Marshall Plan: Resuscitating European Economy Post-WWII

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The European Recovery Program, or the Marshall Plan as it is more commonly known, was vital in sparking economic recovery in Europe between 1948 and 1951. Through this plan, over $13 billion was used to finance said economic recovery which would further restore Europe’s confidence in terms of its economic future. This American initiative to help Western European countries recover from the detrimental effects of World War II, aided in rebuilding devastated regions, get rid of trade barriers, make industry more modern, prevent communism from spreading and also helping Europe to grow and prosper once again. This reconstruction plan was developed at a meeting of various European states and came into effect in July of 1947. Aid was also offered …show more content…

United States Secretary of the Treasury, Henry Morgenthau, Jr. devised a plan for the occupation of Germany which was proposed in a memorandum and was called the Morgenthau Plan. In this plan, Morgenthau called for harsh measures to make sure that Germany could not go to war again. The plan proposed for Germany’s armament industry to be eliminated and also for various other industries to be removed if they contributed to Germany’s military strength as a means to eliminate Germany’s ability to wage war. This plan not only was intended to make sure Germany could not wage war but also came off as a way to punish Germany for the devastation of World War II. To do this, the plan suggested dividing Germany into two smaller states- northern and southern- and also destroying their industry. Contrasting from the Marshall Plan – which included Germany in its aid of Europe- no help was offered in the original form of the Morgenthau Plan. Rather than aiding in renewing and revitalizing the country and its industry and economy, the Morgenthau Plan truly came off as a means of punishment as it would leave Germany deindustrialized and unstable as well as divided and powerless. The Marshall Plan was a sequence of economic policies and reforms that helped to strengthen Western European countries whereas the Morgenthau Plan was an underprivileged policy choice that would force Germany into a state of decline …show more content…

With regard to denazification- which was an important point in the after math of World War II- positive repercussion were also produced. An important factor in denazification was not just concerning those that performed the atrocious acts of violence during the war but also German civilians. Initial American methods of denazification included re-education which was harsh and also hard for German people to accept, causing resentment towards the United States. With the Marshall Plan, Germany was provided with money and necessities and aid in stabilizing their destroyed economy. This help eased tensions between the German people and the United States military. With less tension and resentment, leaving behind the Nazi regime and their ideas were left

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