RAH Day 5 Agenda
• Goal – to understand that foreign policies like containment are
complex, sometimes have unintended consequences and are
difficult to evaluate. To understand that Truman’s domestic
policies and the American political culture are examples of paradox.
• Finish containment chart through NATO p 11-12.
• Complete Graphic organizer of Truman’s Administration p 13-14
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Identify the problems facing the US after WWII
How did HST address these problems?
How did opposition to HST reflect a central Paradox?
How do the successes and failures of the Fair Deal apply to today’s
political environment?
• Questions from homework?
• Explain Schlesinger’s view of the American political culture
• How did foreign events affect domestic politics?
Current events connected to class
By PAUL KRUGMAN – Sept 7, 2008
THE POWER OF DE
The attempt to contain the fallout from the financial crisis is a fight
the feds seem to be losing.
As the economist Irving Fisher observed way back in 1933, when
highly indebted individuals and businesses get into financial
trouble, they usually sell assets and use the proceeds to pay down
their debt. What Fisher pointed out, however, was that such
selloffs are self-defeating when everyone does it: if everyone tries
to sell assets at the same time, the resulting plunge in market
prices undermines debtors’ financial positions faster than debt can
be paid off. So deflation in asset prices can turn into a vicious
circle. And one consequence of what he called a “stampede to
liquidate” is a severe economic slump.
Truman Doctrine Transcript
Truman Doctrine – March 12, 1947
Policy – a statement of US foreign policy generally to oppose
the spread of Soviet influence. Specifically it was an
argument to Congress to scare them into approving spending
$400million to help Greece and Turkey in 1947.
Purpose – to stop the spread of Soviet influence in Greece
and Turkey, and then the rest of the world.
Soviet reaction – Soviets felt threatened and thus further
supported “Communist” governments throughout the world
including China and Korea.
Evaluation of success – the doctrine was successful in
Greece, Turkey, Western Europe, (Including Berlin) and
Korea. But failed in China, North Korea, Vietnam and Cuba
Economic cooperation Act – the Marshall
Plan
Post War Devastation
Post War Devastation
Marshall Plan rebuilds the
town
Marshall Plan – proposed 1947, passed
into law April 3, 1948
Policy – a Congressional law called the Foreign Assistance Act
that authorized the US government to spend up to $13billion
over 4 years in Europe.
Purpose – 1. to stop the spread of Soviet influence in Europe,
2. To help Europe rebuild after the devastation of WWII,
3.
To link countries together through trade to help prevent war,
4. To help the US economy grow.
Soviet reaction – Soviets felt threatened and thought the US
was trying to undermine their system and turned down the
aid for the USSR and Eastern Europe.
Evaluation of success – the most successful foreign policy
ever implemented by the US – all goals were achieved
Berlin Airlift
Berlin Airlift – June 1948-May 1949
Policy – 11 months of 277,000 flights into Templehof airport
containing supplies of oil, coal, food and clothing.
Purpose – to stop the spread of communist influence in
Berlin, to prevent the fall of Berlin to the communists, to
show the world our resolve in containing communism and to
keep a bastion of democracy behind the Iron curtain.
Soviet reaction – Soviets felt threatened but did not want war,
so finally backed down and let West Berlin stay connected to
West Germany
Evaluation of success – very successful, all goals achieved.
Led to strong economic, military and political ties with
Germany to this very day. US still has major military bases in
Germany
NATO
NATO Flag
Map of Expansion
of NATO –
US and Canada
were original
founding members
of the alliance not
depicted on map
Creation of NATO –1949
Policy – military alliance linking Canada and US to Western
Europe
Purpose – to stop the spread of communist influence in W.
Europe, to help prevent war in Europe, and to act as a
mutual defense arrangement, protecting its members from
Soviet aggression.
Soviet reaction – Soviets felt threatened and created the
Warsaw Pact in 1955
Evaluation of success – very successful, all goals achieved.
NATO still exists today, protecting the peace in Europe. No
NATO countries fell to communism. But helped to lead to the
arms race and the development and deployment of
dangerous weapons in Europe and the world.
Chapter 2 - Inflation
Problem – very high inflation due to vast sums of money in hands of
many Americans who had not bought much for the previous 17
years – High demand + low supply + removal of price controls =
high inflation
Solution – reintroduce Price controls until supply could catch up to
demand.
Opposition – let the market work itself out – no price controls – too
communistic
Result – temporary OPA price controls stemmed inflation from ’47 to
’50, when most controls were removed – the key is that supply
caught up to demand.
Chapter 2 - Demobilization
Problem – 12 million men were in uniform overseas – we wanted
them brought home. But what will happen to jobs, income,
homes, families?
