North Korea in the Korean War Soviets. Neither dictator was content to remain on his side of the 38th parallel, however, and border skirmishes were common. Even so, the North Korean invasion came as an alarming surprise to American officials. As far as they were concerned, this was not simply a border dispute between two unstable dictatorships on the other side of the globe. Instead, many feared it was the first step in a communist campaign to take over the world. For this reason, nonintervention was not considered an option by many top decision makers. As the North Korean army pushed into Seoul, the South Korean
Impact of the Korean War on the economy of the United States tensions with the Soviet Union, the Korean War further increased it. The Korean War cost the US$30 billion in 1953, which is equivalent to US$341 billion in 2011. During the last year of the war, annual war expenditure comprised about 14.1 percent of GDP. Approximately 34,000 Americans were killed in battle and about another 2,800 died from disease or injury, with total US casualties, which includes dead, wounded, and missing in action, adding up to 139,860. The "Korean War GI Bill" was implemented in 1952, eventually covering veterans between June 27, 1950 and February 1, 1955. It offered the same