Economics, Government, & the Cold War · You sell both and buy one really fancy cow - with a pedigree. CAPITALISM: ... property & redistribute property 4. Equality amongst people,

Economics, Government, &

the Cold War

Why do states cooperate with each other?

ECONOMIC TERMS ASSOCIATED

WITH POLITICS

a. CAPITALISM – Economic system where citizens

own property & private businesses control companies.

b. COMMAND ECONOMY – government controls the

economy

• SOCIALISM: social & economic system where the

government owns & controls production & distribution of goods

• COMMUNISM: socioeconomic order where the

government distributes common ownership of production & wealth

– no social classes

c. MIXED ECONOMY _________________________

Types of Government

• ANARCHY: No government control at all.

• ARISTOCRACY: Government in which all wealth is possessed by a few rich families.

• AUTOCRACY: Government run according to the interests of the ruler (not the people)

– Can be next hereditary ruler, succession & people are suppressed

• DEMOCRACY: Governmental system where people elect leaders & run for office– Freedom

• DICTATORSHIP: one leader controls the government and the government controls the people.

• COMMUNISM: Governmental system forces the people to be economically equal by redistributing the wealth

You have two cows…

ANARCHY: You have two cows. The cows decide you have no right to do anything with their milk and leave to form their own society.

ARISTOCRACY: You have two cows. You sell both and buy one really fancy cow - with a pedigree.

CAPITALISM: You have two cows. You sell one and buy a bull.

DEMOCRACY: You have two cows. You and your neighbors decide who gets the milk.

DICTATORSHIP: You have two cows. The government takes both cows and forces you to join the army.

SOCIALISM: You have two cows. You give one of them to your neighbor because he didn’t have any cows.

COMMUNISM: You have two cows. The government takes one of them and gives it to your neighbor because he didn’t have any cows.

ARAB SPRING: Late 2010- spring 2011

• Major protests in countries in SW Asia & N. Africa

• Force to remove autocratic rulers in Egypt, Libya, Tunisia, & Yemen

• Protests

– Demonstrations, rallies, strikes, & civil disobedience

– Led by college-age people

– Social media

• contagious diffusion

Comparing Regimes

Democracy Autocracy

Selection of Leaders

Citizen Participation

Checks and Balances

Globalized Trend toward Democracy:

• Replace autocratic institutions monarchies

• Increase participation & suffrage (right to vote)

• Diffusion of democratic principles

• Think Arab Spring!!!!!

Cold War

Political division of the world between the allies of the United States and theallies of the Soviet Union.

First World: North America & Western Europe

Second World: U.S.S.R. & Eastern Bloc countries

Third World: The underdeveloped countries, such as much of Latin America & Southeast Asia

MDCS

LDCS

What time period inspired Communism?

• Industrial Revolution Rise of Capitalism!

• Problems with this industrialization:

– Unsafe working conditions

– Unsanitary conditions

– Poor housing

– Employment of the wife demoralizes the family unit

– Child labor

The Book That Inspired It All

• The Communist Manifesto – 1848 (governments back then?)

• Karl Marx & Frederick Engels (Prussia) exiled in London

1. History of class struggles

2. Rise of capitalism lead to social conflict

– Economic inequalities - New middle class (bourgeoisie)

– Working class (proletariat)

3. Working class would rise , take over, abolish private property & redistribute property

4. Equality amongst people, including women

5. History would led to a new era classless society

- desire to abolish countries & nationalities

6. Worldwide revolution as all countries unite!

• Appeal of Communism / Marxism: ________________

COMMUNIST vs. SOCIALIST

Communism finds 1st

home in Russia

• Peter’s Palace /

Summer Palace

• Note: 31 Royal

palaces in

St. Petersburg

What is to be done?

RISE OF COMMUNISM

•World War I

•March 1917

•November 1917

• Treaty of Brest-Litosvk

•Civil War between the Reds & Whites

Cold War (1945-1991)

•CAUSE:

• Ending of WWII – Distrust between US & USSR over Yalta Conference

between Joseph Stalin & Franklin D. Roosevelt

– Soviet lack of involvement in Asia in ending of WWII

– Capture of Berlin

– Formation of Poland

Political division of the world between the allies of the United States versus the allies of the Soviet Union.

Cold War Divisions

Post- WWII

Europe destroyed

• Superpowers ( _ + _)

influence Europe– Economically

– Politically

Iron Curtain: 1945-1990

From Stettin in the Baltic to Trieste in the Adriatic an "iron curtain" has

descended across the Continent. Behind that line lie all the capitals of the

ancient states of Central and Eastern Europe. Warsaw, Berlin, Prague,

Vienna, Budapest, Belgrade, Bucharest, and Sofia; all these famous cities

and the populations around them lie in what I must call the Soviet sphere,

and all are subject, in one form or another, not only to Soviet influence but to

a very high and in some cases increasing measure of control from Moscow.

- Winston Churchill, March 5, 1946

SHATTERBELT – region caught up in the

conflict between two superpowers – Boundaries often changed

• Cold War – Germany, Vietnam & Korea

• No direct fighting between the super powers

NATO vs. Warsaw PactNATO: Military, political, & economic alliance against the Soviet Union

WARSAW PACT: Soviet Union’s defensive treaty in Central & Eastern

Europe during the Cold War.

Cold War- Global Presence

• Korean War

• Cuba– Bay of Pigs Invasion

(April 15, 1961)

– Cuba Missile Crisis(October 15 – 28, 1962)

• Vietnam War

• Spies, secrecy & espionage

• Nuclear Weapons Race

• Space Race

• Olympic Tensions

FALL OUT

Blast from the past

BERLIN BOMB SHELTER

Berlin Wall – To prevent migration

August 13, 1961

• 96 miles long

• 12 feet high

CHECKPOINT CHARLIE

BERLIN WALL FallsNovember 9, 1989

The Fall of CommunismREVOLUTIONS OF 1989

Fall of Eastern Block Countries

Poland – June 4, 1989

Hungary – October 20

East Germany- Wall falls 11/9/89- Reunited 10/3/90

Bulgaria -November 10, 1989

Czechoslovakia- November 28

Yugoslavia- January 1990

Romania - May 1990

GERMANY united!!

Soviet Union falls

• German Challenges:

– Reluctance to support other

– Inefficiency economy (E.G.)

– Inferior feelings (E.G.)

– West German resentment

• Out of Communism:

– Heavy debt

– Outdated technology

– Industrial pollution

– Need for foreign investment

Socioeconomic Challenges Out of Communism

History remains there • Communist art

– Propaganda based

• Massive construction to rebuild