officers warned against Russian aggression
• The Sources of Soviet Conduct by George Kennan called for West to contain USSR
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The Atom Bomb
• Truman saw bomb as counterweight to Soviet power
• Many scientists against use of bomb (Oppenheimer) – Truman doubted people would permit its use again
• Proposed deal whereby UN would monitor nations to ensure no bombs made – US would destroy stockpile
• USSR refused
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Greece
• Communist guerrillas waged war against Greek monarchy
• Britain warned US they would cut off aid to Greece
• Truman asked Congress for $400 million in aid for Greece and Turkey to fight communism
• Using aid to fight communism = Truman Doctrine
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The Marshall Plan
• 1947 Sec. State George C. Marshall proposed US financed reconstruction of Europe – would even allow $ to Soviet Union and satellites
• Europeans set up committee calling for $22.4 billion
• Stalin afraid $ would draw satellites into US orbit – would not participate
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The Marshall Plan
• By 1951 Europe booming• Europe now divided into
communist east and democratic west
• West announced plans to create a new democratic West Germany
• Russia responded with Berlin blockade
• US and West responded with Berlin Airlift
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Japan and China
• US occupied Japan and did not allow USSR a role in China
• General MacArthur - military governor of Japan – helped create stable, prosperous state
• US attempted to broker agreement between Nationalists under Chiang Kai-shek and Mao Zedong
• 1947 - Civil war erupted in China
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Election of 1948
• Truman’s popularity low
• Republican nominee Governor Dewey
• Southern Democrats left party over civil rights plank
• Formed “Dixiecrat” party and nominated Strom Thurmond
• Liberals organized a new progressive party and nominated former VP Wallace
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Election of 1948
• Truman launched an aggressive whistle-stop campaign
• Truman warned Republicans would do away with New Deal gains
• Success of Berlin Airlift also strengthened Truman
• Progressive party fell into hands of communist sympathizers driving away many liberals
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Election of 1948
• Dewey’s campaign was smug and lackluster – expected to win without effort
• Truman won the election and attempted to enact a Fair Deal – little of which was passed
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Containing Communism
• North Atlantic Treaty Organization (NATO) formed to counter Soviet threat to Europe
• 1949 – USSR detonated an atomic weapon – caused US to expand its arsenal
• 1950 – US begins development of hydrogen bomb (USSR already developing)
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Containing Communism
• By 1949 mainland China in communist hands
• Chiang Kai-shek and Nationalists fled to Formosa (Taiwan)
• Containment relied on money but not men on the ground – Truman began to reduce number of troops
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Containing Communism
• NSC – 68Submitted by Secretary of State Dean
AchesonCalled for enormous increase in military
spending (350% increase)Create an arms race that the USSR could not
hope to win due to inferior systemTruman not warm to idea but changed mind
due to war in Korea
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The Korean War
• Japanese disarmed in Korea by USSR in the north and the US in the south
• Both left the peninsula but USSR left a well-armed army whereas the one left by the US was small and ill-trained
• US policy makers determined that military involvement in Asia was impractical – US defense perimeter to be based on Japan and Philippines
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The Korean War
• Korea excluded from perimeter in speech by Sec State Acheson in 1950
• North Korea responded with an attack on South Korea
• Truman resolved to stop the S.O.B.’s
• US planes and ground troops were sent to help without a declaration of war
• Truman accepted NSC-68
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The Korean War
• US secured UN Security Council approval for defense of South Korea (USSR?)
• General MacArthur placed in command
• 16 nations supplied troops though US forces comprised about 90% of the force
• Pusan Perimeter• Inchon Invasion
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The Korean War
• North Korea retreated to well above 38th parallel
• Some advised Truman to stop at parallel – not to entice USSR or China to widen war
• MacArthur sought full occupation of North Korea
• Truman authorized the stop line at the Yalu River
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The Korean War
• Chinese “volunteers” began to turn up in hauls of POWs
• MacArthur assured Truman China would not dare intervene
• China entered war with over 250,000 troops
• UN forces pushed back to 38th parallel• MacArthur urged the use of atomic
weapons and naval blockade of China
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The Korean War
• Truman – afraid of starting WWIII- fired MacArthur
• Korean War became unpopular due to mounting casualties and costs
• Truce negotiations began in 1951 but war would drag on until 1953
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Communists at Home
• Korean War illustrated growing US decline in ability to influence world affairs
• Fear of communist espionage in US increased
• Truman set up Loyalty Review Board to check on government employees – about 2,700 workers fired over 10 year period
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Communists at Home
• Whittaker Chambers (Time) versus Alger Hiss (former state department official)
• Case fed fears of communist underground
• Klaus Fuchs – British scientist• Harry Gold – associate of
Fuchs• Julius and Ethel Rosenberg
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McCarthyism
• 1950 – Joseph McCarthy (Wisconsin) claimed he had list of 205 communists in the State Department
• No evidence to back up his claims
• Backed by public opinion (Red Scare) McCarthy attacked several public figures including George Marshall
• The “Big Lie” – enormity of charges and status of targets must mean there was truth
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1952 Election
• Truman low in polls again due to Korean War, firing of MacArthur, and charges made by McCarthy
• Republicans nominated Eisenhower• Eisenhower promised to go to Korea• “I Like Ike”• Democrats nominated Governor Adlai
Stevenson
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1952 Election
• Stevenson tagged as an “egghead”
• Eisenhower attempted to emulate Washington and remain above partisan politics
• Fiscal conservative
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Eisenhower-Dulles Foreign Policy
• Dulles argued against containment using military forces – believed nuclear arsenal sufficient
• Beliefs tested on Korea – nukes sent to Asia along with vague warnings of “tougher measures”
• Weeks later armistice in Korea signed
• China unaware?
