37 Post-War Prosperity And Cold War Fears
Introduction
The Challenges of Peacetime
The decade and a half immediately following the end of World War II was one in which middle- and working-class Americans hoped for a better life than the one they lived before the war. These hopes were tainted by fears of economic hardship, as many who experienced the Great Depression feared a return to economic decline. Others clamored for the opportunity to spend the savings they had accumulated through long hours on the job during the war when consumer goods were rarely available.
African Americans who had served in the armed forces and worked in the defense industry did not wish to return to “normal.” Instead, they wanted the same rights and opportunities that other Americans had. Still other citizens were less concerned with the economy or civil rights; instead, they looked with suspicion at the Soviet presence in Eastern Europe. What would happen now that the United States and the Soviet Union were no longer allies, and the other nations that had long helped maintain a balance of power were left seriously damaged by the war? Harry Truman, president for less than a year when the war ended, was charged with addressing all of these concerns and giving the American people a “fair deal.” (2)
Demobilization and the Return to Civilian Life
Not everyone wanted the government to reduce America’s military might, however. Secretary of the Navy James Forrestal and Secretary of War Robert P. Patterson warned Truman in October 1945 that an overly rapid demobilization jeopardized the nation’s strategic position in the world. While Truman agreed with their assessment, he felt powerless to put a halt to demobilization. In response to mounting political pressure, the government reduced the size of the U.S. military from a high of 12 million in June 1945 to 1.5 million in June 1947—still more troops than the nation ever had in arms during peacetime. Soldiers and sailors were not the only ones dismissed from service. As the war drew to a close, millions of women working the jobs of men who had gone off to fight were dismissed by their employers, often because the demand for war materiel had declined and because government propaganda encouraged them to go home to make way for the returning troops. While most women workers surveyed at the end of the war wished to keep their jobs (75–90 percent, depending on the study), many did in fact leave them.
Nevertheless, throughout the late 1940s and the 1950s, women continued to make up approximately one-third of the U.S. labor force.
Readjustment to postwar life was difficult for the returning troops. The U.S. Army estimated that as many of 20 percent of its casualties were psychological. Although many eagerly awaited their return to civilian status, others feared that they would not be able to resume a humdrum existence after the experience of fighting on the front lines. Veterans also worried that they wouldn’t find work and that civilian defense workers were better positioned to take advantage of the new jobs opening up in the peacetime economy. Some felt that their wives and children would not welcome their presence, and some children did indeed resent the return of fathers who threatened to disrupt the mother-child household. Those on the home front worried as well. Doctors warned fiancées, wives, and mothers that soldiers might return with psychological problems that would make them difficult to live with.
The GI Bill of Rights
Well before the end of the war, Congress had passed one of the most significant and far-reaching pieces of legislation to ease veterans’ transition into civilian life: The Servicemen’s Readjustment Act, also known as the GI Bill. Every honorably discharged veteran who had seen active duty, but not necessarily combat, was eligible to receive a year’s worth of unemployment compensation. This provision not only calmed veterans’ fears regarding their ability to support themselves, but it also prevented large numbers of men—as well as some women—from suddenly entering a job market that did not have enough positions for them. Another way that the GI Bill averted a glut in the labor market was by giving returning veterans the opportunity to pursue an education; it paid for tuition at a college or vocational school and gave them a stipend to live on while they completed their studies.
The result was a dramatic increase in the number of students—especially male ones—enrolled in American colleges and universities. In 1940, only 5.5 percent of American men had a college degree. By 1950, that percentage had increased to 7.3 percent, as more than two million servicemen took advantage of the benefits offered by the GI Bill to complete college. The numbers continued to grow throughout the 1950s. Upon graduation, these men were prepared for skilled blue-collar or white-collar jobs that paved the way for many to enter the middle class. The creation of a well-educated, skilled labor force helped the U.S. economy as well. Other benefits offered by the GI Bill included low-interest loans to purchase homes or start small businesses.
However, not all veterans were able to take advantage of the GI Bill. African American veterans could use their educational benefits only to attend schools that accepted black students. The approximately nine thousand servicemen and women who were dishonorably discharged because they were gay or lesbian were ineligible for GI Bill benefits. Benefits for some Mexican American veterans, mainly in Texas, were also denied or delayed.
