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Study GuideU.S. History II–The Rise of the Cold War, 1945–19531.The Cold War at HomeThe Cold War did not just shape how the United States dealt with other countries—it also deeplyaffected lifeinsidethe country. After World War II, the Soviet Union went from being a wartime ally tobeing seen as a dangerous enemy. As tensions increased, many Americans began to fear thatCommunists inside the United Stateswere secretly working to undermine the government.Several events fueled these fears. The Soviet Union took control of Eastern Europe, China became aCommunist nation, and in1949, the USSR successfully tested anatomic bombmuch earlier thanexpected. Together, these developments created widespread anxiety and suspicion. From the late1940s through the 1950s, the country experienced a period of intenseanticommunist hysteria, oftencalled theRed Scare.1.1Loyalty Checks and Internal SecurityIn response to these fears, PresidentHarry Trumantook steps to protect national security. In1947,he issuedExecutive Order 9835, which created theFederal Employee Loyalty Program. Thisprogram required background checks for more thanthree million federal employeesto make surethey were loyal to the United States.Although only a little over200 people were fired, about2,000 resigned, often under pressure. Whatmade the program controversial was how vague the standards were. Someone could be labeled asecurity risk simply for being considered “potentially disloyal.” Groups often targeted includedhomosexuals,alcoholics, and people deeplyin debt, even without proof of Communist ties.States and cities soon followed the federal government’s lead. Many required workers—especiallyteachers—to signloyalty oaths, promising they had never belonged to the Communist Party or anygroup seeking to overthrow the government. When the Supreme Court ruled inTolman v. Underhill(1953)that California could not single out university professors, the state responded by requiringallemployeesto take loyalty oaths.1.2The Internal Security (McCarran) ActFear of Communist infiltration increased even more in1950, when Congress passed theInternalSecurity Act, also known as theMcCarran Act. The law required Communists and Communist-frontorganizations toregister with the attorney general, banned Communists from working indefenseindustries, and allowed the government tointern suspects during national emergencies.

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Study GuidePresident Truman vetoed the bill, arguing it threatened civil liberties, but Congress overrode his veto.At the time, the threat seemed real. In1950,Klaus Fuchs, a scientist involved in the atomic bombproject, was convicted in Britain of spying for the Soviets. His case helped lead to the U.S. trial ofJulius and Ethel Rosenberg, who were convicted of espionage in1951and executed in1953. Theircase shocked the nation and strengthened fears of internal betrayal.1.3The House Committee on Un-American Activities (HUAC)TheHouse Committee on Un-American Activities (HUAC)had existed since 1938, but it becameespecially active after World War II. In1947, HUAC focused on theHollywood film industry,investigating whether movies were spreading Communist ideas.Many witnesses cooperated and named others, but a group known as theHollywood Tenrefused totestify. They were convicted ofcontempt of Congressand sent to prison. After the hearings,Hollywood studios created ablacklist, preventing anyone suspected of Communist ties from working,even without solid evidence.HUAC also investigatedAlger Hiss, a former New Deal official and assistant secretary of state. In1948,Whittaker Chambers, a former Communist, accused Hiss of being a spy. Chambers laterproduced microfilm of government documents, which he claimed Hiss had passed to him for theSoviets. Although the evidence was weak, Hiss was convicted ofperjuryfor lying to Congress.The case helped launch the political career ofRichard Nixon, a young congressman on thecommittee. His role in the investigation helped him win a Senate seat in1950and later becomevicepresident.1.4Senator Joseph McCarthyNo figure became more closely associated with the Red Scare thanSenator Joseph McCarthyofWisconsin. In1950, McCarthy claimed in a speech that he had a list of205 Communists working inthe State Department. He never provided proof and frequently changed the number, but hisaccusations gained attention.Several events helped McCarthy gain influence, including theKorean Warand theRosenberg trial.Since most of his accusations targetedDemocrats, Republican leaders often supported or toleratedhim. After Republicans gained control of Congress in1952, McCarthy became chair of a powerfulinvestigative subcommittee.Eventually, McCarthy went too far. When he accused theU.S. Armyof being soft on Communism, theissue exploded into theArmy-McCarthy hearingsin1954, which were broadcast on nationaltelevision. Millions of Americans watched McCarthy’s aggressive and bullying behavior, and publicsupport quickly faded. Later that year, the Senate formallycensuredhim. He died in1957, his careerin ruins.

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Study Guide1.5The Election of 1952By 1952, President Truman was deeply unpopular due to the ongoingKorean War, corruptionscandals, and Communist fears. After losing the New Hampshire primary, he chose not to run again.The Democrats nominatedAdlai Stevenson, governor of Illinois, and selectedJohn SparkmanofAlabama as his running mate to appeal to southern voters.The Republicans faced a choice between conservative SenatorRobert Taftand war heroGeneralDwight D. Eisenhower. Eisenhower won the nomination and choseRichard Nixonas his vice-presidential candidate to appeal to anticommunists.The Republican campaign focused onthree major issues: ending the war in Korea, fightingcorruption, and stopping Communism. Eisenhower’s promise to personally go to Korea resonatedwith voters. Although Nixon faced a scandal involving a campaign fund, his emotional“Checkers”speechsaved his spot on the ticket.1.6A Republican VictoryThe election was alandslide victoryfor Eisenhower. He defeated Stevenson by more thansixmillion votesand won442 electoral votes, including several southern states that had longsupported Democrats. Eisenhower also attracted voters from groups traditionally aligned with the NewDeal coalition, signaling a major shift in American politics.2. Postwar AmericaWhen World War II ended in 1945, the United States was in a powerful position. It had theworld’sstrongest economyand was theonly nation with atomic weapons. After years of the GreatDepression and wartime sacrifice, Americans were eager to return to normal life and enjoy peace. Atthe same time, the U.S. didnot retreat from world affairsas it had after World War I. Instead,growing tension with the Soviet Union led to theCold War, shaping both foreign and domestic policyfor decades.2.1From World War to Cold WarAlthough the fighting ended, peace did not mean global stability. Relations between the United Statesand the Soviet Union quickly worsened. This rivalry, called theCold War, involved political, economic,and military competition rather than direct fighting.

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Study Guide•The U.S. worked tocontain communismby:oForming new military alliancesoGivingeconomic and military aidto democratic nations•At home, fear of communist influence led toanticommunist investigations, especially ingovernment, Hollywood, and the military.•SenatorJoseph McCarthybecame famous for accusing people of being communists withoutsolid evidence, creating fear and suspicion across the country.2.2Demobilization and Economic TransitionAfter Japan surrendered, Americans expected a quick return to normal life—and that is mostly whathappened.•The armed forces shrank rapidly:oFrom12 million soldiers in 1945to1.5 million by 1947•Factories quickly switched from wartime production toconsumer goods.•New cars were already being produced for the1946 model year.The economy absorbed returning veterans better than expected:•Abouttwo million veteransused theGI Billto attend college or job training.•Many women who had worked during the warleft or lost their jobs, making room forreturning soldiers.•Strong consumer demand createdplenty of jobs, preventing the postwar depression manyfeared.Still, challenges remained.2.3Inflation and Labor UnrestThe biggest economic problem after the war wasinflation.•When wartime price and wage controls were lifted in 1946:oPrices rose sharply—nearly 25% overalloFood prices increased even more

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