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Chapter 39 - The Cold War Begins

NSC-68

First drawn up in 1950, NSC-68, or National Security Council Memorandum Number 68, was buried until the Korean crisis later that year. This document suggested that the U.S. could afford to spend upward of 50% of its gross national product for security.

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Fair Deal

Made by Truman in his 1949 message to Congress. It was a program that called for improved housing , full employment, higher minimum wage, better farm price supports, new TVA's, and the extension of social security. Its only successes: raised the minimum wage, better public housing, extended old-age insurance to more people.

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National Security Act

Passed by Congress in 1947 and it created the Department of Defense. It also established a National Security Council (NSC) to advise the president on security matters and a Central Intelligence Agency (CIA) to coordinate the government foreign fact-gathering.

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Marshall Plan

Issued in response to the struggling European countries, the Marshall Plan would allow the U.S. to give financial assistance to certain countries. This was done to prevent communism from rising in countries like France and Italy, whose economies where suffering after WWII. It was agreed in July 1947 that the U.S. would spend $12.5 billion, over four years, in sixteen different nations. In order to receive financial assistance you had to have a democratic government.

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