How was the arms race funded?

The arms race, particularly during the Cold War, was funded through a combination of government budgets, military spending, and economic resources allocated by both the United States and the Soviet Union. These nations prioritized defense spending, often diverting funds from social programs and infrastructure. Additionally, the competition for technological supremacy led to substantial investments in research and development, supported by national policies aimed at enhancing military capabilities. This financial commitment was fueled by the perceived threat from the rival superpower, driving a cycle of escalating expenditures.