The outcome of the Korean War increased tension between several world's superpowers during the Cold War.
- Because it demonstrated that the two superpowers, the United States and the Soviet Union, could engage in a "limited war" in a third nation, the Korean War was crucial in the evolution of the Cold War.
- America intended to stop the domino effect as well as keep communism in check. Truman was concerned that Japan, which was crucial for American trade, might fall next if Korea fell. This was most likely the main justification for America's engagement in the conflict.
- Government expenditure on the Korean War increased GDP growth, which in turn restrained investment and consumption. Taxes were greatly increased to pay for the war, while the Federal Reserve pursued an anti-inflationary strategy.
Thus this was the aftermath of Korean war.
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