Cold War Essay

637 Words 3 Pages
Cold War

How did the cold war affect economic development in Europe, Asia and the U.S.? How did the “Welfare State” in Europe and the “Consumer Culture” in the U.S. relate to cold war developments? Include in your discussion the Soviet (command) and Western (market) economic models and the “commodity gap” v. “missile gap”.

One country in Europe that was affected by the cold war was the economic development of Germany. The cold war made Germany an economic powerhouse. Germany’s coal and steel were assisting the French industry and lower countries as well. Western Europe was becoming very competitive with the U.S. in industry and
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The Japanese lacked food and raw materials. Bankruptcies and unemployment increased and the country eventually fell into recession.

The welfare state in Europe relates to the cold war because shortly after the cold war, the economy began to grow. Health insurance systems were introduced. Social democratic parties were formed, social continuity enforced. The right to welfare and economic growth helped to boost Europe’s economy. More jobs were created as a result of the cold war.

The consumer culture in the U.S. relates to the cold war by the growth of cities, decline in death and birth rates, automobiles and television sets were introduced with the U.S. being dominant in and possessing television sets. Credit cards made spending easier. The consumer culture began to spread to Western Europe once the cold war had ended. International trade not only gave the U.S. a boost in their economy but also the six countries that made up the European Economic Community.

On reason why the economy of the American West increased was due to “Uncle Sam”. The Federal Government poured a lot of money into various projects, such as federal dam projects. The west also relied on defense related federal funding, for example, the American military and weapons. In 1950, the U.S. was producing more than one third of its goods and services. The poor seemed to be rich in the eyes of others.

For the Soviets, agriculture was a high priority on their list to get their economy back on…

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