The Russian economy was already in lousy shape, but remember - this was a totalitarian country. That means that the Soviet Union COULD have stayed intact and dangerous for a long, long time. Decades, certainly. One only has to look at the fact that Saddam is still in power 11 years after Desert Storm to realize just how tenacious a totalitarian dictatorship can be.
So why did the Soviet Union collapse? A lot of reasons, but Reagan plays a big part. Not just for the cost of the military buildup, but because he broke the WILL of the Soviets. Remember, it was only a few short years before Reagan took power that people were talking about Soviet ascendancy. They invaded Afghanistan, they stepped up arms shipments to Cuba and Central and South America, they were interfering all through Africa and the Middle East, etc.
The difference was that the American public’s response to Vietnam, coupled with the election of apologist and appeaser-in-chief Jimmy Carter emboldened the Soviets. They felt they were winning the war for the hearts and minds of the world. The Soviet ‘sphere of influence’ was growing. Key American supporters like Iran moved away from America.
Then along comes Reagan. He starts a vast military buildup, and a program of aggressively opposing the Soviets throughout the world, both militarily and with rhetoric. He’s willing to put the cards on the table and call them an evil empire. In the meantime, Afghanistan turns into the Soviets’ Vietnam. The tide starts to turn. The Soviets install a series of hard-liners (Chernyenko, Andropov), only to see them die in office in rapid succession. The people start to grow dissatisfied. The politburo makes a momentous decision to attempt to turn the tide of opinion by selecting a young reformer in Mikhail Gorbachev, rather than instituting a brutal crackdown on dissent.
I believe that the rise of Gorbachev was the Soviet Union’s attempt to look more moderate and legitimate to counter the growing anti Soviet rhetoric championed primarily by Reagan and Thatcher. And that’s exactly what would have happened if the world wouldn’t have had those two people at that time in history. If Carter had been President, he would have responded to Glasnost and Perestroika by easing up on the Soviets and giving them breathing room. Which is exactly what the Politburo wanted. So did the American left, by the way. I was quite involved in the debates around this back then, and the Democrats were portraying Reagan as a monster for his ‘evil empire’ talk. Reagan was burned in effigy in Europe, along with Thatcher. The popular culture was dead set against them.
But Reagan and Thatcher saw Gorbachev’s rise as a crack in the Empire, and turned up the heat, both rhetorically and militarily. SDI was a brilliant stroke, because it moved the cold war into the realm of high technology instead of brute force and raw numbers, which was a game the Soviets were simply unprepared to play. Reagan went to the Berlin wall and yelled, “Mr. Gorbachev - Tear Down This Wall!”. And by now, thanks to Glasnost and Perestroika, the Soviet people were able to see and hear exactly what was going on. It was about this time that the point of no return was passed, and the collapse of the empire happened startlingly fast.
So the defense buildup was part of it, and SDI was part of it, and Reagan was part of it, and so was Thatcher. History has proven that Reagan and Thatcher were right, and saved the world from a lot of grief (along with Gorbachev, who must be given a big chunk of the credit).
Those three people acting together were the real catalyst. All three were necessary. Without Reagan and Thatcher, Gorbachev would almost certainly not have been allowed (or had the desire) to institute the reforms that ultimately brought down the empire. Without Gorbachev, Reagan and Thatcher’s rhetoric would have fallen on deaf ears.
It’s interesting that after the cold war ended, the three main principles became actually quite good friends. In fact, they were all friendly during the cold war. It’s also interesting that they give each other the credit they deserve. Gorbachev agrees that Reagan was a big factor in the collapse of the Soviets. Reagan gives credit to Thatcher and Gorbachev. Thatcher gives credit to Gorbachev and Reagan.
They were all right. The left in the United States and Europe was wrong. The world is a much better place because for a short period when the world needed it most, those three people rose to power together.