AP® United States History · Unit 8 · Topic 8.15

America in 1945 Against America in 1980

In 1945 the United States stood as a confident, victorious superpower with a booming economy; by 1980, Vietnam, Watergate, and stagflation had left Americans far more distrustful of their government and institutions.

In 1945 the United States had just helped win a world war, held sole possession of the atomic bomb, and commanded the largest economy on earth. Government had grown enormously to fight the war, and most Americans trusted it to keep delivering: jobs, growth, and global leadership. That trust held through the 1950s and into the mid-1960s, a stretch historians call the postwar consensus, when both parties broadly accepted anti-communism abroad and a managed capitalist economy at home, and the federal government kept expanding its reach through the GI Bill, highway building, and eventually Johnson's Great Society.

By 1980 that confidence had cracked. The Vietnam War dragged on for years, cost tens of thousands of American lives, and ended in a withdrawal that looked nothing like victory. Watergate showed a president, Nixon, using the machinery of government to spy on and sabotage his political opponents, then resigning rather than face impeachment. Stagflation, the combination of high inflation and high unemployment, baffled economists who thought one usually came down when the other went up, and it made the federal government look powerless to manage the economy it had once seemed to master. Each crisis chipped away at the assumption that Washington knew what it was doing.

Calling 1945-1965 a consensus hides how contested it actually was. The Red Scare split Americans over how far anti-communism should reach into private life. Civil rights activists faced violent resistance while the federal government moved slowly and unevenly. Vietnam itself grew out of consensus-era containment policy before it tore the consensus apart. The suburb, the Cold War, and civil rights are one story: all three ran through the question of who got to share in American prosperity and power, and by 1980 that question was wide open.

Key terms

Postwar consensus
The rough agreement from 1945 to the mid-1960s between both parties on anti-communism abroad and managed capitalism at home.
Stagflation
An economic condition combining high inflation and high unemployment at the same time, which struck in the 1970s.
Watergate
The scandal in which Nixon's administration spied on political opponents and covered it up, ending in his 1974 resignation.
Containment
The Cold War strategy of stopping the spread of communism, which led the United States into Vietnam.

Watch it explained

  1. How it worksCompare the federal government's size, reach and popularity in 1945, 1965 and 1980.
  2. Common mistakeWhy isn't the postwar consensus a period when Americans actually agreed about most things?
  3. Going furtherWhat changes about the period if the Vietnam escalation had never happened?
  4. Ties togetherHow do the Cold War, the suburb and the civil rights movement turn out to be one story?

Check yourself

Your turn1 of 2
In 1945, the United States emerged from World War Two with tremendous national confidence, a booming economy, and a sense of global leadership, while by 1980 the country had endured Vietnam, Watergate, and stagflation, leaving many Americans considerably more skeptical of their government and institutions. What sequence of developments most directly explains this shift in national mood?

End of topic.