The Cold War
The Cold War
1945-1993
Intro.
The Soviet Union was created by Communist
revolutionaries after they took over the Russian
Empire in 1917. The United States and the Soviet
Union were allies during WWII. Immediately after
1945, however, they became rivals in a Cold War.
The war was “cold” only in the sense that the two
superpowers never fought one another directly in
open warfare. However, their global competition
led to frequent crises and conflicts on every
continent.
The Roots of the Cold War
The roots of the Cold War lay in the differences
between two political and economic systems – the
democratic, capitalist system of the United States,
and the dictatorial communist system of the Soviet
Union. When WWII ended, the United States and
the Soviet Union each sought new opportunities to
spread its system and way of life. Each country
looked with suspicion and alarm at attempts but
the other country to spread its beliefs. Many
Americans became convinced that communists
were trying to take over the world.
Features of Capitalism
• Private Property. People have a right to own
property(possessions, factories, farms,
businesses) and to use their property as they
see fit.
• Free Enterprise. People are free to open any
business and to buy or sell any legal product.
Businesses can do anything legal to attract
customers – lower their prices, provide better
quality, advertise, etc.
Features of Capitalism
• Profit Motive. The ability to make profits
(what remains after the costs of businesses
are paid) is an important reason why people
risk their money to start a new business.