The Return of the Japanese
While most veterans received assistance to help in their adjustment to postwar life, others returned home to an uncertain future without the promise of government aid to help them resume their prewar lives. Japanese Americans from the West Coast who had been interned during the war also confronted the task of rebuilding their lives. In December 1944, Franklin Roosevelt had declared an end to the forced relocation of Japanese Americans, and as of January 1945, they were free to return to their homes. In many areas, however, neighbors clung to their prejudices and denounced those of Japanese descent as disloyal and dangerous. These feelings had been worsened by wartime propaganda, which often featured horrific accounts of Japanese mistreatment of prisoners, and by the statements of military officers to the effect that the Japanese were inherently savage. Facing such animosity, many Japanese American families chose to move elsewhere. Those who did return often found that in their absence, “friends” and neighbors had sold possessions that had been left with them for safekeeping. Many homes had been vandalized and farms destroyed. When Japanese Americans reopened their businesses, former customers sometimes boycotted them. (2)
The Fair Deal
Early in his presidency, Truman sought to build on the promises of Roosevelt’s New Deal. Besides demobilizing the armed forces and preparing for the homecoming of servicemen and women, he also had to guide the nation through the process of returning to a peacetime economy. To this end, he proposed an ambitious program of social legislation that included establishing a federal minimum wage, expanding Social Security and public housing, and prohibiting child labor. Wartime price controls were retained for some items but removed from others, like meat. In his 1949 inaugural address, Truman referred to his programs as the “Fair Deal,” a nod to his predecessor’s New Deal. He wanted the Fair Deal to include Americans of color and became the first president to address the National Association for the Advancement of Colored People (NAACP). He also took decisive steps towards extending civil rights to African Americans by establishing, by executive order in December 1946, a Presidential Committee on Civil Rights to investigate racial discrimination in the United States. Truman also desegregated the armed forces, again by executive order, in July 1948, overriding many objections that the military was no place for social experimentation.
Congress, however, which was dominated by Republicans and southern conservative Democrats, refused to pass more “radical” pieces of legislation, such as a bill providing for national healthcare. The American Medical Association spent some $1.5 million to defeat Truman’s healthcare proposal, which it sought to discredit as socialized medicine in order to appeal to Americans’ fear of Communism. The same Congress also refused to make lynching a federal crime or outlaw the poll tax that reduced the access of poor Americans to the ballot box. Congress also rejected a bill that would have made Roosevelt’s Fair Employment Practices Committee, which prohibited racial discrimination by companies doing business with the federal government, permanent. At the same time, they passed many conservative pieces of legislation. For example, the Taft-Hartley Act, which limited the power of unions, became law despite Truman’s veto. (2)
The Cold War
As World War II drew to a close, the alliance that had made the United States and the Soviet Union partners in their defeat of the Axis powers—Germany, Italy, and Japan—began to fall apart. Both sides realized that their visions for the future of Europe and the world were incompatible. Joseph Stalin, the premier of the Soviet Union, wished to retain hold of Eastern Europe and establish Communist, pro-Soviet governments there, in an effort to both expand Soviet influence and protect the Soviet Union from future invasions. He also sought to bring Communist revolution to Asia and to developing nations elsewhere in the world. The United States wanted to expand its influence as well by protecting or installing democratic governments throughout the world. It sought to combat the influence of the Soviet Union by forming alliances with Asian, African, and Latin American nations, and by helping these countries to establish or expand prosperous, free-market economies. The end of the war left the industrialized nations of Europe and Asia physically devastated and economically exhausted by years of invasion, battle, and bombardment. With Great Britain, France, Germany, Italy, Japan, and China reduced to shadows of their former selves, the United States and the Soviet Union emerged as the last two superpowers and quickly found themselves locked in a contest for military, economic, social, technological, and ideological supremacy. (2)
From Isolationism to Engagement
The United States had a long history of avoiding foreign alliances that might require the commitment of its troops abroad. However, in accepting the realities of the post-World War II world, in which traditional powers like Great Britain or France were no longer strong enough to police the globe, the United States realized that it would have to make a permanent change in its foreign policy, shifting from relative isolation to active engagement.
