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Authors: Niall Ferguson

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Everyone, it seemed, was in uniform. By 1944 the six biggest combatants had more than 43 million people, nearly all men, under arms. For all combatants, the total certainly exceeded 100 million. That was, at most, between a fifth and a quarter of the population, but it was still a far larger proportion than at any time in modern history, before or since.
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More than 34 million Soviet citizens served, 17 million Germans, 13 million Americans, nearly 9 million loyal subjects from all over the British Empire and 7.5 million Japanese. Young men from those countries who did not end up in government-issue (hence ‘GI’) clothes were a minority. As a result, a vast proportion of the world’s textile industry was given over to the manufacture of military uniforms. What people did in these uniforms varied widely. The majority of Germans, Japanese and Russians were involved in some form or other of lethal organized violence. The majority of Americans
and British were behind the lines, leaving the combat to an unlucky minority. The war against Germany was won by a combination of British intelligence, Soviet manpower and American capital; the British cracked the German codes, the Russians slaughtered the German soldiers and the Americans flattened the German cities. Victory over Japan was preponderantly though not exclusively the achievement of the United States, whose Manhattan Project (named after the Manhattan Engineering District where it began in 1942) produced the three war-ending and world-changing atomic bombs tested in New Mexico and dropped on Hiroshima and Nagasaki in 1945.

Inspired by Albert Einstein’s warning to Roosevelt that the Germans might be the first to develop such a weapon, and propelled forward by the British discovery of the fissile properties of the isotope uranium-235 – the significance of which the Americans were slow to grasp – the atomic bomb was an authentically Western achievement. The scientists who devised it were of multiple nationalities: Australians, Britons, Canadians, Danes, Germans, Hungarians, Italians and Swiss as well as Americans. Many (notably Otto Frisch and Edward Teller) were Jewish refugees from Europe, reflecting not only the disproportionate role played by Jews in every area of intellectual life since the emancipation that had followed the French Revolution,
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but also the cost to the German war effort of Hitler’s anti-Semitism. Two were Soviet spies. It may seem odd to identify the A-bomb as one of the greatest creations of Western civilization. Though it dramatically increased the capacity of man to inflict death, the Bomb’s net effect was to reduce the scale and destructiveness of war, beginning by averting the need for a bloody amphibious invasion of Japan. To be sure, it did not abolish conventional warfare; no sooner were the 1940s over than another big and bloody war of planes and tanks was
under way in Korea. But the atomic bomb, and even more so the vastly more destructive hydrogen bomb tested in 1952 (and a year later by the Soviets), circumscribed that war and all subsequent conflicts, by deterring the United States and the Soviet Union from colliding head on. All the wars waged by the two superpowers, as they came to be known, were limited wars waged against, and sometimes through, proxies. Though the risk of a nuclear war was never zero, with hindsight we can see that the age of total war ended with the surrender of Japan.

