¶ … Tear down that wall," has been the one sentence legacy of Ronald Reagan's presidential administration (Boyd). Ask any conservative political pundit and you are likely to hear that Reagan's defense strategy and, in particular, his Strategic Defense Initiative (SDI), was the direct cause of the Berlin Wall coming down, the collapse of the Soviet Union, and the eventual end of the Cold War. Yet, in reality, how instrumental was Reagan and his policy in these occurrences or was the actual cause due to other factors?
Reagan, unlike his predecessors, Jimmy Carter, Gerald Ford, and Richard Nixon, adopted a much sterner posture relative to relations with the Soviet Union. Reagan entered office initially on the coat strings of President Carter's problems with the Iran hostages and Reagan campaigned on the strength of his strong militaristic positions. When Reagan entered office the Cold War was forty years old. The Soviet Union and the United States has spent four decades trying to outspend and surpass the other in building up its respective weapons warehouse. The build-up was expensive for both countries and it was just a matter of time before one or both decided that this pattern had to be broken.
Interestingly, it now appears that the Soviet Union had decided long before Reagan had come into office that they were no longer committed to trying to outspend and out build the United States when it came to military items. Based on information Central Intelligence Agency estimates there had been no corresponding build up or spending by the Soviet Union in an effort to keep pace with the United States since the beginning of 1980. None of the spending by the Carter administration or Reagan's SDI spending had any impact on the Soviet Union's spending levels (Noren). There may have been shifting of spending by the Soviets as a defensive measure in response to the SDI but there was no indication that the Soviets allocated any new funds.
Reagan SDI proponents argue that the introduction of this program served to bankrupt the fragile Soviet economy but a review of the Soviet defense spending in last days of the Cold War do not reveal any measureable decline in the monies allocated by the Soviet government for defense. CIA estimates indicate that such spending remained constant throughout the period of the 1980s and that there is no marked decrease in Soviet military spending until 1989 and even this reduction was proportionally much less than overall government spending.
The Cold War was always more taxing on the Soviet government than it was on the United States. The United States economy had been developed over a period of many years while the Soviet economy was trying desperately to catch up to that of the United States. The Soviet Union did not come into existence until after the First World War and it suffered greatly from the effects of the Second World War (Collins). Meanwhile, the United States economy actually benefited from the effects of the Second World War as it helped pull the nation out of the throes of the Great Depression. The Soviets knew as early as 1970 that they could not financially afford to keep pace with the United States. Certain members of the Supreme Soviet warned General Secretary Leonid Brezhnev that the Soviet economy could not survive dedicating such a large portion of its resources to military spending. Brezhnev, whose political support was heavily dependent on the military and the industries serving the military, ignored the soothsayers and continued the military build-up.
So if Reagan's defense posture and initiation of the SDI did not cause the Soviet economic break down what was the cause and what effect did the SDI have? In light of the fact that economy of the Soviet Union was not the only economy suffering from the effects of their military budget other causes must be examined. At the time of the Soviet Union's collapse Israel, Taiwan, and North and South Korea were all heavily burdened by their defense budgets and yet several of them were actually thriving economically at the time that the Soviet Union finally collapsed. A far more plausible explanation is that the Soviet economy was doomed from nearly the beginning due to the basic flaws in the philosophies upon which it was built. Beginning in the early 1930s, Joseph Stalin introduced the concept of the "command economy" which did not reward either individual or collective effort. Under this system the decision makers in the Soviet economic system were immune from any complaints by the consumers. Production decisions were made in a vacuum and market concerns were virtually ignored. At the time...
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