The Cold War affected domestic policy socially and economically, by increasing industries.
Socially, the intensive rule of the American people led to a retreat of social reforms. Economically, there was an increase in industries related to war which was aided by heavy government expansion. Americans supported capitalist economics, while the Soviets supported communist economics. . The cold war brought about anti-communism within the USA. There was a lingering wave of hatred towards Communism which led to McCarthyism. Â Americans became obsessed with identifying communists and chasing them away from America. There were tensions between the two nations at the end of World War II, the United States and the Soviet Union had a conflict due to ideological differences, and the emergence of nuclear weapons also came about.
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