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effects of world war ii to the economy of United States
effects of world war ii to the economy of United States
social political economic impact world war II
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A. Plan of the Investigation As World War II came to a close in 1945, European nations were left physically destroyed and economically impaired; they had poured their money into the war at the expense of their local economies. This investigation will examine the question: “in what ways did the Marshall Plan cause the economic unity of Europe after World War II?”. In this context, economic unity will be defined as the extent to which European countries pooled their resources, traded with one another, and aided each other’s economies in order to increase productivity and income. This investigation will utilize secondary sources to examine how the Marshall Plan promoted trade, resource, and financial aid organizations such as the OEEC and ERP, how the Marshall Plan’s aid of individual nations allowed them to be able to trade with neighboring nations again, and how the Marshall Plan created a …show more content…
This strictly divided Eastern Germany, as part of the post-war agreements between the US and the USSR. The US worked to pull France, Italy, and Eastern countries away from communism (Hixson). In 1948, The Marshall Plan led to the blockade of Berlin (Provan), which noticeably separated Western and Eastern Europe (Hixson). While Western European economies thrived and unified, those of Eastern European nations (under the communist control of the USSR) slowed down dramatically and did not interact internationally (Provan). The Soviet Union denied Marshall Aid to all of the countries in the Eastern Bloc (Carson). Stock notes that soon after the announcement of the Marshall Plan, Communists seized power in Czechoslovakia and neighboring Eastern Bloc countries in 1948. Wilson states that by 1952, the US and Western European nations allied together against the USSR and its communist regime
After the war, the United States and the Soviet Union had very different ideas on how to rebuild. The United States, led by President Truman, wanted to form democracies in Europe and create a capitalistic society to build economically strong nations that would compliment the American economy through trade. In contrast, the Soviet Union, led by Joseph Stalin, wanted to rebuild itself and spread communism through Europe and Asia. In a desperate attempt to rebuild, many countries devastated by war fell under soviet influence and resorted to communism. The Soviet Union called these nations Satellite nations and hoped that they would serve as ?buffer? nations, preventing invasion from the west .In its efforts to defend democracy, the U.S. created the policy of containment. In this new policy, the United States would try to block Soviet influence by making alliances and supporting weaker nations. Winston Churchill described this strategy as an ?iron curtain?, which became and invisible line separating the communist from the capitalist countries in Europe. To help enforce the ideas of containment, President Truman create...
During 1940-1970, the USSR and the USA were the world’s leading superpowers. After WW2, it was the US money that helped rebuild nearly all of Western Europe, putting nearly half a dozen countries into debt. They opened trade and helped Europe’s ravaged economy to get back onto its feet. They did so by creating the ‘Marshall Plan’ on June the 5th, 1947. The plans aim was to reconstruct Western Europe and at the same time to stop Communism spreading to them – the Americans were avid believers in the Domino Theory, and believed that communism would take over all of Europe if they did not intervene. They also created other policies such as the Truman doctrine on March the 12th, 1947 (which is a set of principles that state that the US as the worlds ‘leading country’ will help out other democratic governments worldwide) and NATO, 4th of April 1949.
This investigation will examine ways in which the US economy improved during the second World War and what caused these improvements. World War Two was a turning point for the American economy from the end of the Great Depression to the start of an economic boom. The reasons for this economic improvement are still debated today. This investigation will look at the economic indicators before, during, and after the war. It will also consider the two main arguments for the cause of the sudden economic growth and determine which one seems most probable.
During 1945 and early in 1946, the Soviet Union cut off nearly all contacts between the West and the occupied territories of Eastern Europe. In March 1946, former British Prime Minister Winston Churchill warned that "an iron curtain has descended across the Continent" of Europe. He made popular the phrase Iron Curtain to refer to Soviet barriers against the West (Kennedy 1034). Behind these barriers, the U.S.S.R. steadily expanded its power. In 1946, the U.S.S.R. organized Communist governments in Bulgaria and Romania. In 1947, Communists took control of Hungary and Poland. Communists seized full power in Czechoslovakia early in 1948. These countries became Soviet satellite nations controlled by the U.S.S.R. Albania already had turned to Communism. Yugoslavia also joined the Communist bloc. The Communist Party of Yugoslavia had helped drive out the Germans near the end of the war. Communists led by Josip Broz Tito then took over the government (Cold War). East and West opposed each other in the United Nations. In 1946, the U.S.S.R. rejected a U.S. proposal for an international agency to control nuclear energy production and research. The Soviet Union believed the United States had a lead in nuclear weapons and would have a monopoly if controls were approved. The Soviet Union pictured itself as a defender of peace and accused the United States of planning a third world war.
At the end of WWII, the United States, Great Britain, and France occupied the western zone of Germany while the Soviet Union occupied the east. In 1948, Britain, France, and the U.S. combined their territories to make one nation. Stalin then discovered a loophole. He closed all highway and rail routes into West Berlin. This meant no food or fuel could reach that part of the city. In an attempt to break the blockade, American and British officials started the Berlin airlift. For 327 days, planes carrying food and supplies into West Berlin took off and landed every few minutes. West Berlin might not have made it if it wasn’t for the airlift. By May 1949, the Soviet Union realized it was beaten and lifted the blockade. By using the policy of containment, the Americans and the British were able to defeat the Soviets.