On assuming the office of president upon the death of Franklin Roosevelt, Harry Truman was already troubled by Soviet actions in Europe. He disliked the concessions made by Roosevelt at Yalta, which had allowed the Soviet Union to install a Communist government in Poland. At the Potsdam conference, held from July 17 to August 2, 1945, Truman also opposed Stalin’s plans to demand large reparations from Germany. He feared the burden that this would impose on Germany might lead to another cycle of German rearmament and aggression—a fear based on that nation’s development after World War I.
Although the United States and the Soviet Union did finally reach an agreement at Potsdam, this was the final occasion on which they cooperated for quite some time. Each remained convinced that its own economic and political systems were superior to the other’s, and the two superpowers quickly found themselves drawn into conflict. The decades-long struggle between them for technological and ideological supremacy became known as the Cold War. So called because it did not include direct military confrontation between Soviet and U.S. troops, the Cold War was fought with a variety of other weapons: espionage and surveillance, political assassinations, propaganda, and the formation of alliances with other nations. It also became an arms race, as both countries competed to build the greatest stockpile of nuclear weapons, and also competed for influence in poorer nations, supporting opposite sides in wars in some of those nations, such as Korea and Vietnam. (2)
Containment Abroad
In February 1946, George Kennan, a State Department official stationed at the U.S. embassy in Moscow, sent an eight-thousand-word message to Washington, DC. In what became known as the “Long Telegram,” Kennan maintained that Soviet leaders believed that the only way to protect the Soviet Union was to destroy “rival” nations and their influence over weaker nations. According to Kennan, the Soviet Union was not so much a revolutionary regime as a totalitarian bureaucracy that was unable to accept the prospect of a peaceful coexistence of the United States and itself. He advised that the best way to thwart Soviet plans for the world was to contain Soviet influence—primarily through economic policy—to those places where it already existed and prevent its political expansion into new areas. This strategy, which came to be known as the policy of containment, formed the basis for U.S. foreign policy and military decision making for more than thirty years.
As Communist governments came to power elsewhere in the world, American policymakers extended their strategy of containment to what became known as the domino theory under the Eisenhower administration: Neighbors to Communist nations, so was the assumption, were likely to succumb to the same allegedly dangerous and infectious ideology. Like dominos toppling one another, entire regions would eventually be controlled by the Soviets. The demand for anti-Communist containment appeared as early as March 1946 in a speech by Winston Churchill, in which he referred to an Iron Curtain that divided Europe into the “free” West and the Communist East controlled by the Soviet Union.
The commitment to containing Soviet expansion made necessary the ability to mount a strong military offense and defense. In pursuit of this goal, the U.S. military was reorganized under the National Security Act of 1947. This act streamlined the government in matters of security by creating the National Security Council and establishing the Central Intelligence Agency (CIA) to conduct surveillance and espionage in foreign nations. It also created the Department of the Air Force, which was combined with the Departments of the Army and Navy in 1949 to form one Department of Defense.
The Truman Doctrine
In Europe, the end of World War II witnessed the rise of a number of internal struggles for control of countries that had been occupied by Nazi Germany. Great Britain occupied Greece as the Nazi regime there collapsed. The British aided the authoritarian government of Greece in its battles against Greek Communists. In March 1947, Great Britain announced that it could no longer afford the cost of supporting government military activities and withdrew from participation in the Greek civil war. Stepping into this power vacuum, the United States announced the Truman Doctrine, which offered support to Greece and Turkey in the form of financial assistance, weaponry, and troops to help train their militaries and bolster their governments against Communism. Eventually, the program was expanded to include any state trying to withstand a Communist takeover. The Truman Doctrine thus became a hallmark of U.S. Cold War policy.
