1. Post WWII The Two Superpowers Changes in Europe post 1945 Changes in Europe post 1945

2. What’s happening?  Europe lay in ruins (physically, economically)  Japan destitute, territory occupied  China about to enter civil war  India struggling for independence from Britain  African and South East Asian countries suffering from neo-colonialism  Latin American countries under military dictatorships

3. 1945- Why US and USSR? US  Relatively unharmed from war (physically isolated, entered war later)  Produced half world’s total industrial and agricultural output  Vast reserves of oil  Atomic Bomb  Replaced Europe as leader of industrialized world USSR  Lost 20 million citizens  “treasure house” of natural resources  Largest land mass  Occupied Eastern Europe important technical expertise and industrial equipment

4. Obvious Differences US  Multi-party democracy  Capitalism  Free market economies  Truman USSR  Single-party states  Totalitarianism  Communism  Centralized government and economy  Stalin

5. Capitalism  “Capitalism: economic system in which private individuals and business firms carry on the production and exchange of goods and services through a complex network of prices and markets.”  http://encarta.msn.com/encyclopedi a_761576596/Capitalism.html

6. Communism  “Communism: a theory and system of social and political organization …sought to overthrow capitalism through a workers’ revolution and establish a system in which property is owned by the community as a whole rather than by individuals. “  http://encarta.msn.com/encyclopedi a_761572241/communism.html

7. Communism or Capitalism?  Activity: –For the following statements, determine if the statement is associated with communism or capitalism

8. Statements:  “No private person should be allowed to profit from the work from other citizens”VERSUS  “Any person should be free to start a business and employ people”  “Opportunity for all”VERSUS  “Fairness and equality for all”

9.  “Any profit he or she makes is reward for hard work.”VERSUS  “All profits, instead of going into the pockets of one owner or even shareholders, goes to the state- everyone benefits.”

10.  “Average standard of living higher, but a wide spread between rich and poor.” VERSUS  “Lower average standard of living, but (in theory) everyone is equal.”  “A free economy.” VERSUS  “a controlled economy”

11.  “Only one party of government- no need for anymore.”VERSUS  “Choice of many parties for government, chosen by the people.”

13. Post WWII  March 1946- former British Prime Minister Churchill’s “Iron Curtain” speech –Recognized threat of Soviet expansion into central Europe –Wanted to stop this from happening –USSR maintained forces in Hungary, Bulgaria, Czechoslovakia

14. American Reaction  March 1947: Truman Doctrine  USA would intervene “to support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures”  Truman would use $400 million in aid to assist governments in Greece and Turkey –Policy of containment

15. American Reaction  Marshall Plan (1947-1951)- money and aid to help rebuild war torn Europe. Refused by Soviets in July 1948