1. SOCIETY, ECONOMY, AND THE COLD WAR Liberalism and the Cold War

2. Battle for Postwar World Liberalism in postwar world Would New Deal be maintained, extended, gutted? Ideas of consensus But really a battle over postwar political-economy Effects of anti-communism on society and reform efforts The politics of mass consumption

3. The Liberal Consensus FDR: Freedom from Want & Fear – the New Deal; economic security for all Schlesinger: U.S. is a liberal nation Schlesinger: Dems and Reps both liberal (consensus) Galbraith: liberal project must be expanded to include all Americans Employment Act of 1946: govt. required to increase employment, consumption; creation of Council of Economic Advisors – acceptance of govt. role in economy

4. Postwar Liberalism, aka… Keynesianism, American-style The third way (neither pure capitalism nor socialism) Social democracy Consumers’ Republic The Affluent Society The mixed economy (both govt. and private components) The New Deal Order

5. Liberalism: defined Government involvement in economy to ensure certain level of social equality Government action to curb worst aspects of market capitalism (inequality, speculation, boom-and-bust econony) Government action to ensure consumers have money to take part in economy, thus boosting consumption and production (Keynesianism) Social safety net, social welfare, social security to ensure basic living standard

6. Major actors in New Deal coalition Democratic Party, particularly northern Democrats Southern Democrats reluctant participants, particularly for black residents Labor movement: right to organize granted by 1935 Wagner Act Ethnic urban voters who saw New Deal as means of achieving American Dream Black Americans, formerly loyal to Party of Lincoln

7. The Consumers’ Republic U.S. goal of a mass consumption economy Citizen consumers – good Americans buy goods, support economy, ensure U.S. economic growth and dominance Fits with liberal ideals: govt. involvement, ideals of equality, inclusion in economic prosperity Ensured by civic actors: unions, consumer advocates, govt. agencies/programs

8. Symbols of Consumers’ Republic Shopping malls Suburban growth Geographical and social mobility Television Car culture Highways Appliances – household goods Change in political culture – consumption Fast food

9. Opponents & Problems Conservative opposition from southern Democrats and Republicans Taft-Hartley Act (1947) – unions had to purge communists, right-to-work laws outlawing closed shop Anti-communism used as tool to fight unions, expansion of liberalism, civil rights Failures to organize southern workers – Operation Dixie, 1946

10. A SHORT HISTORY The Cold War:

11. Major Strategies Domino Theory – if one country falls to communism, others will fall Containment Space race Arms race, deterrent Use propaganda at home: work hard, consume, patriotism, anticommunism (McCarthyism), Red Scare, blacklisting Spread democracy and/or capitalism

12. Major Strategies of Cold War Containment – stop communism from spreading, keep it where it already existed Domino Theory – if one country goes communist, others will too Truman Doctrine – aid to countries to fight communism Marshall Plan Military bases abroad Nuclear weapons, deterrent Alliances – NATO, UN

13. Cold War doc #1: George Kennan’s “Long Telegram,” 1946 Soviets believe in inevitable conflict between communist and capitalist powers Soviets irrational, ignorant of reality, fanatical Should be contained: by show of force, at many diff. points around world Kennan: “Much depends on the health and vigor of our own society.” U.S. should solve domestic problems as symbol of American Way U.S. should project positive ideals to world

14. C.W. doc #2: Truman Doctrine, 1947 Greek civil war between communists and nationalists Truman requested U.S. aid to prevent communist victory Set precedent of U.S. action to prevent communist expansion Concept of containment – limiting communism to countries behind Iron Curtain

15. C.W. doc #3: Marshall Plan, 1947 George C. Marshall (Sec. of State under Truman) speech Addressing problem of recovery in Europe after WWII – devastated cities, economies Europe “must have substantial additional help, or face economic, social, and political deterioration of a very grave character.” “purpose should be the revival of working economy in the world so as to permit the emergence of political and social conditions in which free institutions can exist”

16. Marshall Plan (cont.) Soviets and Warsaw Pact countries invited to apply for aid Economic stability would prevent countries from going communist – another policy of containment Economic recovery would provide markets for American goods, thus boosting American economy further Between 1948-1952 - 13 billion dollars in aid

17. Political Cartoon, Edwin Marcus, “Can He Block It?,” ca. 1947

18. Marshall Plan Countries Map

19. C.W. doc #4: Ike’s “Domino Theory” President Eisenhower’s April 7, 1954 press conference Eisenhower asked about “the strategic importance of Indochina (Vietnam) to the free world” Context: China had gone Commie in 1949; Korean War, 1950-53 Fear that Vietnam or other Asian countries or colonies would go communist “Finally, you have broader considerations that might follow what you would call the "falling domino" principle. You have a row of dominoes set up, you knock over the first one, and what will happen to the last one is the certainty that it will go over very quickly. So you could have a beginning of a disintegration that would have the most profound influences.”

20. Domino Theory (cont.) Eisenhower: “the 'falling domino' principle. You have a row of dominoes set up, you knock over the first one, and what will happen to the last one is the certainty that it will go over very quickly. So you could have a beginning of a disintegration that would have the most profound influences.” Concern for people who would be under dictatorship Concern that Japan (new ally) would be threatened by loss of Asian markets, buffer zone

21. C.W. doc #5: Kitchen Debate, 1959 Link to debate (with subtitles) Link

22. Common Themes U.S. govt. action must be taken at home and abroad to achieve mass consumption society Mass consumption will help Americans (and others) achieve higher quality of life, political stability, ideals of equality American Way of Life should be spread around world and used as bulwark against communist expansion

23. Major Problems in Postwar Society Anticommunism and nationalism overwhelmed idealism Liberalism contained Foreign anticommunism led to war and retrenchment Mass consumption became end in itself w/o liberal ideals (equality, fairness, labor rights/standards) Creation of modern middle class – forget about those who haven’t made it Cultural and political conformity resulting from mass consumption or mass anticommunist hysteria