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brainstorm says
It demonstrated that the Soviet Union had a technological lead over the USA in an entirely new science, space flight.
shatnerpossum says
Cuz it meant the Damn Russkies were ahead of us!
old lady says
Because no one was exactly sure what Sputnik was capable of, nor what it might be a precursor to. And because it wasn't American.
Don Y says
At the time the U.S. was certain that it was more advanced in rocket science than was the U.S.S.R. (as Russia was known then.) When Sputnik began its steady,mocking beep, beep, beep, from earth orbit, that notion was knocked for a loop. The implications were that if Russia was able to launch an object into earth orbit, what did it portend for the intercontinental missile race. What was called the "missile gap" became a major concern as we realized that the Russians were ahead of us.
As I look back on it now, as a consequence of your question, it all seems to be very amusing. Much ado about nothing.
Havoc says
It show that the Soviet was capable of sending a object to space and may have a capabilies of having weapons of there. Or it was the Space Race and it show the the Soviet were a step ahead of the US.