PC: Economically isolated West during Cold War

Let's say due to politics and war the Cold War by 1970 was effectively the US, Western Europe, ANZ and Japan against the rest of the world. The scenario does not matter and neither does the issue of military security; this PC is purely upon the question of the following:
Is an economically isolated West viable? If the capitalist system only comprised of North America, Western Europe, ANZ and Japan(+ maybe South Africa, Israel), and trade effectively only went around these countries, would it survive? (Implied question: do they not need "poorer" countries to keep inflation at check and keep production low-cost?)
 
I see a rather big issue with lack of access to natural resources, foremost oil.
Maybe they would compensate with atomic power and invest on things like shale oil and cracking much earlier, but on your scenario he West might well face economic collapse rather soon.
 
I see a rather big issue with lack of access to natural resources, foremost oil.
Maybe they would compensate with atomic power and invest on things like shale oil and cracking much earlier, but on your scenario he West might well face economic collapse rather soon.

Oh, lol completely forgot about oil.
So let's say there's a pro-West government in Saudi Arabia/Venezuela/etc. Does that mean they are now a bit more stable?
 
Probably yes, but there might still be shortages of some strategic materials like copper from Chile. And tea/coffee!!
Apart from that, I am not sure: I am no economist, but I don't think that access to "third world"/colonial markets was so decisive during the time of OTL's cold war.
 
Yes. It won't be easy, don't get me wrong, nor would standards of living be as high as OTL, but they would be viable on their own. The rest of the world really needs to worry though. Without trade with the far richer western countries, and no investment they will probably simply not developing very much, and the Soviet Union is in no way capable of making up for that.
 
That would be a good idea for the Soviet Union. Take over most of the former colonies (especially the Middle East, India and Belgian Congo!!!) and then... simply wait for the western world to collapse.
 
Yes. It won't be easy, don't get me wrong, nor would standards of living be as high as OTL, but they would be viable on their own. The rest of the world really needs to worry though. Without trade with the far richer western countries, and no investment they will probably simply not developing very much, and the Soviet Union is in no way capable of making up for that.

So, generally shittier global economy? Well that sounds like shit.
 
That would be a good idea for the Soviet Union. Take over most of the former colonies (especially the Middle East, India and Belgian Congo!!!) and then... simply wait for the western world to collapse.

Except the Soviet Union isn't capable of holding that much territory, and eventually people are going to start wondering, "so...why are things not improving. Those areas simply aren't developed during the Cold War, especially not the earlier part. In the Middle East for instance, where does the money to develop infrastructure come from, and who are they selling to? The West has the money, but they aren't allowed to use it.

So, generally shittier global economy? Well that sounds like shit.

Yep. There's a reason globalization is a thing. That's not to say there aren't MAJOR problems with modern globalization and the global economy, but overall it has some good, none of which is present here.
 
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