The Marshall Plan
By 1946, the American economy was growing significantly. At the same time, the economic situation in Europe was disastrous. The war had turned much of Western Europe into a battlefield, and the rebuilding of factories, public transportation systems, and power stations progressed exceedingly slowly. Starvation loomed as a real possibility for many. As a result of these conditions, Communism was making significant inroads in both Italy and France. These concerns led Truman, along with Secretary of State George C. Marshall, to propose to Congress the European Recovery Program, popularly known as the Marshall Plan. Between its implantation in April 1948 and its termination in 1951, this program gave $13 billion in economic aid to European nations.
Truman’s motivation was economic and political, as well as humanitarian. The plan stipulated that the European nations had to work together in order to receive aid, thus enforcing unity through enticement, while seeking to undercut the political popularity of French and Italian Communists and dissuading moderates from forming coalition governments with them. Likewise, much of the money had to be spent on American goods, boosting the postwar economy of the United States as well as the American cultural presence in Europe. Stalin regarded the program as a form of bribery. The Soviet Union refused to accept aid from the Marshall Plan, even though it could have done so, and forbade the Communist states of Eastern Europe to accept U.S. funds as well. Those states that did accept aid began to experience an economic recovery.
Showdown in Europe
The lack of consensus with the Soviets on the future of Germany led the United States, Great Britain, and France to support joining their respective occupation zones into a single, independent state. In December 1946, they took steps to do so, but the Soviet Union did not wish the western zones of the country to unify under a democratic, pro-capitalist government. The Soviet Union also feared the possibility of a unified West Berlin, located entirely within the Soviet sector. Three days after the western allies authorized the introduction of a new currency in Western Germany—the Deutsche Mark—Stalin ordered all land and water routes to the western zones of the city Berlin to be cut off in June 1948. Hoping to starve the western parts of the city into submission, the Berlin blockade was also a test of the emerging U.S. policy of containment (Figure 12-1).
Unwilling to abandon Berlin, the United States, Great Britain, and France began to deliver all needed supplies to West Berlin by air. In April 1949, the three countries joined Canada and eight Western European nations to form the North Atlantic Treaty Organization (NATO), an alliance pledging its members to mutual defense in the event of attack. On May 12, 1949, a year and approximately two million tons of supplies later, the Soviets admitted defeat and ended the blockade of Berlin. On May 23, the Federal Republic of Germany (FRG), consisting of the unified western zones and commonly referred to as West Germany, was formed. The Soviets responded by creating the German Democratic Republic, or East Germany, in October 1949. (2)
Containment at Home
In 1949, two incidents severely disrupted American confidence in the ability of the United States to contain the spread of Communism and limit Soviet power in the world. First, on August 29, 1949, the Soviet Union exploded its first atomic bomb—no longer did the United States have a monopoly on nuclear power. A few months later, on October 1, 1949, Chinese Communist Party leader Mao Zedong announced the triumph of the Chinese Communists over their Nationalist foes in a civil war that had been raging since 1927. The Nationalist forces, under their leader Chiang Kai-shek, departed for Taiwan in December 1949.
Immediately, there were suspicions that spies had passed bomb-making secrets to the Soviets and that Communist sympathizers in the U.S. State Department had hidden information that might have enabled the United States to ward off the Communist victory in China. Indeed, in February 1950, Wisconsin senator Joseph McCarthy, a Republican, charged in a speech that the State Department was filled with Communists. Also in 1950, the imprisonment in Great Britain of Klaus Fuchs, a German-born physicist who had worked on the Manhattan Project and was then convicted of passing nuclear secrets to the Soviets, increased American fears. Information given by Fuchs to the British implicated a number of American citizens as well. The most infamous trial of suspected American spies was that of Julius and Ethel Rosenberg, who were executed in June 1953 despite a lack of evidence against them. Several decades later, evidence was found that Julius, but not Ethel, had in fact given information to the Soviet Union.
Fears that Communists within the United States were jeopardizing the country’s security had existed even before the victory of Mao Zedong and the arrest and conviction of the atomic spies. Roosevelt’s New Deal and Truman’s Fair Deal were often criticized as “socialist,” which many mistakenly associated with Communism, and Democrats were often branded Communists by Republicans. In response, on March 21, 1947, Truman signed Executive Order 9835, which provided the Federal Bureau of Investigation with broad powers to investigate federal employees and identify potential security risks. State and municipal governments instituted their own loyalty boards to find and dismiss potentially disloyal workers.
