Economic effects of the cold war Rating: 9,3/10 821reviews
The Cold War, which lasted from the end of World War II until the collapse of the Soviet Union in 1991, had a significant impact on the global economy. While the conflict never escalated into direct military confrontation, it had far-reaching economic consequences for both the Western and Eastern blocs, as well as for developing countries around the world.
One of the most significant economic effects of the Cold War was the emergence of two rival economic systems: capitalism in the West and socialism in the East. The competition between these two systems fueled an arms race and a space race, as both sides sought to outdo each other in military and technological superiority. The cost of these efforts was staggering, with both the United States and the Soviet Union spending billions of dollars on defense and research and development.
The Cold War also had a major impact on international trade and investment. The Western powers, led by the United States, used their economic and financial leverage to support friendly governments and discourage socialist or communist revolutions. This often resulted in the imposition of economic sanctions and other measures to block trade with countries that were seen as adversaries. At the same time, the Soviet Union and its allies sought to create a self-sufficient economic bloc through the establishment of Comecon, a regional organization that facilitated trade and economic cooperation among socialist countries.
The Cold War also had significant consequences for developing countries, which often found themselves caught in the middle of the conflict between the two superpowers. Many of these countries received financial and military aid from the United States and other Western powers as part of their efforts to contain the spread of communism. However, this aid often came with strings attached, such as the requirement that recipient countries adopt pro-Western economic policies and open their markets to Western investment.
In conclusion, the economic effects of the Cold War were significant and far-reaching. The competition between capitalism and socialism had major implications for international trade and investment, as well as for the economies of both the Western and Eastern blocs. Developing countries were also caught up in the conflict, and their economies were often influenced by the larger geopolitical struggle.
The Effect of War on Economic Growth
Are your grades inconsistent? Ambrose, Rise to Globalism, p. Sanders, Ralph, The Politics of Defense Analysis New York, 1973. The government had to fund the hydrogen bomb from the taxpayers. The short book was a negative critique of capitalism, the economic theory described in 1776 by English economist Adam Smith in his book The Wealth of Nations. Vast changes have been felt socially, politically, and especially economically. These regions are likely to enjoy higher growth rates than America during the coming critical transitional period-perhaps by a substantial margin.
The Effects of the Cold War on the Russian Economy
Huntington, The Soldier and the State, p. This assignment will examine the way in which the Russian government operates and will therefore highlight the political ideologies of the country in order to provide a basis President Putin, Russia 's Current President after the Cold War. That is why during the late 1980s, notwithstanding the preceding buildup, the defense share of GNP never exceeded 7 percent Figure 2 above. Isaacson, Walter, and Evan Thomas, The Wise Men: Six Friends and the World They Made—Acheson, Bohlen, Harriman, Kennan, Lovett, McCloy New York, 1986. The Arms Race caused the distributing of resources to shift primarily towards the military,specifically nuclear testing. Some of them say that the cold war has its roots in the causes of the first world war. Average growth rates of the component shares of real GNP were as follows: real private spending, 3.
The Economic Effects of the Cold War: Conservatism Plus Deficit Spending
Among the several bases for rejecting the usual accounting conventions, the following may be noted. But appreciating the existence of the differences is important for understanding and evaluating the actual performance of the economy during the Cold War. Many Russian affiliations and events are to blame including Russian Mafia, military intelligence, Trading Air, collapse in economy, and disgruntled Nuclear employees. Higgs, Robert, Cato Journal, 8 1988 , pp. The United States and the Soviet Union viewed each other as a threat due to their competition between democratic and communist ideals. Many industries and new technologies were developed in the Europe. The two series exhibit a similar upward tendency.
Effects of the Cold War
Although there were no direct military conflicts between these nations, giving it the name Cold War, several smaller proxy wars fought between allies of each superpower did occur. There were significant economic effects on the United States due to this four-decade period of heightened military tension and international jockeying for allies and influence. Also, some defense purchases originate in other federal departments, for example, the Energy Department previously the Atomic Energy Commission , which purchases goods and services to produce nuclear reactors and warheads for the armed forces. After World War II ended, The United States controlled the western half of Germany and the Soviet Union controlled the eastern half. As a result, currency misalignments and instability have become endemic; large trade imbalances persist; protectionism and neomercantilism have intensified; Third World debt remains unresolved; policy cooperation is ad hoc and fragile.
