The Marshall Plan Essay -- George C. Marshall The Marshall Plan Essays

The Marshall Plan First and foremost, a great deal of Europe’s success would not have happened without its initial aid from the United States. After helping destroy so much of the continent, the U.S. pumped billions and billions of dollars back into the European economy through The Marshall Plan. It was named after Secretary of State George C. Marshall, who said â€Å"The world of suffering people looks to us for leadership. Their thoughts, however, are not concentrated alone on this problem. They have more immediate and terribly pressing concerns where the mouthful of food will come from, where they will find shelter tonight, and where they will find warmth. Along with the great problem of maintaining the peace we must solve the problem of the pittance of food, of clothing and coal and homes. Neither of these problems can be solved alone. (DeLong)† In the first two post-World War II years the U.S. contributed through this plan, about four billion dollars a year to relief and reconstruction. The Marshall Plan continued these flows at comparable rates and was a multi-year commitment. From 1948 to 1951, the U.S. contributed $13.2 billion to European recovery. $3.2 billion went to the United Kingdom, $2.7 billion to France, $1.5 billion to Italy, and $1.4 billion to the Western-occupied zones of Germany (DeLong). An astounding $15.5 billion had been provided to Europe before the Marshall plan was enacted (Wegs, 66). The availability of Marshall Plan aid gave European countries a pool of resources that could be used to cushion the wealth losses sustained in restructuring. Countries that received large amounts of money from the Marshall Plan invested more. Countries could buy the amounts of coal, cotton and petroleum needed (all of these were in short supply) when needed because of Marshall Plan aid. Great Britain used the Marsh all Plan aid to retire public debt (DeLong). The Marshall Plan did have strings attached however. Countries had to agree to balance government budgets, restore internal financial stability, and stabilize exchange rates at realistic levels. Marshall plan aid was available only if Europe was committed to the "mixed economy" with the market playing a large part in the mix (DeLong). On their own, some countries were able to rebuild or repair slightly damaged factories and warehouses. Contrary to popular belief, factories... ...re slow to get into the automobile production game. They refused to merge with other companies, instead vying to produce many kinds of automobiles, none of which got a great deal of market share. None until the Mini came along, breaking from old traditional large British cars, creating a new craze (Wegs, 77-78). Not all was utopian forever in Europe though. All good things generally come to an end, and in the 1970s, the economy began to flounder. But for nearly twenty years, the western portion of Europe rebounded from nothingness, surged in no time, flourished for many years, became a major player in the economic world once again, and truly rose like a phoenix from the ashes of war. Works Cited DeLong, J. Bradford, The Economic History of the Twentieth Century: Slouching Towards Utopia? (University of California at Berkely and NBER: http://www.j-bradford-delong.net/TCEH/Slouch_Present19.html , 1997) . Kindleberger, Charles P., â€Å"The One and Only Marshall Plan,† National Interest, Vol. 11, 113-115. Wegs, J. Robert and Ladrech, Robert, Europe Since 1945: A Concise History, 4th ed. (Boston: St. Martin’s Press, Inc., 1996) 3, 12, 45-47, 65-79.