Cold War and Its Effects Essay

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The end of the cold war signified a new era of history that has changed the entire world. The face of Europe and Asia has changed dramatically. Vast changes have been felt socially, politically, and especially economically. Also the effect the cold war had on foreign policy was paramount. The effect of these changes is not only felt across the ocean but can be felt here in America. The goal of this paper is to define what the cold war specifically was, and reflect upon the various choices throughout the world as a result of the end of the cold war.

The cold war was a period of time in which the United States was the world power in the western world. The Soviet Union (now Russia) was the leading power in the eastern world. While
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Sometimes these decisions were not for the well being of other nations that depended on the Soviet Union for support. Nations like Hungary, Bulgaria, and Poland were under Soviet control, but were officially still independent nations.

These extreme opposite viewpoints between the two superpowers caused immense tensions between the two nations and the world. The world was split in two in terms of who to support and which way of life was better. At the height of the cold war in the 1980's, President Reagan had vowed to outspend the Russians. I remember as a child Reagan coming on television and strategically showed the world how we were outspending the Russians. I did not realize at the time the importance of this news conference because two years later the wall fell in Germany and many nations such as Lithuania that were considered part of the USSR had been freed.

Outspending the Russians had consequences both good and bad on the economy here in America. The good thing is that up until black Monday stock prices rose sharply, as the government was spending money subcontracting military applications to private firms such as Boeing, Lockheed, and even investing in the latest computer technology at that time, which the Soviets just could not keep up with.

Interest rates were extremely high in the early part of the 1980's due to Reagan's foreign policy efforts to get rid of communism. The amount of interest rates was

nowhere near
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