Following World War II, all of Europe was left in a clutter of disarray. Instead of watching Europe endure the hardships left from the war, the United States went to Europe’s aid. From 1947 to 1952, European nations experienced a time of massive growth. The Marshall Plan called for the nations of Europe to draw up a program for economic and political recovery from the war. The plan was a response to American concerns that communist parties were growing stronger across Europe and that the Soviets might intervene. The Marshall Plan also reflected the belief that US aid for European economic recovery would create strong democracies and open new markets for American goods. After World War II, The European Recovery Program was instrumental in economically …show more content…
Citizens of Europe were living in shambles (See Fig 2). Politically, Americans knew spreading capitalistic ways in Europe would gain support from the Europeans, giving the United States trade partners. During the Cold War, Germany became the center of all the tensions between Capitalism and Communism. Germany was the ideal gateway between East and West Europe. Its location made it a suitable place for these political struggles to occur. This angered the Soviets because they too wanted to influence their ways on Europe. The Marshall Plan, following the Truman Doctrine-- which supplied $400 million to countries under totalitarian regimes (Turkey and Greece), appeared to be another anti-communist move made by the United States. However, the United States still successfully achieved the goal of making Europe economically stable.
The idea of creating the Marshall Plan can be credited to General George C. Marshall Jr. of Uniontown, Pennsylvania. Marshall served as the Secretary of State after his time at war. With the help of the American diplomat, George Kennan and President Harry Truman, Marshall was able to see through with creating his plan. In 1946, Kennan was ordered by
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Since Germany was immensely affected by the war, the least the US could do was run to their aid. Since WWI, the United States had never wavered in supporting Germany, but US citizens argued that the government felt obligated to assist them. Surprisingly, Western Germany was both economically and politically stable. East Germany, on the other hand, was under the leadership of Russian dictator, Joseph Stalin. He formed the Eastern German government into a centralized and dictatorial regime. Stalin refused to accept aid from The Marshall Plan because he feared the US was plotting another anti-communist attack. General Marshall then felt the need to confront Stalin himself. Marshall approached Stalin saying, “The United States hoped to aid those countries that are suffering from economic deterioration which, if unchecked, might lead to economic collapse and the consequent elimination of any chance of democratic survival.” (Nhd). He continued by stating that he “hoped to rebuild the basis of cooperation, which had existed during the war, and that he had come to Stalin with hope, feeling that if they cleared away some of the tension it would be a good beginning for the restoration of that understanding.” (Nhd). However the tables turned when Stalin unexpectedly replied back, “Only the first skirmishes and brushes of reconnaissance forces on
Famine and unemployment, coupled with the near destruction of the continent’s infrastructure left Europe on the brink of economic collapse and starvation. America began supplying financial aid to Europe immediately after the end of the war, George C. Marshall developed the first piece of foreign policy that would serve to not only assist in the rebuilding of Europe, but also counter the growing communist influence on the continent. “Marshall was convinced the key to restoration of political stability lay in the revitalization of national economies. Further he saw political stability in Western Europe as a key to blunting the advances of communism in that region.” http://marshallfoundation.org/marshall/the-marshall-plan/history-marshall-plan/
George Marshall is the most respected solider in American history due to his supreme leadership abilities. His economic recovery program was known as the Marshall Plan which presented him with Nobel Peace Price in the 1950s. The famous Marshall Plan was an American initiative announced in 1947 that the United States gave approximately 13 billion (130 billion in current dollar value) to Europe to AID. Europe approximately 13 billion dollars (130 billion in current dollar value) to AID Europe. It was to economically support and rebuild European economies after the end of World
The Truman Doctrine first announced in March 1947 by Harry S. Truman, would essentially give aid to Greece and Turkey, so that they would resist communism. The Soviet Union, saw this as a threat, and looked at it as the United States trying to influence other countries, and turn them away from communism. The second reform that was put into place, was the Marshall Plan on March 30, 1948. Similar to the Truman Doctrine, the Marshall Plan provided aid to countries, western european countries, after the end of the world war, in order for them to rebuild themselves. The Soviet Union was invited to join in the giving of aid to Europe, but they refused. It would have been very easy for these countries to turn to communism and the United States realized this, and
The Marshall Plan was the American's assistance package to help recover and aid Europe, in their financial needs, between 1948 - 1952. The president at the time Harry S. Truman was already sending troops and supplies to Europe though it was not enough. In 1947, Secretary of State George C. Marshal issued a call to form a program, to rebuild Europe, he spoke at Harvard university for the American government to donate $12 billion dollars to the program.
Due to similar views on what needed to be done, Germans needed to be stopped. This daunting task that was defeating Nazi Germany, could only be done if both sides cooperated during their efforts. “For the first year after World War II, the Soviet Union and the United States were in agreement that Germany must be turned into an agrarian, pastoral state, and they began to implement the Morgenthau Plan. After chaos and near starvation took hold, the United States repudiated this plan and eventually replaced it with the Marshall Plan.”