In addition to loyalty review boards, the House Committee on Un-American Activities (HUAC), established in 1938 to investigate suspected Nazi sympathizers, after World War II also sought to root out suspected Communists in business, academia, and the media. HUAC was particularly interested in Hollywood because it feared that Communist sympathizers might use motion pictures as pro-Soviet propaganda. Witnesses were subpoenaed and required to testify before the committee; refusal could result in imprisonment. Those who invoked Fifth Amendment protections, or were otherwise suspected of Communist sympathies, often lost their jobs or found themselves on a blacklist, which prevented them from securing employment. Notable artists who were blacklisted in the 1940s and 1950s include composer Leonard Bernstein, novelist Dashiell Hammett, playwright and screenwriter Lillian Hellman, actor and singer Paul Robeson, and musician Artie Shaw. (2)
To the Trenches Again
Just as the U.S. government feared the possibility of Communist infiltration of the United States, so too was it alert for signs that Communist forces were on the move elsewhere. The Soviet Union had been granted control of the northern half of the Korean peninsula at the end of World War II, and the United States had control of the southern portion. The Soviets displayed little interest in extending its power into South Korea, and Stalin did not wish to risk confrontation with the United States over Korea. North Korea’s leaders, however, wished to reunify the peninsula under Communist rule. In April 1950, Stalin finally gave permission to North Korea’s leader Kim Il Sung to invade South Korea and provided the North Koreans with weapons and military advisors (Figure 12-2).
On June 25, 1950, troops of the North Korean People’s Democratic Army crossed the thirty-eighth parallel, the border between North and South Korea. The first major test of the U.S. policy of containment in Asia had begun, for the domino theory held that a victory by North Korea might lead to further Communist expansion in Asia, in the virtual backyard of the United States’ chief new ally in East Asia—Japan. The United Nations (UN), which had been established in 1945, was quick to react. On June 27, the UN Security Council denounced North Korea’s actions and called upon UN members to help South Korea defeat the invading forces. As a permanent member of the Security Council, the Soviet Union could have vetoed the action, but it had boycotted UN meetings following the awarding of China’s seat on the Security Council to Taiwan instead of to Mao Zedong’s People’s Republic of China.
On June 27, Truman ordered U.S. military forces into South Korea. They established a defensive line on the far southern part of the Korean peninsula near the town of Pusan. A U.S.-led invasion at Inchon on September 15 halted the North Korean advance and turned it into a retreat. As North Korean forces moved back across the thirty-eighth parallel, UN forces under the command of U.S. General Douglas MacArthur followed. MacArthur’s goal was not only to drive the North Korean army out of South Korea but to destroy Communist North Korea as well. At this stage, he had the support of President Truman; however, as UN forces approached the Yalu River, the border between China and North Korea, MacArthur’s and Truman’s objectives diverged. Chinese premier Zhou Enlai, who had provided supplies and military advisors for North Korea before the conflict began, sent troops into battle to support North Korea and caught U.S. troops by surprise. Following a costly retreat from North Korea’s Chosin Reservoir, a swift advance of Chinese and North Korean forces and another invasion of Seoul, MacArthur urged Truman to deploy nuclear weapons against China. Truman, however, did not wish to risk a broader war in Asia. MacArthur criticized Truman’s decision and voiced his disagreement in a letter to a Republican congressman, who subsequently allowed the letter to become public. In April 1951, Truman accused MacArthur of insubordination and relieved him of his command. The Joint Chiefs of Staff agreed, calling the escalation MacArthur had called for “the wrong war, at the wrong place, at the wrong time, and with the wrong enemy.” Nonetheless, the public gave MacArthur a hero’s welcome in New York with the largest ticker tape parade in the nation’s history.
