The Arms Race/Cold War Begins

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A map showing how the
plan’s $20B was
distributed by country
GNP, 1950
(billions)
Defense
Spending,
1948
(billions)
United States
$381
$10.9
Soviet Union
$126
$13.1
Britain
$71
$3.4
Germany
$48
$0
Source: Paul Kennedy, The Rise and Fall of the Great Powers.
Winston Churchill gave the
Iron Curtain speech in 1946
Map of the Iron
Curtain
President Truman outlined the
Truman Doctrine to a joint session
of Congress in March of 1947
Impact of NSC-68
Immediate increase in defense spending
FY 1950: Defense budget $14.1 billion
33% of national budget, 5% 0f GNP
FY 1951: Defense budget $33.6 billion
73% of national budget, 10% 0f GNP
Demonstrated American commitment to win the Cold War
Source
Federal Republic of
Germany
Berlin
Blockade
1948- 49
C-47: Used to carry supplies
(3.5 tons each)
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