The Marshall Plan began its work of doling out what were called counterpart funds in 1948. These funds were loans from the U.S. that were used to buy necessary goods like foodstuffs, building materials, etc. The amounts that weren’t immediately used for this purpose were funneled into “investment projects” to help rebuild and put people back to work. These counterpart funds didn’t technically have to be paid back to the U.S. (Stern 3). Even though German received less aid money ($1.39 billion) than other countries like Britain ($3.19 billion), that didn’t prevent them from recovering much quicker than any other nation. The West German government skillfully used their leftover ERP counterpart funds to loan out to businesses and developers, which in turn helped the Federal Republic rebuild and become an economic juggernaut (Stern 3-4). Even after decades of detrimental planned economics, the Marshall funds were also used to help rebuild East Germany and unify it and West Germany into one successful nation-state. The Marshall Plan funds helped to cement the new West German economy into what would later be called the “economic miracle”, and prevented communist movements from taking advantage of what would have otherwise been a downtrodden
Germany was divided into four sectors between the U.S., Britain, France and the Soviet Union. The U.S. plan was called the Marshall Plan and its goal was to provide massive financial aid to the war torn European nations in order for them to become stable economies based on freedom and democracy. The Soviets feared any such rebuilding in Germany
Marshall Plan was also invoked in the third world, global poverty, American inner cities, the Balkans, the Middle East, and, finally, Iraq. It can be said that "Marshall Plan" has become a metaphor for any very large scale government program that is designed to solve a specific social problem.
After the WWII, Europe was destroyed by the war, which made most of the states susceptible to the threat and expansion of Communism. Afraid of Communism expansion and destruction of the free democracy, Secretary of State George Marshall asked the Congress to issue an aid program to rebuild and strengthen European economy. The Congress passed the Economic Cooperation Act in March 1948, which was mostly programmed to aid the Western Europe as stated in United States Department of States, (2016).
The Marshall Plan, also known as the European Renaissance Program, has more than $ 13 billion in funding for the recovery of Europe from 1948 to 1951. The Marshall Plan succeeded in triggering an economic recovery that achieved "the restoration of the European people towards their own country and Europe as a whole for the economic future." The plan was named Secretary of State George Marshall.
The West being capitalistic and democratic consisted of Britain, France, and the US. After World War II Europe was divided between the West and the East, the East being Russia. The West implemented a completely different model of economic and political recovery. The Keynesian model of economics was developed on the basis of full employment. The model was introduced to all European States. As a part of the plan it introduction of increased governmental control. It also began subsidizing families with children through income. The economic recovery was more of a miracle due to the quick recovery Europe made. Education, healthcare and welfare were free for everyone. The whole goal for the West was to open up trade and cooperation in Europe.
You have done a very good at explaining exactly what the Marshall Plan is. In the article that I chose, it discusses the effects of the Marshall plan. The Marshall Plan was not to only brace the economic recovery of Europe, but to tie in other states to the U.S. economy. The Marshall Plan increased European industrialization and brought a lot of money into area. The doubt of communist growth and things being destroyed, Congress decided to pass the Economic Cooperation Act which approved funding that would eventually lead to big bucks and would lead to the rebuilding of Europe. Today, the Marshall Plan is looked at as the most successful foreign aid program that has ever happened in history.
Another benefit of the Marshall plan was that it spread liberal democracy and hindered the encroachment of other political philosophies. By retaining influence in Germany the US and other western nations ensured that Germany was not annexed into the eastern bloc. Not only did this strengthen democratic influence, this may have prevented another war. It is plausible that if communist Russia had continued expanding its iron curtain that the cold war could have exploded into a third world war. Avoiding WWIII would have definitely been in the interests of the USA, justifying the Marshall plan.
The economy of Europe was crippled after the war and one of the first actions taken by the Eastern powers was the Marshall Plan. The countries that participated were given a startup fund and were brought into the United States’ economical orbit helping them get back up on their feet. Germany for instance was reduced to rubble by Allied bombing leaving businesses and homes in pieces. They had to build from the ground up but with the help of the US and other nations. After the combination of the 3 Western Allies zones they created a single new currency the Deutsche Mark. The Soviets feared that this would crucially devalue their already hyperinflated Reichsmarks that were used in the east. This crippled the Soviets hold on Berlin as well as Germany.
Marshall Plan was a Major US aid program which mission was a recovery of European countries after World War II. The plan was proposed by US Secretary of State - George C. Marshall. During 1948 - 1951 years, US were offering financial assistance in the form of grants and loans to various countries in Europe, including Austria, France, West Germany, Italy, the Netherlands and the United Kingdom. The replenishment of foreign exchange reserves and the restoration of confidence in financial stability and their economies working capital, which allowed the liberalization of production and prices, were considered as the main function of US aids.