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( bright music)

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You might believe in destiny

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(crank)

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But if you ask me, and I'm glad you did,

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there is one powerful force that drives human behavior,

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changes the world, money.

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(coins rattling)

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(dramatic music)

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(violin music)

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This Trident Nuclear Missile, with it's multiple warheads

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could obliterate up to half a dozen enemy cities

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all for the low low price of 70 million dollars a missile.

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That is a fraction of what our military currently spends

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on bands, but the Reagan administration wanted something

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a little flashier, you know, and lot more expensive.

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So for example, the B2 stealth bomber,

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couldn't go as far as this missile,

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couldn't do as much damage, was easier to deter,

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but man it was intimidatingly expensive.

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At 2 billion dollars a plane, it might have been cheaper

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to build each one out of solid gold.

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It was as if we were trying

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to bling the Soviet Union into submission.

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(dramatic music)

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Comprehending the trillions of dollars and rubles

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spent on the military during the cold war,

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is like trying to count the stars in Heaven.

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(dramatic music)

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No mere number, no matter how many zeroes,

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can convey the scope.

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(missile launching)

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I was born in the middle of the cold war,

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and I lived to see it end.

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I was taught it was a struggle between good and evil,

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freedom and tyranny, but follow the money,

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and it leads straight to the corner store.

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(chanting)

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Once the Soviet people got a taste of

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our blue jeans and silk stockings and fast food,

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it was no contest.

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(dramatic music)

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They had always been told, we know,

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through Soviet propaganda that Americans live terribly,

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and we have terrible race problems

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and people are impoverished,

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and we're all slaves to our capitalist masters,

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but then they got a glimpse of

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what our supermarkets are like,

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and they're like, wait a minute, that's fantastic,

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Right, when the information starts to flow,

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you can only hold of information for so long,

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and when real live information began to come

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into the Soviet Union about living standards,

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whether it was the US or just simply West Germany,

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it was stunning to people.

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They realized that these are places

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that are not on the verge of collapse,

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that are not at war with themselves.

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They actually seem to be quite peaceful

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and quite prosperous and wouldn't it be nice

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to get a little of that.

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Yeah so in a weird way the Cold Way came to an end

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because people wanted a better choice of breakfast cereal.

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Yes, exactly and maybe a spare roll of toilet paper.

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Eisenhower presided over the first decade

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of the Cold War, even as he warned about it's dire cost.

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Every gun that is made,

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every warship launched, every rocket fired

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signifies a theft from those who hunger

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and are not fed, those who are cold

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and are not clothed.

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This world in arms is not spending money alone,

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it is spending the sweat of it's laborers,

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the genius of it's scientist,

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the hopes of it's children.

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Such honesty would soon become political death,

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denounced as weakness, or worse, disloyalty.

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No mere president could halt the juggernaut

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of defense spending.

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(patriotic music)

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By 1959 it consumed over half the federal budget.

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For decades the arms race generated trillions in profits.

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Governor Ronald Reagan....

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Then in 1980, Ronald Reagan was elected president,

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thanks in part by promising

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to dramatically increase defense spending.

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If you have the means to defend

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your freedom, you won't have to use those means.

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And that's what we're all aiming at.

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Reagan wanted victory over the Evil Empire,

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and he saw a way to get there, bankrupt them,

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spend more than they could ever match,

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as he wrote in his diary,

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if we can cut off their credit

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they'll have to yell Uncle or starve.

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Soviet citizens had long endured a horrendous standard

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of living, only one in three apartments had hot water,

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only one in ten people had a telephone,

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and the waiting time for a new apartment was fifteen years.

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The state run economy was a joke, literally.

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As the saying went, we pretend to work

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and they pretend to pay us.

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You have an enormous military budget,

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20 percent, by some measures, 20 percent of GDP

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in the Soviet Union is going to this huge military,

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that will not budge when it comes to the budget,

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they're not gonna give an inch on that,

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And we often forget this, that they had their own Vietnam,

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long drawn out war in Afghanistan in the 70s and early 80s.

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Which plays into the political part of it,

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so it's not just a collapsing Communist economy,

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it's a collapsing political order,

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so they invade Afghanistan in 1979,

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thinking it's going to be quick and easy,

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and it turned out to be a disaster.

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(rumbling)

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(dramatic music)

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Soviet troops would spend nine miserable years

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in Afghanistan, stuck in a bloody stalemate

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with local guerrillas.

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(softening music)

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(clapping)

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Mr. Gorbachev wants to bring the Communist

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party up to date, it's old fashioned methods of

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blocking his reforms at home and abroad.

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In 1985 Mikhail Gorbachev took the reins of power,

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after years of doddering commissar and apparatchiks,

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here was a man in the mold of western politicians.

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Gorbachev knew his country had to modernize.

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He introduced Glasnost, a new openness,

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but a little freedom can be a dangerous thing.

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When you have Glasnost right at the time

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when there's a lot of simmering discontent,

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people are furious about the economy

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they're furious about the corruption,

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they're furious about the inadequate supply of everything.

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They're also furious about the war,

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the tremendous anti-war opposition,

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and when you allow people to freely discuss that

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and publish that and then

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have external sources of information,

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dissident writers and things,

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it is a recipe for disaster.

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(Russian music)

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In 1990, journalist David Remnick attended

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a screening of the movie Wall Street in Moscow,

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now Oliver Stone intended the movie

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to be an indictment of reckless greed,

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but it didn't play that way.

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To the Russians it was like affluence porn.

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Look at that guy, he had tailored shirts,

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and really expensive hair, he had a TV in his limo.

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When he parked it at home, he had a house with a TV,

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with a car with another TV inside it.