Solution – implement 1944 GI Bill (Servicemen’s Readjustment Act)
so vets could get unemployment payments, college tuition, low
interest loans for houses and businesses. Brought most troops
home by 1946. National Housing Act of 1949 to build 800k
housing units
Opposition – wanted troops home even faster and wanted taxes cut
Result – GI Bill was the most influential domestic policy of the last 50
years leading to 8 million new college students, white collar jobs,
new inventions, migration to suburbs, huge increase in house
building, ½ of women lost their jobs,
Chapter 2 - strikes
Problem – over 5000 strikes in 1946 – workers felt they had delayed
getting raises during the war, and post-war was the time for
raises. Lots of defense workers lost their jobs. Energy, steel and
transportation were shut down due to strikes
Solution – threatened owners with nationalization and the workers
with the draft if they did not negotiate and agree. On May 25,
1946 asked Congress for permission to draft Rail workers.
Opposition – Passed 1947 Taft-Hartley anti-union act over Truman’s
veto
Result – strikes were mostly ended, workers got better raises and
began the “benefits” of healthcare and pensions that are affecting
us today, but paradoxically these union victories also began a slow
decline in unionization and hurt industries by the 1980s and today.
Chapter 2 - healthcare
Problem – most Americans paid for healthcare out of pocket, but
medicine was becoming more expensive, making good health
difficult to obtain for the poor and working class.
Solution – HST proposes a national insurance program for all
Americans along the lines of the British system
Opposition – disliked the NHS and called it socialist and against
American values of free enterprise and self-reliance
Result – NHS was shot down, leading to the current private health
system we have today.
Chapter 2 – fear of communism
Problem – most Americans had grown fearful of the spread of
communism and Soviet power. This was caused by the Soviet
acquisition of the bomb, as well as spy rings, and communist
takeovers in Eastern Europe, China,
Solution – HST proposes through executive order 9835 to create the
Federal Employee Loyalty Program top investigate and remove
those deemed to be disloyal (connected to communists or accused
of such)
Opposition – the House under Republican control operates the House
Un-American Activities Committee (HUAC) and the rise of McCarthy
in the US Senate with his Subcommittee on Investigations
Result – 3000 federal employees were fired or resigned, hundreds or
thousands of people were accused or communist-leanings were
hinted at, and thus lost their jobs, friends and families through a
general process of blacklisting. A few were even imprisoned for not
answering questions or “lying”
Chapter 2 – ideological direction of gov’t
Problem – post-WWII with the tremendous success of the war, the war-time
economy and the New Deal during GD, there came a conflict over whether
the New Deal should continue, expand, or be repealed. Abroad – should
US come home (neo-isolationism) or lead the world (intervention or
internationalism)
Solution – HST proposes expanding the New Deal and leading the world
through multi-lateral institutions like the UN and to intervene to stop
communism.
Opposition – two sets – liberals wanted to go farther in expanding New Deal
and conservatives wanted to cut taxes and shrink the federal government.
FP – some wanted to be heavier-handed with USSR and others wanted to
cooperate, while others wanted to return to isolationism
Result – moderate expansion of existing New Deal policies, but no new
domestic programs. The US was a world leader just as Truman suggested
– spreading US influence militarily (Korea, bases in Germany, support for
France in ’Nam) diplomatically (new embassies opening throughout world),
economically (Marshall Plan, Truman Doctrine, IMF, World Bank)
Chapter 2 – Civil Rights
Problem – Blacks, Latinos, Natives, Women were all essentially2nd
class citizens after the war, even though they all worked and
sacrificed equally during the war. They wanted the equality
principle they had fought for during the war to be enacted after
the war
Solution – HST proposes a civil rights commission to investigate civil
rights issues, Executive Order 9980 desegregated the federal
bureaucracy and EO 9981 desegregated the US military, proposed
anti-lynching laws, civil rights laws
Opposition – conservatives and southern democrats (Dixiecrats)
opposed any desegregation and prevented all of the civil rights
laws Truman proposed from being passed into law
Result – the military and the federal workforce was desegregated
and the civil rights commission continued to investigate and report
on the conditions of civil rights in the US, but no laws were passed
until 1957
Truman and paradox
Cold War
1. Americans wanted the troops home from WWII but wanted to stop the
spread of Communism and Soviet power abroad.
2. The Implied threat of atomic bombs was meant to keep the USSR at bay,
but pushed the USSR to obtain the a-bomb.
3. To prevent war, more and more dangerous, powerful weapons were
created and deployed – so that they would not be used.
4. Wanted taxes lower and the government to focus on post-war domestic
problems, but politically blamed Truman for the loss of China to
communism and for being weak on the commies in Korea.
Post-war domestic issues
1. elected conservative Republicans to lower taxes and shrink the power of
the federal government – but blamed Truman for high inflation and
wanted solutions to housing, employment, wages and to stop crippling
strikes.
2. Wanted government to stay out of the economy so that business could
be business and the economy would boom – so that the government
would have more money to spend on social programs.
1948 Election
• Democrats split over :
– civil rights plank in the national platform that HST pushed
for. Therefore, with civil rights as an issue, souther
Demos left to support the States’ Rights Democratic Party
(Dixiecrats)
– direction of government – the old New Deal coalition
wanted more federal programs and expanded New Deal –
When Truman was unable to get that done and seemed
less liberal than they wanted, former VP and Commerce
Secretary Henry Wallace fronted the Progressive Party
1948 candidates
2.4%
0% electoral
vote
Henry Wallace
1.
