US economic & military superiority

• ECONOMIC BOOM IN THE WEST

  • 1970s: USA economy suffered due to oil crises & costs incurred due to the Vietnam War

  • However, West experienced economic boom in 1980s because of economic policies of Ronald Reagan

  • Reagan began process of economic liberalisation

  • Reduced government regulations to encourage trade and innovation in businesses

  • Cut taxes to give people incentive to work harder

  • Reduced social welfare and made them stricter to reduce reliance on the government

  • Britain (Margaret Thatcher) and other Western European countries followed Reagan’s liberalization policies.
• EXPANDING US MILITARY MIGHT

  • Booming economy gave Reagan confidence and ability to renew arms race with the USSR

  • Cold War tensions were restarting

  • Reagan supported anti-communist forces in Afghanistan and Nicaragua

  • Introduced new weapons systems such as the B1 nuclear

  bomber

  • Approved an expensive programme called Strategic Defense Initiative (SDI). SDI planned to use new technologies, such as satellites in orbit to detect and destroy any incoming nuclear attacks by nuclear missile before they can hit their targets
• EXPANDING US MILITARY MIGHT - IMPACT


  • The SDI plans put pressure on the Soviet Union, who was unable to keep up due to its weaker economy and already-stretched resources.

  • The renewed arms race would potentially ruin the Soviet economy

  • Gave the new Soviet leader a strong motivation to end the Cold War.
• RENEWAL OF COLD WAR TENSIONS

  • In 1983, NATO stationed over 100 Pershing II missiles in West Germany

  • These nuclear missiles could be moved easily, and had the range to hit targets in USSR

  • USA held a 10-day joint military exercise with NATO members in Western Europe, code-named ‘Able Archer’

  • Soviet military and government felt threatened due to the Pershing missiles and the ‘Able Archer’ military exercise

  • In response, Soviets prepared their nuclear forces and airforce in

  East Germany and Poland.
• RENEWAL OF COLD WAR TENSIONS

  • ‘Able Archer’ made Reagan realise that his aggressive stance had pushed the two sides closer to a nuclear war.

  • Together with public opposition to the Star Wars Programme, Regan began to rethink his attitude towards the Soviet Union.

  • After 1985, Reagan became more willing to negotiate with the Soviets, improved relations over time just as Gorbachev was reaching out to try to end the Cold War.