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U.s. DOMESTIC AFFAIRS

FROM 1945 TO THE 1980sIn 1945 much of Europe lay in ruins. economies and political systemshad been shattered, and millions were displaced. Asia too had been abattleground. The United States occupied Japan, China was poised torevert 10 civil war, and Southeast Asia and the Korean peninsulawould soon be divided between communist and anticommunist groupsand governments. The war had taken approximately 50 million lives.and had cost hundreds of billions of dollars. It had taken its toll on theUnited States as well. which suffered over 1 million casualties, ofwhich 300,000 were killed in action. In monetary terms, it had cost weBover $300 billion. In many ways. however, the United States emergedfrom the war more powerful in political and economic terms than theother combatants. To be sure, the number of Americans killed wasstaggering, but it pales in comparison with the Soviet Union's losses­approximately 8 million civilians and 14 million soldiers. Many nationsin Europe and Asia had experienced invasion as well; the continentalUnited States was untouched by such an experience during the war.The United States had furthermore entered the war as an internationalpower and emerged a superpower, the only nation in the world at thattime with a nuclear arsenal.

Numerous problems lay ahead for the United States despite itssuccess in the war and its healthy condition relative to other nations.President Roosevelt had died in April 1945. just weeks before thesurrender of Germany's Third Reich. The vice president was theuntested and seemingly inexperienced Harry Truman. His task wasdaunting. The United States and its allies would first have to defeatJapan and then decide how to integrate millions of service membersback into the economy. Demobilization was not the only economicconcern; reconversion from a war to a consumer economy would alsopresent a considerable challenge. As Americans adjusted their lives to

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