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By the end of this section, you will be able to:
  • Explain how and why the Cold War emerged in the wake of World War II
  • Describe the steps taken by the U.S. government to oppose Communist expansion in Europe and Asia
  • Discuss the government’s efforts to root out Communist influences in the United States

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.

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 ( [link] ).

A photograph shows Clement Atlee, Harry Truman, and Joseph Stalin standing in front of a group of officials.
At the postwar conference in Potsdam, Germany, Harry Truman stands between Joseph Stalin (right) and Clement Atlee (left). Atlee became prime minister of Great Britain, replacing Winston Churchill, while the conference was taking place.

Questions & Answers

differentiate between demand and supply giving examples
Lambiv Reply
differentiated between demand and supply using examples
Lambiv
what is labour ?
Lambiv
how will I do?
Venny Reply
how is the graph works?I don't fully understand
Rezat Reply
information
Eliyee
devaluation
Eliyee
t
WARKISA
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Lambiv
multiple choice question
Aster Reply
appreciation
Eliyee
explain perfect market
Lindiwe Reply
In economics, a perfect market refers to a theoretical construct where all participants have perfect information, goods are homogenous, there are no barriers to entry or exit, and prices are determined solely by supply and demand. It's an idealized model used for analysis,
Ezea
What is ceteris paribus?
Shukri Reply
other things being equal
AI-Robot
When MP₁ becomes negative, TP start to decline. Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of lab
Kelo
Extuples Suppose that the short-run production function of certain cut-flower firm is given by: Q=4KL-0.6K2 - 0.112 • Where is quantity of cut flower produced, I is labour input and K is fixed capital input (K-5). Determine the average product of labour (APL) and marginal product of labour (MPL)
Kelo
yes,thank you
Shukri
Can I ask you other question?
Shukri
what is monopoly mean?
Habtamu Reply
What is different between quantity demand and demand?
Shukri Reply
Quantity demanded refers to the specific amount of a good or service that consumers are willing and able to purchase at a give price and within a specific time period. Demand, on the other hand, is a broader concept that encompasses the entire relationship between price and quantity demanded
Ezea
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Shukri
how do you save a country economic situation when it's falling apart
Lilia Reply
what is the difference between economic growth and development
Fiker Reply
Economic growth as an increase in the production and consumption of goods and services within an economy.but Economic development as a broader concept that encompasses not only economic growth but also social & human well being.
Shukri
production function means
Jabir
What do you think is more important to focus on when considering inequality ?
Abdisa Reply
any question about economics?
Awais Reply
sir...I just want to ask one question... Define the term contract curve? if you are free please help me to find this answer 🙏
Asui
it is a curve that we get after connecting the pareto optimal combinations of two consumers after their mutually beneficial trade offs
Awais
thank you so much 👍 sir
Asui
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities, where neither p
Cornelius
In economics, the contract curve refers to the set of points in an Edgeworth box diagram where both parties involved in a trade cannot be made better off without making one of them worse off. It represents the Pareto efficient allocations of goods between two individuals or entities,
Cornelius
Suppose a consumer consuming two commodities X and Y has The following utility function u=X0.4 Y0.6. If the price of the X and Y are 2 and 3 respectively and income Constraint is birr 50. A,Calculate quantities of x and y which maximize utility. B,Calculate value of Lagrange multiplier. C,Calculate quantities of X and Y consumed with a given price. D,alculate optimum level of output .
Feyisa Reply
Answer
Feyisa
c
Jabir
the market for lemon has 10 potential consumers, each having an individual demand curve p=101-10Qi, where p is price in dollar's per cup and Qi is the number of cups demanded per week by the i th consumer.Find the market demand curve using algebra. Draw an individual demand curve and the market dema
Gsbwnw Reply
suppose the production function is given by ( L, K)=L¼K¾.assuming capital is fixed find APL and MPL. consider the following short run production function:Q=6L²-0.4L³ a) find the value of L that maximizes output b)find the value of L that maximizes marginal product
Abdureman
types of unemployment
Yomi Reply
What is the difference between perfect competition and monopolistic competition?
Mohammed
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Source:  OpenStax, U.s. history. OpenStax CNX. Jan 12, 2015 Download for free at http://legacy.cnx.org/content/col11740/1.3
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