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It means that it is better to die than to be a communist. It is a phrase reflective of the attitudes of Cold War America, in which many people felt that they would rather have a nuclear Holocaust than have "communists" take over the world. Obviously there were many more options than that.
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What does the saying better dead than red mean?
Red refers to being a communist and the saying is that they would rather be dead than have to become a communist
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