If the Cold War had ever become hot, the Soviet Union would very likely have won it. With a political system far better able to absorb heavy war losses (the Second World War death rate as a percentage of the pre-war population had been fifty times higher than that for the United States), the Soviet Union also had an economic system that was ideally suited to the mass production of sophisticated weaponry. Indeed, by 1974 the Soviets had a substantially larger arsenal of strategic bombers and ballistic missiles. Scientifically, they lagged only a little way behind. They were also armed with an ideology that was a great deal more appealing than the American alternative in post-colonial societies all over what became known as the Third World, where poor peasantries contemplated a life of drudgery under the heel of corrupt elites who owned all the land and controlled the armed forces.
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Indeed, it could be argued that the Soviets actually won ‘the Third World’s War’. Where there was a meaningful class war, communism could prevail.
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Yet the Cold War turned out to be about butter more than guns, ballgames more than bombs. Societies living in perpetual fear of Armageddon nevertheless had to get on with civilian life, since even the large armies of the 1950s and 1960s were still much smaller than the armies of the 1940s. From a peak of 8.6 per cent of the population in 1945, the US armed forces were down below 1 per cent by 1948 and never rose above 2.2 per cent thereafter, even at the height of the American interventions in Korea and Vietnam. The USSR remained more militarized, but the military share of the population nevertheless declined from a post-war peak of 7.4 per cent in 1945 and remained consistently below 2 per cent after 1957.
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The problem for the Soviet
Union was simple: the United States offered a far more attractive version of civilian life than the Soviets could. And this was not just because of an inherent advantage in terms of resource endowment. It was because centralized economic planning, though indispensable to success in the nuclear arms race, was wholly unsuited to the satisfaction of consumer wants. The planner is best able to devise and deliver the ultimate weapon to a single client, the state. But the planner can never hope to meet the desires of millions of individual consumers, whose tastes are in any case in a state of constant flux. This was one of the many insights of Keynes’s arch-rival, the Austrian economist Friedrich von Hayek, whose
Road to Serfdom
(1945) had warned Western Europe to resist the chimera of peacetime planning. It was in meeting (and creating) consumer demands that the American market model, revitalized during the war by the biggest fiscal and monetary stimulus of all time, and sheltered by geography from the depredations of total war, proved to be unbeatable.

A simple example illustrates the point. Before the war most clothes were made to measure by tailors. But the need to manufacture tens of millions of military uniforms encouraged the development of standard sizes. In truth, the range of human proportions is not that wide; human height and width are normally distributed, which means that most of us are clustered around a median shape. During 1939 and 1940, about 15,000 American women participated in a national survey conducted by the National Bureau of Home Economics of the US Department of Agriculture. It was the first large-scale scientific study of female proportions ever undertaken. A total of fifty-nine measurements were taken from each volunteer. The results of were published in 1941 as USDA Miscellaneous Publication 454,
Women’s Measurements for Garment and Pattern Construction
. Standardized sizes allowed civilian clothes, as well as uniforms, to be mass-produced and sold ‘off the peg’ or ‘ready to wear’. Within a matter of a few decades, it was only the clothes of the wealthy elite that were tailor-made: men’s suits from Savile Row and women’s haute couture from Paris and Milan.

In the post-war United States the consumer society became a phenomenon of the masses, significantly diminishing the sartorial differences between the social classes. This was part of a generalized
levelling up that followed the war. In 1928 the top 1 per cent of the population had received nearly 20 per cent of income. From 1952 until 1982 it was consistently less than 9 per cent, below the equivalent share going to the top 1 per cent in France.
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Better educational opportunities for the returning soldiers coupled with a wave of house-building in the suburbs translated into a marked improvement in the quality of life. The parents of the baby boomers were the first generation to have significant access to consumer credit. They bought their homes on credit, their cars on credit and their household appliances – refrigerators, televisions and washing machines – on credit.
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In 1930, as the Depression struck, more than half of American households had electricity, an automobile and a refrigerator. By 1960 around 80 per cent of Americans not only had these amenities, they also had telephones. And the speed with which the new consumer durables spread just kept rising. The clothes-washing machine was a pre-Depression invention dating back to 1926. By 1965, thirty-nine years later, half of households had one. Air conditioning was invented in 1945. It passed the 50 per cent mark in 1974, twenty-nine years later. The clothes dryer came along in 1949; it passed the halfway mark in 1972, twenty-three years later. (The dishwasher, also invented in 1949, was slower to take off; it was not until 1997 that every second household owned one.) Colour television broke all records; invented in 1959, it was in half of all homes by 1973, just fourteen years later. By 1989, when the Cold War effectively ended, two-thirds or more of all Americans had all of these things, with the exception of the dishwasher. They had also acquired microwave ovens (invented in 1972) and video cassette recorders (1977). Fifteen per cent already had the personal computer (1978). A pioneering 2 per cent owned mobile telephones. By the end of the millennium these, too, were in half of all homes, as was the internet.
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To societies for whom this trajectory seemed attainable, the appeal of Soviet communism quickly palled. Western Europe, its post-war recovery underwritten by American aid, rapidly regained the growth path of the pre-Depression years (though the biggest recipients of the programme named after George Marshall did not in fact grow fastest). The fascist years had weakened trade unions in much of Europe; labour relations were accordingly less fractious than before the war. Strikes were shorter (though they had higher participation). Only in
Britain, France and Italy did industrial action increase in frequency. Corporatist collective bargaining, economic planning, Keynesian demand management and welfare states: the West Europeans took multiple vaccinations against the communist threat, adding cross-border economic integration with the signing of the Treaty of Rome in 1957. In fact the menace from Moscow had largely receded by that date. The Soviet exactions, the unrelenting emphasis on heavy industry, the collectivization of agriculture and the emergence of what Milovan Djilas called ‘The New Class’ of Party hacks – all of these things had already sparked revolts in Berlin (1953) and Budapest (1956). The real economic miracles happened in Asia, where not only Japan but also Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan and Thailand all achieved sustained and in most cases accelerating growth in the post-war period. Asia’s share of global GDP rose from 14 per cent to 34 per cent between 1950 and 1990 and, crucially, Asia kept on growing in the 1970s and 1980s when other regions of the world slowed or, in the case of Africa and Latin America, suffered economic contraction. The performance of South Korea was especially impressive. A country that, in terms of per-capita income, had ranked below Ghana in 1960 was sufficiently advanced by 1996 to join the Organization of Economic Co-operation and Development, the rich countries’ club. Between 1973 and 1990 it was the world’s fastest-growing economy.

