The Korean War the Economy and Politics After WWII Politics and the economy in the 1950s Economy recovered from Depression in WWII Fears about post war recession once the war ended First 18 months of peace saw economic turmoil o Shortages in food and consumer goods o Labor unrest also a problem Wages declined as economy transitioned Used strikes to negotiate wages and conditions 5 million workers were on strike in 1946 Inflation was the biggest post war problem o 1945 30 billion in savings o Scarcity of goods led to higher prices By 1947 economy on the rebound o Consumers had access to goods houses cars o US foreign aid stimulated economy too Used investment to buy American goods o 1944 Servicemen s Readjustment Act boosted the economy Known as GI Bill Meant to help soldiers returning from war Help transition soldiers back to civilian life Offered job training and education Provided loans for houses or start businesses Successful for soldiers American economy and society 1 2 million homes 2 2 million soldiers in college in 1947 Contributed to long term economic growth Economy also affected by family boom o Americans married in huge numbers at the end of WWII Marriages surpassed wartime highs in 1946 o Age of married women dropped Average age was 20 by 1950 o Couples had more babies 1940 1945 average birthrate was 2 9 million per year 1946 1950 3 6 million per year o Families need things houses clothing schoolrooms 1946 1947 about 10 of income spent on furniture and appliances Politics affected by economy and the Cold War Truman recognized strong economy and foreign policy necessary o Had to protect prosperity o Had to be tough on communism o Sought the vital center New Deal type reforms were the best guard against communism Moderate oversight regulation could keep radicalism away Inclusive social economic policies o Reality was Truman had to prove anti communism to get domestic reforms 1948 presidential election influence by economy Cold War Truman faced opposition from Republicans and his own party o Henry Wallace Progressive Party Had been FDR s VP from 1941 1944 Argued that the US was forcing Cold War on the Soviets as a distraction Wanted to repeal draft and destroy nuclear weapons o Also challenged by southern Democrats the Dixiecrats Officially States Rights Democrats Nominated Strom Thurmond Walked out of 1948 convention over civil rights in party platform Claimed to be protecting against government bureaucracy actually protecting segregation and discrimination Most serious challenger Republican Thomas Dewey o Governor of NY but lacked common touch o Was not relatable Truman s prospects bleak Dewey ran low key campaign expected to win Dewey actually lost 189 electoral votes to 303 Democrats got control of Congress back Truman promised Fair Deal to Americans in campaign o Continuation of New Deal policies o Ran into opposition by Republicans southern Democrats o Passed Housing Act of 1949 Government support for affordable housing Not as successful as people hoped Chronically underfunded Still a step that government takes to helping people into homes Wanted to help discrimination national health insurance aid to small o 1950 Reformed Social Security Act Added 10 5 million people Increased benefits by 80 o Other attempts failed or were delayed farmers o The Fair Deal was watered down inconsistent Political opposition not only problem for Fair Deal Fears of communism also played into politics Fears based in real concerns o Tensions with Soviet Union o Revelations about espionage Concerns elevated into hysteria during early 1950s o Due to political maneuvering o Produced a second Red Scare o Left leaning ideas and politics were under increasing scrutiny gov aid Red hunters seen at all levels of government 1946 Truman administration investigated federal employees People lost jobs or were publicly humiliated State and local governments also investigated suspected radicals o Civil rights activists homosexuals seen as especially suspect o Pushed out of jobs watched by FBI Communist party specifically targeted too o Only about 20 000 members o People in party or affiliated with party members faced investigation Most famous examples of red hunting in congress o House Un American Activities Committee HUAC o Senator Joseph McCarthy HUAC established in 1945 to root out subversion o Targeted Hollywood actors producers writers o Professors and teachers lost jobs Senate joined House investigations with diplomats and labor unions 1948 Justice Department convicted 11 members of American Communist Party Senator Joseph McCarthy made name with aggressive red hunting o Elected in 1946 from Wisconsin o Crude and ambitious February 9 1950 gave speech in Wheeling VA o Alleged 205 communists in state department o Accusations rarely backed by facts often changed allegations Became media sensation in early 1950s o Investigated dozens of agencies o Went too far with investigation of army o Senate censured McCarthy in Dec 1954 McCarthyism faded out with fall of McCarthy Suspicion of communism continued longer HUAC investigated into 1960s Fear of communism rooted in 4 factors o Worried about espionage and loyalty o Nativism and anti Semitism o Sense of chaos and loss of control o Need for conformity of thought Tied to idea that American way of life best needed to be protected The Korean War 1950 1953 Cold War tensions manifested in other ways Increased or affected other dynamics Example The Korean War 1950 1953 o US wanted to contain communism in Asia o Internal dynamics in Korea challenged containment o US and Soviet Union got drawn in o US and UN troops engaged directly o Chinese troops also engaged o Soviets supported communist forces with supplies What happened exactly Korea under Japanese control 1910 1945 1945 Soviets went into north and US into the south o Met at 38th parallel o Became de facto border between south and north Korea Hope was to unite north and south into one country 1948 US recognized government in South Korea Soviets recognized communist government in North Korea June 25 1950 North Korea invaded South Korea o Soviet equipment Chinese training o US worried that Stalin was behind the attack not true he just supported North Korea s pursuits o Truman sensitive about criticism on anti communism 1949 lost China to communism June 30 1950 Truman sent US troops into South Korea o Had backing of the United Nations o American led but it was technically an international force 21 countries