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Eisenhower-Dulles Foreign Policy
• 1954 - Communist China shelled two islands manned by Nationalist Chinese troops
• Chiang Kai-shek appealed to US for help
• 1955 – Eisenhower announced that US willing to use nuclear weapons to defend the islands
• China backed down
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McCarthy Self-Destructs
• McCarthy continued attacks on the State Department
• Overreached when he began attacks on the army
• Televised Army-McCarthy hearings brought about his downfall
• His combativeness and disregard for human values became apparent and he lost public favor
• McCarthy was censured by the Senate and became inconsequential – died of cirrhosis of liver 1957
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Post-Korean Asian Policy
• Trouble erupted in French Indochina in 1953
• Communists supplied Viet Minh with arms
• Truman countered with supplies to French – Eisenhower continued policy
• 1954 – Battle of Dien Bien Phu• UN divided Vietnam at 17th
parallel – two Vietnams created
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Post-Korean Asian Policy
• Democratic Republic of Vietnam – North - (communist) under Ho Chi Minh
• Republic of Vietnam – South – under Bao Dai
• Elections scheduled for 1956• Bao Dai overthrown by Ngo
Dinh Diem• US supported Diem• Establishment of Southeast
Asia Treaty Organization (SEATO)
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Israel and the Middle East
• Jewish immigration into Palestine
• Zionism
• 1947 – UN partition of Palestine
• 1948 – Establishment of Israel
• Eisenhower – policy of moderation
• 1952 – Egyptian revolution deposes King Farouk – Gamal Abdel Nasser takes control
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Israel and the Middle East
• US prepared to give Egypt $ for Aswan Dam but no arms
• Egypt leaned towards USSR
• Eisenhower revoked offer – Nasser nationalized Suez Canal
• British and French forces attacked Egypt (Israel also attacked)
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Israel and the Middle East
• US calls for ceasefire in UN – vetoed by Britain and France
• USSR (Khrushchev) threatened to send troops and fire missiles against Britain and France
• British, French, and Israeli troops withdrew• Eisenhower issued the Eisenhower Doctrine –
US prepared to use force against any communist aggression (restatement of containment policy)
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Eisenhower and Khrushchev
• Eisenhower won reelection in 1956
• Cold War continued • Khrushchev came to power in
USSR upon death of Stalin• De-Stalinized Russia• Crude, temper tantrums,
bellicose • US advantages evaporated with
launch of Sputnik
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Eisenhower and Khrushchev
• US bomber advantage obsolete – Russian ICBMs new threat
• Khrushchev boasted USSR could destroy US
• The “Missile Gap”• Threat of nuclear war
caused more accommodation between US and USSR
• Mutual visits – Nixon’s kitchen debate / Disneyland
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Eisenhower and Khrushchev
• A planned conference between US and USSR halted due to U-2 incident
• Eisenhower accepted responsibility
• Khrushchev turning out nuclear missiles like “sausages from an automatic machine”
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Latin America Aroused
• 1947 – Organization of American States (OAS) established (US had no veto power)
• Latin American radicals protested US support for dictators and lack of financial aid for poor
• 1954 – US supported invasion of Guatemala by Honduras due to Soviet influence
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Latin America Aroused
• 1958 – Nixon’s motorcade attacked in Goodwill Tour of Latin America – forced to abandon trip
• 1959 – Cuban Revolution• Castro nationalized American
businesses and negotiated trade agreement with USSR
• Eisenhower broke off diplomatic relations with Cuba
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Civil Rights
• Ideological competition with communism caused many to question current attitudes of racial equality
• American racism hurt America’s cause in Asia and Africa
• Coincided with crackdown on communists in America
• 1950 Internal Security Act (McCarran Act)
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Civil Rights
• Oppenheimer lost security clearance
• Military desegregated• Desegregation of colleges
began in 1938 under Supreme Court rulings
• 1954 – Brown v. Board of Education of Topeka – Thurgood Marshall argued against “separate but equal”
• The court ruled all schools must desegregate “with all deliberate speed”
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Civil Rights
• Few schools complied – where they did riots erupted
• Eisenhower did little to enforce the ruling
• 1957 – Little Rock – Governor Faubus called out National Guard to prevent blacks from attending white school
• Eisenhower called in army troops and nationalized the National Guard to allow black students to attend
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Civil Rights
• Southern resistance only strengthened black and sympathetic white resolve
• Civil Rights Act of 1957 – allowed attorney general to obtain injunctions to stop officials from interfering with Black voters
• Law also established Civil Rights Commission
• Enforcement of the law was spotty
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Election of 1960
• Kennedy versus Nixon• Issue of Catholicism• Both were cold warriors –
JFK even admitted he liked McCarthy
• Television debates – power of the media
• Kennedy’s victory in popular vote was razor thin