<human>:  How did the Cold War impact the US economy?
<bot>: The Cold War had a significant impact on the US economy. It created decades of escalating military spending, as the US and the Soviet Union competed to outspend one another on military capabilities. This spending had large ripple effects on the US economy, as large defense contracts led to the growth of military-focused industries, while other economic sectors were often starved of resources or managed inefficiently to prioritize defense spending. Ultimately, the Cold War ended with a massive falloff in defense spending, leaving the US economy with the challenge of restructuring its economy to accommodate the transition.