( 4 ) In terms of the economic impa ct on domestic policy, enormous growth spurred by industries related to war was aided by heavy government expansion. ( 3 ) During the Cold War period, there was also a struggle for control of education which one could argue almost mirrors the socio-political and cultural conflict that was being waged on a national level during this period. Furthermore, there was a striving for unity and cohesion which can be broadly encapsulated by the term ‘Americ anism’ and is often referred to in an anti-communist context. T he intensive indoctrination of the American people led to a regression of social reforms especially regarding civil rights, labor unions, working conditions, and women’s concerns. The Cold War affected domestic policy in two ways: socially and economically. American allies depended almost exclusively on their stance on communism which was similarly applied to domestic policy. In scaring 'the hell out of the American people ', Truman unleashed a fervor that would become part of American life and modify existing relationships with the outside world. The Cold War's rhetoric and anti-communist propaganda dictated foreign policy. Furthermore, it is imperative to acknowledge that t he Soviets never received any monetar y assis tan ce. Congress feared a return to recession and misuse of funds and placed drastic limits on lend-lease support pointing out that requests for loans after the war would meet deep uncertainty. As the war ended, enthusiasm turned to skepticism when American diplomats perceived a toughening of Soviet policy.

From the Soviet perspective, American interests easily persuaded Stalin to petition for a loan ran ging from $1 bi llion in 1 943 to $10 b illion in 1 945.

However, the issue of European economic reconstruction was entirely in the hands of the Americans, who posse ssed the strongest economy during and after the conflict. The American ideology was that a strong German industry would be a key to postwar commerce and trade releasing the United States from supporting the German economy for an extended period. Interestingly, American business interests and policymakers agreed but with differed reasoning. The Soviets argued that a pastoral Germany would be unable to make war reparations.

Why was it called the cold war quizlet