By July 1951, the UN forces had recovered from the setbacks earlier in the year and pushed North Korean and Chinese forces back across the thirty-eighth parallel, and peace talks began. However, combat raged on for more than two additional years. The primary source of contention was the fate of prisoners of war. The Chinese and North Koreans insisted that their prisoners be returned to them, but many of these men did not wish to be repatriated. Finally, an armistice agreement was signed on July 27, 1953. A border between North and South Korea, one quite close to the original thirty-eighth parallel line, was agreed upon. A demilitarized zone between the two nations was established, and both sides agreed that prisoners of war would be allowed to choose whether to be returned to their homelands. Five million people died in the three-year conflict. Of these, around 36,500 were U.S. soldiers; a majority were Korean civilians. (2)
Timeline
1950
- N. Korean troops cross the 38 th parallel, 25 June
- Emergency session of U.N. Security Council decides to aid S. Korea, 26 June
- Truman shifts 7 th Fleet to Formosa Strait, 27 June
- U.S. troops first meet NKPA just north of Osan and are forced to retreat, 4 July
- MacArthur given command of U.N. Forces, 8 July
- Walker’s 8th Army holds Pusan Perimeter, August – September
- MacArthur lands at Inchon, seizes Kimpo Airport and Seoul, 15 September.
- U.N. forces drive N. Koreans from S Korea, 1 Oct.
- U.N. authorizes MacArthur to enter N. Korea, 7 Oct.
- U.N. capture Pynongyang, 19 Oct.
- N. Korean forces pushed to Yalu River, Oct.
- Chinese troops cross Yalu into N. Korea, counterattack, 14 Oct. – 2 Nov.
- MacArthur launches new offensive, 24 Nov.
- 200,000 Chinese attack U.N. forces, 26 Nov.
- 1 st Marine Div & 7 th Div encircled at Changjin Reservoir, 27 Nov.
- U.N. forces retreat, Seoul falls to communists, Dec.
- 1 st Marine Div. and 7 th Division complete breakout, 9 Dec.
- Walker killed, 23 Dec.
- Ridgway takes command of 8 th Army, 26 Dec.
1951
- CCF & NKPA retake Seoul, 4 Jan.
- Ridgway revitalized 8 th Army, halts retreat & stabilizes the defense, 8–24 Jan.
- U.N. Resolution offers China a peace plan. China rejects, 13–17 Jan.
- U.N. forces initiate a limited offensive, 25 Jan.
- 8 th Army attacks and retakes Seoul, 14 March
- MacArthur relieved of command after challenging Truman, 11 April
- Chinese drive U.N. forces south of 38th parallel, 22 April
- Second Chinese offensive beaten back, 10 May
- Battles lines stabilize near 38th parallel
- Negotiations between U.N. forces & Communists begin at Kaesong, 10 July
1953
- Negotiating while fighting, 10 July 1951– 27 July 1953
- Armistice signed at Panmunjom
As the war in Korea came to an end, so did one of the most frightening anti-Communist campaigns in the United States. After charging the U.S. State Department with harboring Communists, Senator Joseph McCarthy had continued to make similar accusations against other government agencies. Prominent Republicans like Senator Robert Taft and Congressman Richard Nixon regarded McCarthy as an asset who targeted Democratic politicians, and they supported his actions. In 1953, as chair of the Senate Committee on Government Operations, McCarthy investigated the Voice of America, which broadcast news and pro-U.S. propaganda to foreign countries, and the State Department’s overseas libraries. After an aborted effort to investigate Protestant clergy, McCarthy turned his attention to the U.S. Army. This proved to be the end of the senator’s political career. From April to June 1954, the Army-McCarthy Hearings were televised, and the American public, able to witness his use of intimidation and innuendo firsthand, rejected McCarthy’s approach to rooting out Communism in the United States. In December 1954, the U.S. Senate officially condemned his actions with a censure, ending his prospects for political leadership.
One particularly heinous aspect of the hunt for Communists in the United States, likened by playwright Arthur Miller to the witch hunts of old, was its effort to root out gay men and lesbians employed by the government. Many anti-Communists, including McCarthy, believed that gay men, referred to by Senator Everett Dirksen as “lavender lads,” were morally weak and thus were particularly likely to betray their country. Many also believed that lesbians and gay men were prone to being blackmailed by Soviet agents because of their sexual orientation, which at the time was regarded by psychiatrists as a form of mental illness. (2)