Little did he know, this twelve-minute speech managed to change the course of history and the fate of a devastated Europe after World War II. This led to the implementation of the Marshall Plan, otherwise known as the “European Recovery Program”, and the Truman Doctrine. Not only did they revolutionize the European economy, but they were able to bring about political change by containing the spread of communism. Both programs also provided a transition into the creation of new political institutions like NATO and the European Community of Steel and Coal. The Second World War likewise denoted the start of the end of world colonialism as patriot developments started to triumph over debilitated pioneer domai...
...thin the Marshall Plan, all four foreign policies are addressed with special concentration on manifest destiny in order that we might assist European governments. Upon the rebuilding of Europe, the U.S. was once again able to expand its economic markets.
De Long and Eichengreen thought that “the Marshall Plan should thus be thought of as a large and highly successful structural adjustment program.” (De Long and Eichengreen 5). It was because the post-World War 2 reconstruction of Western Europe was much faster than the previous World War and compared to Eastern Europe. Charles Kindleberger said that Postwar Europe was a “supergrowth” since the Marshall Plan created a dynamic economic growth which much stronger than the growth of Europe previously. Also, the Marshall Plan boosted European Integration since it was considered as necessary to maintain the peace and growth. The Marshall Plan was used as a guideline to form integration, thought it was failed, however the thought of European Integration eventually grow as the form of European
President Stalin saw the US strategy to rebuild Europe as a way to weaken Soviet influence in that region. This led to the aggressive struggle to take over control of Germany, which led to the divide of Germany. German Capital, Berlin took the hardest hit. The city was divided into the East and West. Soviets were in control of the East while the West was controlled by the Americans, British and French. West Berlin enjoyed more liberal civil and democratic freedom than their counterparts in East Berlin. Again the US and its allies were able to aggressively block any form of communist insurgencies into those areas by providing massive supply of food and other necessities for West Germany in what was known as the Berlin Airlift. This eventually led to the formation of East Germany in
Eastern Europe and the forming of economic alliances in reaction. At the end of World War II, the Soviet Union began transforming the newly freed countries and engulfed them one by one until all of Eastern Europe was part of the Soviet Union. The United States became alarmed with the growing of communism in Europe and set up...
A change in strategy leads to new perspective over certain matters. During FDR’s tenure many new reforms were adopted as part of the New Deal. Some o...
The European Union has been helped economically ever since World War II. Right after World War II’s end, Europe was struggling to hold on. The countries of the modern-day European Union thought it would be a good idea to come together and help each others struggling economy. To this day, this decision has had a very positive outcome on the EU’s economy. As shown in Diagram 1, the European Union combined together has the world’s highest GDP at 18.3 Trillion USD as compared to the United States’ 17.4 Trillion USD GDP and China’s 10.4 Trillion USD GDP. The idea
...blockade; he prevented all access to and from East Germany. Access to Berlin from the west was cut off in stages and culminating in the full blockade on June 24, 1948. To support out part of Berlin, the US started airlifting over 5,600 tons of supplies every day over the blockade. Stalin saw the US airlift response to the Berlin blockade as confrontational. The constant pressure from America and the British eventually forced Stalin to end the blockade in 1949. Russia was just defending itself by keeping Germany broken up. The US refused to acknowledge communism as a valid form of government. The US’s biased perspective of communism, tied with their responsibility to manipulate governments and economies all throughout Europe, initiated the Cold War. The US’s actions infuriated the Soviet Union, and their ideology made a global threat in the Soviet Union and communism.
Europe will not run the 21st century because of a combination of economic, institutional, and cultural factors. However, for the purpose of this paper, I will focus on the economic aspects of European society that will impede EU ascendency. I do not believe that the EU will cease to exist in the coming century, but I do believe it will become obsolete because it will be unable to make the necessary changes to their demographic problems, defense policies, and economic culture in response to the increasing American ascendency. Europe has long been known as the continent home to the great powers of the world. From Caesar to Napoleon to the British Empire, the European empires have continuously been at the helm of the ship of progress. The wars of the 20th century however, left Europe in a wake of destruction and chaos period before. The continent was devastated and had little hope to recover. In this new era of European descent, the great American Era came into existence. The US, one of the remaining superpowers, became the helping hand that Europe needed. With the aid allocated by the Marshall Plan and the creation of programs and institutions, Europe had a future. The creation of the European Union (EU) united the European countries over the common goal of preventing war another war. The United States intended for these programs to be a stepping-stone to build the economic and institutional powers of Europe, because a stronger Europe was good for the US. However, instead of using these as a springboard to create self-reliant union, the EU remains reliant on US military and hard power to support them their social efforts.
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 to the USSR and its allies but was denied on the grounds that they feared capitalistic governments might cause a conversion to capitalism. The Marshall Plan, to the Soviet Union, was seen as a means to interfere in other states internal affairs so it was ultimately rejected.