23 March 1983: Ronald Reagan launches ‘Star Wars’

US president, Ronald Reagan announced the start of research into the Strategic Defence Initiative (SDI), dubbed “Star Wars” by the press, on this day in 1983.

President Reagan Holding Up Bumper Sticker During Meeting
(Image credit: Bettmann / Getty Images)

For almost the entire Cold War, the USA and the Soviet Union had relied on “Mutually Assured Destruction” (Mad) to protect each of them from a nuclear attack from the other. The theory went along the following lines: "You have nuclear weapons. So do I. If you use your nukes against me, I'll use mine against you. So, let's neither of us use them." That works just fine until somebody does use them.

And it wouldn't be just the combatants whose destruction would be assured. You could pretty much kiss the entire planet goodbye. So, as a survival policy, relying on everybody to keep their cool isn't exactly a good one.

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Chris Carter
Wealth Editor, MoneyWeek