How did the United States win the Cold War?

A number of factors contributed to the United States defeating the Union of Soviet Socialist Republics (USSR) in the Cold War and becoming the world's most powerful state. A common view is that the U.S. won the Cold War because its capitalist economic system, characterized by free markets and the recognition of private property rights, was able to outperform the USSR's centrally-planned economy. The United States could therefore afford to spend more on its military than the USSR and won the nuclear arms race, which contributed to the internal collapse of the Soviet economy and the subsequent breakup of the Soviet Union into smaller, individual states with democratic elections. Additionally, though the USSR and the United States never officially engaged in direct military conflict with one another during the Cold War, various factions supported by the United States and its Western allies were able to successfully defeat Soviet-backed factions in proxy wars that took place all across the globe (with the notable exception of Vietnam). These defeats gradually limited the USSR's ability to project its power on the world stage, and helped the United States build and strengthen key alliances, including the North Atlantic Treaty Organization. Finally, the United States carried out effective intelligence, counter-intelligence, disinformation and propaganda campaigns that undermined the faith the USSR's population had in its government and buttressed support for the U.S. government's efforts domestically. By 1991, the Soviet Union had fallen and the U.S. had achieved global hegemony.