This was important in the Cold War because it was the first time that two superpowers (America and the Soviet) had fought a proxy war. Not only did it give the United States a reason to expand its military expenditure four-fold. Because military expenditure increased rapidly, this laid the foundations for the military industrial complex that existed in the Cold War. The far-reaching consequences of the Korean WAr not only set a precedent for future undeclared wars, but Truman's refusal to unleash atomic bombs, even when American forces were reeling under a American involvement in Asia, transforming containment into a truly global policy and significantly boosting Japan's struggling postwar economy. The American foreign policy had become more global, more militarized, and more expensive and even in times of peach, the United States now function in a state of permanent military mobilization, which only angered the Soviets more, furthering them into conflict.