2.
3.
4.
Progressive
Party
very liberal
more New
Deal,
cooperation
with USSR
Civil rights
49.6%
45.1%
Winner
35.5%
electoral vote
Harry Truman
1.
2.
3.
4.
Democratic
Party
liberal
Fair Deal,
Containment
of USSR
Civil Rights
2.4%
7.5% electoral
vote
Thomas Dewey
Strom Thurmond
1.
2.
1.
3.
4.
Republican
Party
conservative
Smaller gov’t
lower taxes,
Confront
USSR
Anti-union
2.
3.
4.
States’ Rights
Democratic Party
Socially
conservative
Opposed to civil
rights
Confront USSR
Opposed to civil
rights
PP 14 - Truman’s Fair Deal – Jan. 5, 1949
Proposal
Provisions
Did it pass? Why?
Minimum
Increase wage to .75
wage increase cents
Passed people wanted it just extended a New Deal
policy people already liked
External rent
controls
Temporary fixed price for
1947
Passed because of housing
shortage post WWII
Displaced
Person’s Act
400,000 refugees allowed Passed due to guilt and
in
altruism
National
Housing Act
1949
810,000 new low income
housing units built with
Fed $
Increase in
80% increase in benefits
social security and 10 ½ million more
eligible
Passed – housing pressure
on localities and good for
veterans
Passed – continuation of
popular New Deal plan
PP 14 - Truman’s Fair Deal – Jan. 5, 1949
Proposal
Provisions
Did it pass? Why?
Aid to
education
Money to improve schools Failed – too liberal and too
costly
Crop subsidies Money to help farmers
Failed – too liberal
Repeal of
Taft-Hartley
act
End limits on organized
labor
Failed – people still antistrikes and anti-communist
Ntnl health
plan
Federal gov’t to pay
doctors
Failed, too liberal - called
socialist
Civil rights
Anti-lynching, end poll
tax, protect blacks, end
disc in work
Failed – Dixiecrats and
most Republicans opposed
The Vital Center
Economic
Growth
Growth in the economy due to
capitalist activity will lead to
employment and productivity
increases which will lead to
socio-economic equality, the
end of class divisions, create
social harmony and provide
money for social programs
Gov’t action to promote economic
growth in the private sector will
provide money through taxes for
increased social welfare spending
by gov’t – operationally liberal –
philosophically conservative
Foreign
affairs
Interventionist internationalism
to contain communism and
soviet power
Wanted the troops brought home,
low taxes and a focus on domestic
issues but needed to keep the
commies down & out.
Wanted smaller gov’t but blamed
Truman for losing China and Korea
Prosperity
With the economy doing well
every boat would rise. The
people will be consensual,
standard of living will rise,
farmers, workers, businesses
will do better and everyone will
be happy.
High expectations were unmet
leading to increased social, class
and race tensions as well as
ideological divisions
Origins of Cold War Quiz
1.
2.
3.
4.
5.
6.
7.
8.
How did WWII lead to the Cold War?
Describe 2 of the purposes for the Marshall Plan.
What was the main goal of the Truman Doctrine?
Why did the Berlin Airlift occur?
What policy developed from George Kennan’s Long Telegram?
How did USSR respond to creation of NATO?
Why were communist parties popular in Europe immediately
following WWII?
Explain two reasons for the incompatibility of communism and the
American system.
• List evidence that Schlesinger is right, that there is a vital center in
American politics.
• Are the beliefs held by the “Vital Center” successful in achieving
their goals?
• Did the beliefs of the “Vital Center” work in reality?
Origins of Cold War Quiz
1.
2.
3.
4.
5.
How did WWII lead to the Cold War? USSR fear of invasion, dislike of
Truman, death and devastation, division of Europe and Germany, no free
elections, USSR anger at US for slow 2nd front, US use of A-bomb, political
power vacuum, lesson of appeasement
Describe 2 of the purposes for the Marshall Plan. to help Europe rebuild,
to prevent spread of communism and help US economy
What was the main goal of the Truman Doctrine? Containment generally,
specifically re: Greece and Turkey, also to get Congress to approve the $
Why did the Berlin Airlift occur? Soviet’s blockaded Berlin (entirely in E.
Ger) and we did not want Berlin to fall to communism
What policy developed from George Kennan’s concerns? containment
Origins of Cold War Quiz
6.
7.
8.
How did USSR respond to development of NATO? Created Warsaw Pact
and was further concerned with invasion
Why were communist parties popular in Europe immediately following
WWII? Communism often sounds good to the poor and homeless(most of
Europe was devastated by WWII) because it promises that everyone
equally will have food, a home and a job
Explain two reasons for the incompatibility of communism and the
American system. 1.Private property – only communal property, 2. belief
in god – no religion, 3. political and personal choice – no choice, 4. limited
government - totalitarian unlimited government, 5. spreading democracy
& capitalism - world revolution to spread communism -