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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

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
poudel Reply
is gdp a reliable measurement of wealth
Atega Reply
introduction to econometrics
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Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
Alii Reply
what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
Ephraim
explain inflationcause and itis degre
Miresa Reply
what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
Chisomo Reply
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
Thapase Reply
who we can define macroeconomics in one line
Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
Mercy Reply
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money as unit of account means what?
Kalombe
A unit of account is something that can be used to value goods and services and make calculations
Jim
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Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
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Kalombe
hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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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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