Topic > Struggle Between the Superpowers: Causes and Impacts of the Cold War

Communist countries had a planned economy that made most of the decisions. Democratic countries, on the other hand, had a market economy in which private consumers and producers made most economic decisions and owned most property. During the Cold War period, most of the money was used to develop nuclear weapons, build alliances, make treaties, and stop suspicious activities, such as the Cuban Missile Crisis. Even though a lot of money was used, countries benefited from the fact that they were becoming more powerful and industrialized. The Soviet Union and the United States were turning into more and more powerful countries, but they were investing in their country's progress rather than social problems, which damaged the economic system.