TR3.5

The Mid 20th Century Crisis

Houjun Liu 2021-09-27 Mon 12:00

1 WWII and the Rise of the Cold War Tensions

1.1 Causes of WWII: a brainstorm

  • The failure of the treaty of versailies
  • WWI not being as hard and did not destroy the prospects of german nationalism
  • The economic downfall caused by the previous war
  • The rise of the brutal systems of structure throughout the world — i.e. strong alt-right nationalism
  • The ruthless desire to peace
  • The destroying of present systems of the balance of power by higher-level fighting tools

1.2 How not to get a bonus Hitler

  • Weaken individual control
  • Operate under the shared assumption of peacekeeping and democracy
  • Find shared goals and ideals to operate upon
  • Set clear guidelines for treaties and consiquences
  • Build up collective force to be able to enforce treties (up and not limited to the threat of nuclear armegetton)

Under the assumption of global cooperation - Weaking individual economic control

Strategies to prevent - Diminished economic freedom - Co-operation across countries - GIVE PEOPLE NUKES!!!!!! (mutually assured destruction)

Postwar world's rules

  • Constructing economic systems and global market
  • "If you depend on a country for trade, you won't nuke them."
  • => Really, markets are cultivated. The plants are growing independently, but the gardener is responsible for cultivating the garden and preventing weeds

1.2.1 Kensian Capitalism

  • Capitalism is not self-regulating
  • Capitalism need an external structure for making it work well

=> In economic downturns, the govrenment should put money in circulation, in upward economy, the economy should start regulating economy

1.2.2 Neoliberalistic Capitalism

  • Capitalism is self-correcting
  • Inflation is the thing you should fear

=> Goverments will worsen inflation, which is the boogieman, so capitalism needs guardrails against inflation, but generally they will self-correct and so leave them to self-correct

1.3 Global Market: Bretton Woods Agreement

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United Nations: facilatete diplomatic exchange

IMF = create and loan out short-term trade deficits and regulate exchanges

World Bank = roll infrastructure loans to countries for the long economic development

To standardize, everything is pegged against the dollar, which is pegged against $36/oz.

This post-war order allows effective stability and balance


1.4 Postwar World

If you have two powers, they almost always result in some form of conflict.

"The attitutes around the constrsuction of the post-war world lead to the need for a global hegemone that ensures stability." And, at that moment, the United States is the target to achieve that hegemony.

The United States posted the most likely hegemone, but becaues the soviet union refused to take place in that hegemone, they became their own system

Allie meetings at Tehran, Yalta, and Postdam

  • Germany will be occupied by US, UK, France, and USSR
  • Korea will be occupied by the US and USSR for the moment, but it will eventually be turned over

The united nations failed to fufill its final goals: became a forum instead of a dicipline body

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Features of the USSR: that the leadership have unchecked power to act without the support

Both sides believe that the other side will collapse under its own weight.

Used to keep out western influence

  • To keep control of their own populatino
  • To hasten the collapse of western democracy

The civil rights movements picked up heat in the united states: that the collective realization that the USSR attempted to foment racial anger in the United States.

Moderate-left group excluded communists, but they were the most "brave" to stand up to societal injustices

2 Globalization + End of CW

  • Attitudes of capitalism different than that of the past
  • Transformation leads to reconfiguration of capitalism

There were general optimizism regarding post-cold war globalization. But nowadays "globalization" is more cynical.

Fukayama's dialectical model of history: that Liberalism is the endpoint for all government. => for Karl Marx, its the promise that communism will rid of class troubles. For Fukuyama, its the promise that liberalism will rid of ideological confilicts.

2.1 Globalization + Liberalism

Globalization => increased attetion about the relationshiyp btween nation states and the markets

Neoliberalism => a politicial project to promote pro-market supply-side policies; by giving people more market access, one is able to alleviate the conditions of poverty. "Markets Fundimentalism": markets and only markets are the agents of individual liberalty and social progress. Market economy as the absoulte

IMF + others tried to push forward the change to neolibral capitalism


Progress requires destruction and pain: society can't progress without accepting the suffering that progress produces.