The Marshall Plan
The Marshall PlanThe Marshall Plan, also known as the European Recovery Program, was introduced on June 5th, 1947. Secretary of State George C. Marshall announced the plan at a commencement speech at Harvard University. The announcement came only a few months after President Truman announced the Truman Doctrine, declaring that the United States would provide military and economic aid to countries resisting communism. The Marshall plan provided 13 billion dollars to Europe to finance the recovery of war-torn nations. The goal of the plan was to spark economic recovery in Europe, for it was believed that communist aggression fed off economic turmoil. The Marshall Plan successfully restored the confidence of the European people in the economic future of their own countries.
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The Marshall Plan's aid was available to the Soviet Union and the Eastern Bloc. The Soviet Union, as expected, turned down the offer and refused to accept aid from the United States. The Soviets were concerned about potential US economic domination over their eastern satellites, and Stalin refused to open up his secret society to westerners. The Soviet Union could not compete financially with the US, and could not counter the Marshall Plan. However, they did tighten their control over Eastern Europe in response to the plan.
Impact
The impacts of the Marshall Plan were felt shortly after it was initiated. In Western Europe, it generated a resurgence of industrialization and brought extensive investment into the region. Europe experienced a dramatic increase in economic production, and the hunger and starvation experienced by many displaced citizens was eliminated virtually overnight. The plan laid the foundation for European integration and eased trade between member nations, which helped European nations coordinate their economies into a single unit. In the US, the plan helped to stimulate the economy by providing new markets for American goods. The plan was viewed as a great humanitarian effort, and it legitimized the concept of US foreign aid programs.