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CHAPTER 28
Economics in History
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In the 1950s, American technology produced a flood of
consumer goods. These included cars and houses in suburbs
springing up across the country. You and your family have
moved to a new house in a growing suburb—which some
people think of as the American Dream.
What is the American Dream to you?
• How might the American Dream be
connected to prosperity?
• How might the American Dream involve
helping others?
• How might the American Dream be
connected to democracy, equality,
and justice?
1945 United Nations is established.
1947 Truman Doctrine and Marshall Plan are established.
1948 Harry S. Truman is elected president.
1949 United States joins NATO.
1952 Dwight D. Eisenhower is elected president.
United States explodes first hydrogen bomb.
1953 Rosenbergs are executed as spies.
1954 Senator Joseph McCarthy claims
Communist influence in U.S. Army.
1956 Highway Act is passed. Eisenhower is
reelected president
To World
1960 John F. Kennedy is elected president.
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1946 Churchill gives “Iron Curtain” speech.
1948 Berlin Airlift begins.
1949 Germany is partitioned. China becomes
Communist.
1950 Korean War begins.
1952 Mau Mau revolt shakes Kenya.
1953 Korean War cease-fire is agreed to.
1956 Soviets suppress Hungarian Revolution.
1957 Soviets launch Sputnik.
Back to U.S.
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Main Idea
Americans looked for prosperity after World
War II. They also fought communism in the
Cold War.
Why It Matters Now
The U.S. economy grew rapidly, and the
nation’s role in the world expanded after World
War II.
What were the goals of such Cold War programs as the
Containment policy, the Truman Doctrine, the Marshall
Plan, and NATO ?
PROGRAM
GOAL
Containment policy
stop spread of communism
Truman Doctrine
help people fight for democracy
Marshall Plan
help Western Europe rebuild
NATO
form military alliance to defend
Western Europe
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• Why was inflation a concern in the early
postwar period?
• What were the causes of the Cold War?
• Why did the United States experience fear of
communism after the war?
Forming Opinions
Do you think an exaggerated fear of
communism could occur again? Explain.
Think About
• relations between the United States and Russia today
• American attitudes toward opposing views
• beliefs about communism
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Main Idea
The Cold War and the Korean War produced
a far-reaching form of anticommunism.
Why It Matters Now
Reckless charges damaged personal lives and
set up a climate of suspicion that affected
Americans for years.
What were five events that played a part in the Korean
War? When did they occur?
June 1950 North
Korean troops
cross 38th parallel
early in 1951
two sides
deadlocked
November 1950
Chinese troops
enter war
July 1951 truce
talks begin
July 1953
cease-fire
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• Why did war break out in Korea? How did
it end?
• Why was McCarthy able to wield so much
power in the 1950s?
• How did Eisenhower’s approach to the
Cold War differ from Truman’s?
Drawing Conclusions
How was U.S. involvement in Korea
an example of the Truman Doctrine
in action?
Map
Think About
• U.S. concerns about North Korean leadership
• U.S. goals for ending conflict
• the conflict’s outcome
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Main Idea
While the United States was locked in a Cold
War, social and economic changes took place
in American life.
Why It Matters Now
The American economy and popular
culture continue to spread their influence
around the globe.
In what ways was life changing in the United States during
the 1950s?
suburban
living
population
shifts
1950s
American Life
minorities
entertainment
economic
changes
• How did the movement to the suburbs
affect the urban poor?
• What caused the 1950s baby boom? How did the
baby boom contribute to suburban growth?
• How did television affect American
life in the 1950s?
Contrasting
Do you think the American Dream for
most Americans today would be the
same as it was in the 1950s?
Think About
• expectations about suburban/urban living
• changes in transportation and workplace
Back to Home
REVIEW QUESTIONS
ANSWERS: READ AND TAKE NOTES
1 How did the federal government help veterans?
2 Why was inflation a bigger problem than recession in the
postwar period?
3 Why was the fate of Eastern Europe an issue that
divided the Soviet Union from its former allies?
4 How did the Marshall Plan and the formation of
NATO reflect Truman’s containment policy?
5 Why did the United States become involved in the
Korean War?
6 Why were Americans frustrated by the outcome of the
Korean War?
7 How was McCarthy able to gain such a powerful hold on
the government and the American public?
8 What groups were left out of postwar prosperity?
9 What factors boosted the growth of suburbs?
10 Why did Americans become bigger consumers in
the 1950s?
Categorizing
DOMESTIC ISSUES
TRUMAN
EISENHOWER
Labor unions
and big business
Fair Deal
middle-of-the road
policies
Communist
threat at home
Loyalty Review Board
opposed McCarthy’s
attack on the Army
Korea
called on UN to help
defend South Korea
went to Korea; armistice
signed
Communism
in Europe
NATO; Marshall Plan;
Truman Doctrine
brinksmanship
FOREIGN ISSUES
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