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When Michael Douglas says his immortal line,

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meant to demonstrate his dark twisted soul,

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the Russians exploded in applause, greed is good,

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or as he was dubbed in Russian, zhadnost' eto khorosho,

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zhadnost' eto khorosho.

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(upbeat music)

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Russians had discovered the delights of capitalism,

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they no longer feared the west, or their own leaders.

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The Soviet Union was essentially a third world economy

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boosted by petrol dollars, but in the late 80s,

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Saudi Arabia, encouraged by the US, drastically increased

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it's oil production and cut prices by two thirds.

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Soviet oil revenue plummeted.

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The two fellas in the Soviet Union

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were walking down the street and one of them says

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have we really achieved full communism,

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is this it, is this now full communism,

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and the other one said, oh hell no,

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things are going to get a lot worse.

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(laughter)

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The truth could no longer be masked by lies.

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Communism had utterly failed to provide

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a minimum standard of living.

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One Soviet economist remarked, for decades we've strived

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for universal equality, now we have equality in poverty.

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(dark music)

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The final nail in the Soviet coffin,

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was a fantastic futuristic vision.

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(missile launching)

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What if free people could live secure

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in the knowledge that their security did not rest

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upon the threat of instant US retaliation

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to deter a Soviet attack, that we could intercept

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and destroy strategic ballistic missiles

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before they reached our own soil, or that of our allies.

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(space music)

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Reagan's strategic defense initiative, or SDI,

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was immediately dubbed Star Wars.

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The nickname conjured up real images,

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well real fake images from movies

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that made it all the more plausible.

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(dramatic music)

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The flight was the first in a series of test

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flights that will use a kinetic energy Aris Interceptor

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to destroy a simulated enemy warhead.

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We have these missiles that they couldn't stop

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and they have these missiles that we couldn't stop

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so nobody was going to go to war.

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Yeah mutually assured destruction

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Right and then all of a sudden we're saying,

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Aha, we've got this system, this incredibly expensive system

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that will stop your missiles and that

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will totally shift the balance of power,

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and that sent the Soviet Union into kind of a panic

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Right

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A quick look assessment of the first

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Aris Interceptor test flight,

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indicates it was a successful mission.

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(orchestra music)

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The White House doled out the goodies,

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contracts worth billions were awarded to companies

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in no less than 40 states.

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That leftist rag the Wall Street Journal reported

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the most effective support for Star Wars

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is being generated by good free enterprise greed

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(laser shooting)

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Whether or not SDI ever worked,

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Gorbachev believed it could

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and he knew he could never muster

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the resources to compete with it.

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(fast music)

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The United States, Gorbachev told his people

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wants to exhaust the Soviet Union economically,

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through an arms race in the most up to date

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and expensive space weapons.

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There's also a huge technological gap,

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by 1980 the personal computer revolution is on

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in the United States and we often sort of forget

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how revolutionary that was in everything,

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economics, education, information systems and so forth.

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And the Soviets were whetted to these 1960s gigantic,

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building sized IBM like computers,

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so they weren't able to make that,

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they knew they couldn't make that shift.

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Desperate to cut costs, Gorbachev devised a brilliant

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last ditch gambit, he offered to cut nuclear arsenals

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in half if the US dropped SDI

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(alarms)

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Panicked, the American Defense Industry

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went on red alert.

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It was a doomsday scenario, the loss of trillions

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of dollars from Star Wars and nukes.

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The military industrial complex went into overdrive

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to stop Reagan from taking the deal.

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Air Force One touched down

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at Keflavik Nato Base in Iceland tonight

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carrying Ronald Reagan on the twentieth

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and potentially most important foreign journey

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of his six year presidency.

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After nerve wracking suspense,

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the Reykjavik Summit ended in failure.

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Order had been restored.

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(chanting)

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Soon after in 1989 one Eastern Block country

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after another broke free from the Soviet Empire.

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(cheering)

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In Russia Gorbachev gave way to President Boris Yeltsin.

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(gunfire)

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That same year half a million American troops

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descended on the Persian Gulf.

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The United States and Russia joined forces

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to liberate oil rich Kuwait from

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the clutches of Saddam Hussein.

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(explosions)

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Listen to Master Sergeant J.P. Kendall

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of the 82nd Airborne,

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We're here for more than just the price of a gallon of gas

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what we're doing is going to chart the future of the world

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for the next hundred years.

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It's better to deal with this guy now,

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than five years from now.

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(dramatic music)

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American forces would soon spend two decades at war,

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from Moscow to the middle east, capitalism had won,

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but it would always, always keep fighting.

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A few months after the fall of the Soviet Union,

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Gorbachev attended the 75th anniversary celebration

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for Forbes magazine at Radio City Music Hall.

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He and Ronald Reagan both appeared to demonstrate

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their historic friendship and also because

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they were each paid two million dollars.

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Meanwhile, new Russian President, Boris Yeltsin,

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was trying to keep his country from staggering,

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as much as he did, now Yeltsin had grown up with

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Soviet Communism and was still a true believer.

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He thought capitalism was this savage system

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where all the wealth was horded by the elite,

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while the proletariat suffered.

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And then he took a trip to Houston

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and visited a supermarket, a proletarian supermarket.

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And he was amazed at all the fresh meat

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and produce and fish,

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the twenty different kinds of spaghetti sauce.

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He saw shapes of pasta, heretofore undreamt of by man,

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not even the czar himself had imagined such riches.

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On the flight back to Moscow,

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Yeltsin turned to his closest aid and quietly confessed

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that he was no longer a communist.

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Boris Yeltsin had learned to follow the money.

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(Russian music)