Despite how much creative the workers were, they always got orders in order to be paid. After 1965 the Vietnam War buildup carried real defense purchases to a mobilization peak in 1968, up by more than one-third. The government nonmilitary share increased during the first two post-World War II military buildups and remained approximately constant during the third. While the Cold War affected United States foreign policy, it also had a great effect on United States domestic policy and on American society. It can clearly do so again if convinced that such change is a national imperative, although the historical record suggests that continued outside pressure will be needed to galvanize such a strategy. Henceforth unless otherwise indicated, all dollar amounts are expressed in 1982 purchasing power. The second question affecting potential economic conflict is how each of the Big Three would relate to the others.
How did the Cold War effect the economy?
But achievement of these crucial changes in each of the Big Three can be promoted, perhaps decisively, by the adoption of new international policy commitments and specific steps to implement them. Although Marx predicted that workers would rise up and overthrow the ruling classes throughout Europe, this did not occur. Due to the bigger effect of the conflict, the the Cold War was the defining episode of the second half of the 20 th century and had effects to varying magnitudes, to almost all American and domestic strategy pronouncements. The positive impact of economic freedom on economic growth is a common finding. When President Truman gave his iron curtain speech, he argued that the United States should support nations trying to resist the Soviet Union. In the second part of the paper I turn more explicitly to issues of political economy. Obviously, conscription gives rise to an accounting understatement of the opportunity costs of military activities, but making a reliable estimate of the amount of the understatement would require research far beyond the scope of the present paper.
A Brief Overview of the Causes and Effects of the Cold War
Our nursing assignment writers will offer you professional nursing paper help at low prices. In the United States after 1948 three mobilizations occurred, during 1950-53, 1965-68, and 1978-87, each followed by a demobilization. Further elaborated are the causes and repercussions of this menacing fracas drawn upon the world by the two superpowers; the United States of America and the Soviet Union. In a perceived crisis, public opinion became volatile. This component of the national income and product accounts is not the same as budgetary outlays of the Department of Defense, which include substantial sums for transfer payments such as military retirement pay and purchases of land. One perfect example of this is examining the relations between the United States and Russia. Eisenhower as quoted by Huntington, The Common Defense, p.
The Cold War: Sociocultural Effects in the United States
There were limits, however, and in the political struggles military interests sometimes lost. By contrast the American share of world output has been halved during the postwar period. In addition, as long as the United States drains resources from the rest of the world, it cannot be a net financial contributor to other countries. The period of peaceful co-existence between East and West that lasted for two decades from the collapse of the Berlin Wall looks to be coming to an end. Indeed America may soon be the only military superpower. The year 1953 looks the same for both measures, but 1954 does not. A second reason was satellite states created by the Soviet Union to serve as a buffer zone against potential future German aggression, via School History The Soviets claimed that they needed a buffer zone between themselves and Germany to prevent any future aggression like the infamous German invasion of 1941.
Economic, Political And Social Effects Of The Cold War: Free Essay Example, 1211 words
First, the reforms in the Soviet Union and Eastern Europe, if successful, will end the Cold War and most East-West confrontation, and will allow substantial reductions in military arsenals. Although historians and scholars maintain different positions regarding the causes of the development of the Cold War and its effects, all concur that the tensions between the superpowers had been accumulating, which were the spark that ignited the flame. At the same time they steered clear of revealing how great the costs would be. In 1989, there was a Soviet withdrawal from Afghanistan and in 1990, the Soviets agreed to the reunification of Germany. Du Boff, Richard B.
Economic aspects of the Cold War, 1962
Among these are civil wars, insurgencies, and other violence involving radical Islamic terrorism. The preferred course is to build in evolutionary fashion on the "reference ranges," the "economic indicators" to guide policy cooperation that were agreed upon at the Tokyo summit in 1986, and the European Monetary System itself. . Next, I examine opportunity costs, identifying how changes in the military share of national product were related to changes in the private share or the government nonmilitary share, both from year to year and over the course of distinct periods of military buildup and cutback. The external events included what was perceived to be a rapid Soviet arms buildup, the Iranian hostage-taking at the U. Peaceful applications of nuclear energy received a stigma that is still too difficult to exercise as it heightens the fear of nuclear risk, which can result in resistance to military drawdown. Rees, David, Korea: The Limited War Baltimore, 1970.