THE COLD WAR BEGINS. - The Cold War was the period of tension between the U.S. and U.S.S.R. from 1945-1991. - How many wars were fought between the 2.

THE COLD WAR BEGINS

- The Cold War was the period of tension between the U.S. and U.S.S.R. from 1945-1991.

- How many wars were fought between the 2 nations?

- Why is this period in history referred to as the Cold War?

Communism 101

In the United States, some people are extremely wealthy, such as Bill Gates, C.E.O. OF Microsoft Corp.

Bill Gates home in Medina, Washington. The mansion is 60,000 square feet, about 30 times larger than the average American house.

While many others work hard, long hours, for little pay

When this kind of inequality occurs, the poor become very upset, and it could lead to civil unrest

Communists offer a solution

Instead of some people getting extremely wealthy owning

businesses, and workers making little, let’s have

the workers be the owners, and they can

share the profits equally

Share the Wealth

Bill Gates net worth = $67 billion

If Bill Gates money was shared, 1.34 million people could each have $50,000.

A Flaw in the Plan?

• Sounds great, right?

• There will be plenty of money to go around

• So, what’s the problem?

A Flaw in the Plan?

• Why do people like Bill Gates start businesses?

• To make money

• Would people like Bill Gates invest thousands and millions of dollars to start businesses if they had to share the profits?

• No!

A Flaw in the Plan?

• So, in a communist system, there is no profit-motive (incentive) to start new businesses

• There also is no incentive to work hard, since everything is shared – Why bust your tail and work hard when you will make the same as someone who is not?

• So communist countries are typically poor, and lack new technology

Bye-Bye Freedom

Since businesses are not being started, and people are not working hard, the

government must take over and force people to

start businesses and work hard.

Bye-Bye Freedom

• People are unhappy by this and start to complain, so the government then takes away freedom of speech and other rights.

• So in a communist system, there is not only no economic growth (high poverty rates and little new technology) but also a lack of freedom

Capitalism (Adam Smith) v. Communism (Karl Marx)

• The communist system goes against the system used in the U.S.

• What is that system called?

• Good, it’s called Capitalism

• As a result, the United States and the U.S.S.R. remained at odds for years

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.

Iron Curtain:

Imaginary line separating

Eastern Europe

(communist) from Western Europe (free)

Truman Doctrine (1947)

U.S. gave weapons and supplies to Turkey and

Greece to prevent communist takeovers

Marshall Plan (1948)

U.S. gave billions of $ to European countries

to rebuild so they would not be taken over by communists

The Berlin Problem

• Following WW2, Germany divided

• West Germany, freed by Americans and British, became democracy

• East Germany was made communist by the Soviets

Map shows the two Cold War alliances:U.S = NATO Soviet Union = Warsaw Pact

The problem was the capital (Berlin) was in East Germany

• Berlin divided after WW2 between U.S., G.B., France, and the Soviet Union

• U.S., G.B., and France combine zones into West Berlin (part of West Germany)

• Soviet zone becomes East Berlin (part of East Germany)

Roadways would

connect West

Berlin to the rest of

West Germany

• Soviets had major problem in Berlin

• Citizens saw up close how West Berlin (capitalism) was doing much better than East Berlin (communism)

• To solve problem, Soviets cut off access to West Berlin from West Germany

• Soviets didn’t want to look like bad guys, so they claimed roadways were being repaired

• Soviets thought West Berlin would run out of supplies, and be forced to ask Soviets for help

United States Responds

• U.S. had policy of containment, so couldn’t let communism spread to West Berlin

• If you were President Truman, what would you do?

The Berlin AirliftTruman decided to have planes fly supplies to West Berlin

NATO (U.S. and its Allies) v. Warsaw Pact (U.S.S.R. and its satellites)

Soviets Develop Atomic Bomb (1949)Arms Race is On!

Communist North Korea, with approval from China and U.S.S.R. invaded non-Communist South Korea. The U.S., with

help from United Nations, drove out North Koreans

Background to the Crisis

On January 1, 1959, Fidel Castro takes over Cuba and makes it a communist country

In October of 1962, an American U-2 spy plane takes this photo of Cuba

The photo shows missile launchers being built in

Cuba by the Soviet Union

Cuban Missile Crisis (October, 1962)

• In the end, the Soviets turn ships around

• Represents “Height of Cold War” as U.S. and Soviets begin dialogue and in the 1970s enter into period of détente (easing of tensions)

Vietnam War (1954 – 1973)

Vietnam War• Vietnamese defeated French (1954)

to gain independence

• Country was temporarily split into north and south

• When south backed out of agreement to unite country, the north (communist) invaded

• U.S. sent troops to stop communist takeover but was unsuccessful

Decolonization Begins as Cold War Continues

Cold War Affects the World

Non AlignmentSome countries able to avoid taking

sides in Cold War (worked both sides to their advantage)

India Egypt

Global Economy

• During time Cold War was going on, countries of the world were become more closely connected

• Economic interactions b/t nations grew, and many multinational corporations were formed

Multinational Corporations

• Generally started in West and moved to other areas of world

• Vastly affected regions they moved to (sometimes positively, but sometimes negatively)

Problems Created by Multinational Corporations

• Workers exploited and pollution problems

• Oil shortages (1973, 1979) showed how economy was becoming global b/c they affected so many nations around the world

Cold War Ends

Scaring the “EVIL EMPIRE”

Star Wars (SDI):Reagan’s Plan for a missile defense shield

Reagan’s excessive spending on the

military scared the Soviets into making

concessions to the U.S.

The End of the Cold War

As countries of Eastern Europe are gaining freedom, Soviet leader Mikhail Gorbachev disbands the Soviet Union and the Cold War ends December 25th, 1991

The World Beyond the 90sEnd of Cold War represented new period in world

history still going on today in which:

•U.S. only superpower

•Regional tensions have emerged: Pakistan v. India, fighting in former Yugoslavia, mass killings in Africa

•Increase in regional trade: European Union, NAFTA

•Nations around the world have moved away from state controlled industry to private enterprise