Wasteful overspending on defense didn't end the Soviet Union. In fact, it played into the hands of authoritarian "Communist" hard-liners in the Kremlin. Reagan thought the Soviet Union was more powerful than we were. He was trying to close what he called "the window of vulnerability."
This was sheer idiocy.
Here's the truth: we'd already won the Cold War before Reagan took office. All Reagan needed to do was continue the tried-and-true containment policies Harry S. Truman began and all subsequent presidents employed. The Soviet Union was Collapsing from within. The CIA actually told this to Reagan as he took office.
Reagan ignored this, and wrecked our budget.
We didn't have to increase weapons spending, but Reagan didn't care. He ran away from summits with the dying old-guard Soviets, and the new-style "glasnost" leadership of Mikhail Gorbachev baffled the witless Reagan and his closed-minded extremist advisors.
Maggie Thatcher finally cajoled the Gipper into meeting Gorby, and Gorby cleaned Reagan's clock. Reagan's hard-right "handlers" nearly had to drag Reagan out of the room before he signed away our entire nuclear deterrent. Reagan -- and the planet -- was lucky Gorbachev sought genuine and stable peace. Had Yuri Andropov's health held, Reagan's "jokes" and gaffes might have caused World War III.
Eventually Reagan even gave Gorbachev his seal of approval. Visiting Moscow before the August Coup, Reagan said the Soviet Union was no longer the "Evil Empire." He predicted his friend Gorbachev would lead the Soviet Union for many years to come.
As usual, Reagan was wrong. A few months later, disgruntled military officers kidnapped Gorbachev, throwing him out of power forever. Reagan remained disengaged: nothing he did caused the coup, and nothing he did made the Soviet military support Boris Yeltsin over their superiors.
We're all fortunate things happened as they did -- but once again, Reagan did nothing to make this fluke more likely.
http://www.americanpolitics.com/20020319Hersh.html