For a brief time after the end of World War II, things quieted down in Alaska. From a high of 153,000 military personnel in 1943, the number dropped to less than 20,000 after the end of the war. The sudden drop in military spending threatened Alaska's economy with a depression. However, the downturn did not last long, as a new conflict once again showed Alaska's strategic importance.
World War II had brought the U.S. and Soviet Union together as allies in the colossal effort to defeat Nazi Germany. But once the war was over, tensions quickly developed between the communist Soviet Union and the democratic, free-market United States. Besides having completely opposite governmental and economic systems, the former allies also competed in Europe and Asia for control of the rebuilding process.
When the Soviet Union tested its first atomic bomb in 1949 and became a nuclear power, tensions increased further. The resulting conflict became known as the Cold War because, while America and the Soviet Union squared off against each other all around the globe, they never fought directly. But the Cold War was not just cold. By 1950, America was at war in Korea, defending South Korea from an invasion by Soviet-supported North Korea. Over 40,000 Americans would die in the conflict.
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