How Did The Cold War Affect The Economy
Time Period 8 Study Guide
1. The economic growth following World War II was caused primarily by the efforts of the president and the federal government in response to fears about another Great Depression as 1946-1947 put America into a postwar recession. The Servicemen’s Readjustment Act of 1944, otherwise known as the GI Bill of Rights, allowed the 15 million veterans returning from the war to continue their education through government grants. The federal government also allowed veterans over $16 billion in loans in order to start new businesses. The GI Bill allowed millions of workers to learn new skills and become better educated and started new businesses while reducing the competition for jobs in society. Truman also issued the Employment Act of 1946 which included a bill that obligated the U.S. government to maintain full employment and an increase in minimum wage. NSC-68 established by the National Security Council in 1950 gave rise to an increased spending in the defense sector (20% of GNP) which led to increases in the standard …show more content…
The United States foreign policy during the Cold War was containment, specifically of communism since Americans were still afraid of another Red Scare. The Marshal Plan enacted by president Truman provided financial aid to European countries. Encompassing 16 countries, the marshal plan allocated $13 billion to support Europe, preventing economic depression or recession and ensuring that Europe would not turn to communism as a result. Truman’s Truman Doctrine also changed the way America acted with foreign countries and allowed America to assist free nations who are resisting communism. One example of this would be the Berlin Airlift as the Soviet Union sought repercussions from Germany and wanted to prevent them from gaining power, so the Soviets invaded Germany. The U.S. saw this as communism spreading and worked with other European nations (Great Britain, France) in order to support Germany and prevent communism from
1. The economic growth following World War II was caused primarily by the efforts of the president and the federal government in response to fears about another Great Depression as 1946-1947 put America into a postwar recession. The Servicemen’s Readjustment Act of 1944, otherwise known as the GI Bill of Rights, allowed the 15 million veterans returning from the war to continue their education through government grants. The federal government also allowed veterans over $16 billion in loans in order to start new businesses. The GI Bill allowed millions of workers to learn new skills and become better educated and started new businesses while reducing the competition for jobs in society. Truman also issued the Employment Act of 1946 which included a bill that obligated the U.S. government to maintain full employment and an increase in minimum wage. NSC-68 established by the National Security Council in 1950 gave rise to an increased spending in the defense sector (20% of GNP) which led to increases in the standard …show more content…
The United States foreign policy during the Cold War was containment, specifically of communism since Americans were still afraid of another Red Scare. The Marshal Plan enacted by president Truman provided financial aid to European countries. Encompassing 16 countries, the marshal plan allocated $13 billion to support Europe, preventing economic depression or recession and ensuring that Europe would not turn to communism as a result. Truman’s Truman Doctrine also changed the way America acted with foreign countries and allowed America to assist free nations who are resisting communism. One example of this would be the Berlin Airlift as the Soviet Union sought repercussions from Germany and wanted to prevent them from gaining power, so the Soviets invaded Germany. The U.S. saw this as communism spreading and worked with other European nations (Great Britain, France) in order to support Germany and prevent communism from