The Cold War

25. Examine the part played by economic issues in the development of the Cold War

Anna N-D
Topic 5
#25) Examine the part played by economic issues in the development of the Cold War.
1) Introduction
A) Thesis: The economic status—whether capitalist or communist—was the primary division between the US and the Soviets, which developed into the competition that questioned the governments in every nation involved in the Cold War.
2) Differences between economies
A) A capitalist economy goes hand-in-hand with a democratic governing style. The companies compete through privately owned business in which the government has very little role in the pricing and distribution of products. Capitalist usually follow a market economy to trade goods.
i) *privatized business
B) A communist economy holds the ideals of a society without alienation and usually produces a single leader that creates programs that influence the masses.
i) *Collective ownership
3) Economic interdependence- programs created that emphasized the importance of foreign relations that developed during the Cold War intensified conflict.
A) European Union (EU) - regulate steel and coal production in Europe.
i) Free trade association that lowered tariff barriers.
ii) Developed from 1952-1990s
B) Organization of Petroleum exporting Countries (OPEC)- gained power of oil production to set prices and production levels.
i) Can control sales to specific countries (ex. The US in 1973)
ii) Organization formed in 1960.
C) North American Free Trade Association (NAFTA)- fair trade within the Americas to eliminate the tariff barriers.
i) Formed 1993
4) Competition
A) Propaganda
B) Red Scare
i) Showed nation-wide fear of the spread of Capitalism or Communism across the nation in fear of a decline in current economic status.

Paper 2
Topic 5
25. Examine the part played by economic issues in the development of the Cold War.
Alisha Virani

Background:
- Cold War – from 1945s to 1990s.
- Cold War itself was a series of rivalries and competition between US and USSR, concerning ideology, military industrial and economic advancement, etc.

Thesis: The economic issues of both the US and the USSR heavily influenced the development of the Cold War in that it triggered both sides to continue fighting for victory with the hope that it would benefit of their economies.

US economy:
-Capitalist
-Democratic background
-Government is very involved in the works of the economy
-Operations determined through a market economy
-Support of privately owned businesses
-Support of trade

USSR economy:
-Communist
-Dictatorship background
-Economic decisions controlled by a single leader
-Suppression of any opposition
-Support of collective ownership

Military expenses:
-The two countries were fighting for military supremacy
-US: Military expenses caused the US to not have enough funds for other resources that could have been available if the war did not exist
-USSR: Past Soviet military expenses proved to be a burden for the Soviet economy during the Cold War

NAFTA:
-North American Free Trade Association
-lower tariff barriers
-fair trade

Conclusion:
-Economic conflict caused the two countries, the US and the USSR, to keep fighting in order to prove that their economic styles were more beneficial.

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