ROACHBLOG

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Sunday, June 06, 2004
 
Myth #1

I found this while I was busy debunking Reagan myths at Eschaton. It's 10 years old, which actually helps its credibility since it was written prior to the right-wing jihad of the late '90s:
Forty years of arms competition, so the argument goes, brought the Soviet economy to the brink of collapse. The Vatican's Secretary of State, Agostino Cardinal Casaroli, said, "Ronald Reagan obligated the Soviet Union to increase its military spending to the limits of insupportability." When the Soviet Union could no longer afford the competition, its leaders decided to end the Cold War. A modified version of this argument holds that the American military buildup simply worsened the Soviet economic quandary; it was the straw that broke the camel's back. Neither the strong nor the weak version of the proposition that American defense spending bankrupted the Soviet economy and forced an end to the Cold War is sustained by the evidence.

The Soviet Union's defense spending did not rise or fall in response to American military expenditures. Revised estimates by the Central Intelligence Agency indicate that Soviet expenditures on defense remained more or less constant throughout the 1980s. Neither the military buildup under Jimmy Carter and Reagan nor SDI had any real impact on gross spending levels in the USSR. At most SDI shifted the marginal allocation of defense rubles as some funds were allotted for developing countermeasures to ballistic defense.

If American defense spending had bankrupted the Soviet economy, forcing an end to the Cold War, Soviet defense spending should have declined as East-West relations improved. CIA estimates show that it remained relatively constant as a proportion of the Soviet gross national product during the 1980s, including Gorbachev's first four years in office. Soviet defense spending was not reduced until 1989 and did not decline nearly as rapidly as the overall economy.
 
Shouting into the closet to inform and entertain the 10 people who actually read this thing. In our new format as an online magazine, we take pride in our reporting and opinions. Please leave reader feedback on our online magazine message board so that we can better serve you.

“There’s a lot of money to pay for this that doesn’t have to be U.S. taxpayer money, and it starts with the assets of the Iraqi people…and on a rough recollection, the oil revenues of that country could bring between $50 and $100 billion over the course of the next two or three years…We’re dealing with a country that can really finance its own reconstruction, and relatively soon.” -Paul Wolfowitz

Cost of the War in Iraq
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