The East Asian economic miracle was the key to the Cold War. If Vietnam rather than Korea had been the norm – in other words, if US military interventions had mostly failed – the outcome might have been less happy. What made the difference? First, the United States and its allies (notably Britain in Malaysia) were able to provide credible security guarantees to governments following military interventions. Secondly, post-conflict reforms created secure institutional foundations for growth, a perfect example being the 1946 land reform in Japan, which swept away the remnants of feudalism and substantially equalized property-ownership (something the Meiji reformers had omitted to do). Thirdly, the increasingly open global economic order upheld by the United States very much benefited these Asian countries. Finally, they used various forms of state direction to ensure that savings were channelled into export industries, of which the key first-stage
sector was, of course, textiles. The consumer society provided not only a role model for East Asians; it also provided a market for their cheap cloth.

It should be noted that almost none of the ‘Asian tigers’ that followed Japan’s example, industrializing themselves through exports of staples like cotton goods, did so with the help of democratic institutions. South Korea was steered through its industrial revolution by Generals Park Chung-hee (1960–79) and Chun Doo-hwan (1980–87), while Lee Kuan Yew in Singapore and Suharto in Indonesia were essentially absolutists (the former an enlightened one), and monopoly parties ruled in Taiwan and Japan. Hong Kong remained a British colony until 1997. However, in each case, economic success was followed after some lag by democratization. East Asia, in short, spun out of the Soviet gravitational field because it became a stakeholder in the American consumer society. It was a very different story in those countries – Iran, Guatemala, Congo, Brazil, the Dominican Republic and Chile – where US interventions were shorter in duration, and even worse in those – Cuba, Vietnam, Angola and Ethiopia – where Soviet intervention or assistance was more effective.

That mass consumerism, with all the standardization it implied, could somehow be reconciled with rampant individualism was one of the smartest tricks ever pulled by Western civilization. But the key to understanding how it was done lies in that very word: Western. The Soviet Union could perhaps be forgiven for its failure to invent and disseminate the colour television or the microwave oven. But not all the defining products of the consumer society were technologically complex. The simplest of all were in fact a kind of workman’s trousers invented on the West Coast of the United States. Perhaps the greatest mystery of the entire Cold War is why the Worker’s Paradise could not manage to produce a decent pair of jeans.

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