RAH Day 5 AgendaRAH 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– 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 classCurrent events connected to classBy PAUL KRUGMAN – Sept 7, 2008THE 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 TranscriptTruman Doctrine Transcript

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

Truman Doctrine – March 12, 1947

Economic cooperation Act – the Economic cooperation Act – the Marshall PlanMarshall Plan

Post War DevastationPost War Devastation

Post War DevastationPost War Devastation

Marshall Plan rebuilds Marshall Plan rebuilds the townthe town

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

Marshall Plan – proposed 1947, passed into law April 3, 1948

Berlin AirliftBerlin Airlift

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 GermanyEvaluation 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

Berlin Airlift – June 1948-May 1949

NATONATO

NATO Flag

Map of Expansion of NATO – US and Canada were original founding members of the alliance not depicted on map

Policy – military alliance linking Canada and US to Western EuropePurpose – 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 1955Evaluation 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.

Creation of NATO –1949

Chapter 2 - InflationChapter 2 - InflationProblem – 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 - DemobilizationChapter 2 - DemobilizationProblem – 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 - strikesChapter 2 - strikesProblem – 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 - healthcareChapter 2 - healthcareProblem – 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 communismChapter 2 – fear of communismProblem – 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 Chapter 2 – ideological direction of gov’tgov’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 RightsChapter 2 – Civil RightsProblem – 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 paradoxTruman and paradoxCold 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 Election1948 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 candidates1948 candidates

Henry Wallace Progressive Party

1. very liberal 2. more New

Deal,3. cooperation

with USSR4. Civil rights

Harry Truman Democratic Party

1. liberal 2. Fair Deal,3. Containme

nt of USSR4. Civil Rights

Thomas Dewey Republican Party

1. conservative

2. Smaller gov’t lower taxes,

3. Confront USSR

4. Anti-union

Strom Thurmond States’ Rights Democratic Party

1. Socially conservative

2. Opposed to civil rights

3. Confront USSR4. Opposed to civil

rights

49.6%49.6%

WinnerWinner

2.4%2.4%

0% electoral 0% electoral votevote

45.1%45.1%

35.5% 35.5% electoral voteelectoral vote

2.4%2.4%

7.5% electoral 7.5% electoral votevote

PP 14 - Truman’s Fair Deal – Jan. 5, PP 14 - Truman’s Fair Deal – Jan. 5, 19491949

Proposal Provisions Did it pass? Why?Minimum wage increase

Increase wage to .75 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 in

Passed due to guilt and altruism

National Housing Act 1949

810,000 new low income housing units built with Fed $

Passed – housing pressure on localities and good for veterans

Increase in social security

80% increase in benefits and 10 ½ million more eligible

Passed – continuation of popular New Deal plan

PP 14 - Truman’s Fair Deal – Jan. 5, PP 14 - Truman’s Fair Deal – Jan. 5, 19491949

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 anti-strikes 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 CenterThe Vital CenterEconomic 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 QuizOrigins of Cold War Quiz1. How did WWII lead to the Cold War?2. Describe 2 of the purposes for the Marshall Plan.3. What was the main goal of the Truman Doctrine?4. Why did the Berlin Airlift occur?5. What policy developed from George Kennan’s Long

Telegram?6. How did USSR respond to creation of NATO?7. Why were communist parties popular in Europe

immediately following WWII?8. 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 QuizOrigins of Cold War Quiz1. 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

2. Describe 2 of the purposes for the Marshall Plan. to help Europe rebuild, to prevent spread of communism and help US economy

3. What was the main goal of the Truman Doctrine? Containment generally, specifically re: Greece and Turkey, also to get Congress to approve the $

4. Why did the Berlin Airlift occur? Soviet’s blockaded Berlin (entirely in E. Ger) and we did not want Berlin to fall to communism

5. What policy developed from George Kennan’s concerns? containment

Origins of Cold War QuizOrigins of Cold War Quiz6. How did USSR respond to development of NATO? Created

Warsaw Pact and was further concerned with invasion7. 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

8. 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 -