Sputnik Bankrupted the Soviet Union

During President Obama's second State of the Union address, on January 25, 2011, he referred to the present era in America as a "Sputnik moment." The comparison was meant to highlight the need for Americans to get serious about investing in biomedicine, information technology and clean energy in order to remain competitive globally. Palin, in a discussion with Greta van Susteren on Fox News the following night, took issue with the President's reference to the infamous Soviet satellite that became the first manmade object launched into orbit back in 1957. Calling it a "WTF moment," she argued that Obama "needs to remember that what happened back then with the former communist USSR and their victory in that race to space, yes, they won, but they also incurred so much debt at the time that it resulted in the inevitable collapse of the Soviet Union." Not EXACTLY a good counter to Obama's argument, which didn't say America should exactly emulate the Soviet Union of the 1950s. But fair enough. Except that Sputnik didn't come even close to bankrupting the Soviets. In fact, they didn't get into serious debt trouble until 30 years after Sputnik, and even then it was more a result of excessive military - not technological - investment.











