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The '''Marshall Plan''' (officially the '''European Recovery Program''' or '''ERP''') was a system of American economic aid to Western Europe after [[World War II]] that played a major role in the economic recovery, modernization, and unification of Europe. In three years 1948-51 the ERP gave away $12.4 billion (about 5% of the 1948 American GDP of $270 billion) for modernizing the economic and financial systems and rebuilding the industrial and human capital of war-torn Europe, including Britain, Germany, France and Italy and smaller nations.  It required each government to set up a national economic plan, and for the countries to cooperate in terms of financial and trade flows. The money was not a loan and there was no repayment. Washington spent such vast sums because it thought it was cheaper than the rearmament that isolationism or rollback would entail. In the long run, the logic went, a prosperous Europe would be more peaceful, and would make its main trading partner, the US, more prosperous.  

The '''Marshall Plan''' (officially the '''European Recovery Program''' or '''ERP''') was a system of American economic aid to Western Europe after [[World War II]] that played a major role in the economic recovery, modernization, and unification of Europe. In three years 1948-51 the ERP gave away $12.4 billion (about 5% of the 1948 American GDP of $270 billion) for modernizing the economic and financial systems and rebuilding the industrial and human capital of war-torn Europe, including Britain, Germany, France and Italy and smaller nations.  It required each government to set up a national economic plan, and for the countries to cooperate in terms of financial and trade flows. The money was not a loan and there was no repayment. Washington spent such vast sums because it thought it was cheaper than the rearmament that isolationism or rollback would entail. In the long run, the logic went, a prosperous Europe would be more peaceful, and would make its main trading partner, the US, more prosperous.  

The Marshall Plan played a major role in the [[Cold War]] by restoring Western Europe to prosperity and strengthening the opponenets of Communism.  With the Marshall Plan the years 1948 to 1952 saw the fastest period of growth in European history, returning many of the devastated countries to stability.  

The Marshall Plan played a major role in the [[Cold War]] by restoring Western Europe to prosperity and strengthening the opponenets of Communism. The Marshall Plan played a major role in the [[Cold War]] by restoring Western Europe to prosperity and strengthening the opponenets of Communism.  [[KGB]] Agent [[Harold Glasser]] was one of the original candidates considered to head up the organization.<ref>FBI [[Silvermaster group|Silvermaster file]], Vol. 132, [http://education-research.org/PDFs/Silvermaster132.pdf p. 41.]</ref> With the Marshall Plan the years 1948 to 1952 saw the fastest period of growth in European history, returning many of the devastated countries to stability.  

When the [[Joseph Stalin]], Communist dictator of the Soviet Union refused to participate or allow any of his satellites in eastern Europe participate, the plan became exclusive to western Europe. Europe split along East-West lines that defined the [[Cold War]].  Named after U.S. Secretary of State [[George Marshall]], the plan was designed and operated by State Department officials, especially [[Dean Acheson]] in 1947 and began in 1948 when the Republican-controlled Congress authorized the program and the money. The Marshall Plan ended in late 1951, when it gave way to the Mutual Security Program, which combined economic and military aid.  

When the [[Joseph Stalin]], Communist dictator of the Soviet Union refused to participate or allow any of his satellites in eastern Europe participate, the plan became exclusive to western Europe. Europe split along East-West lines that defined the [[Cold War]].  Named after U.S. Secretary of State [[George Marshall]], the plan was designed and operated by State Department officials, especially [[Dean Acheson]] in 1947 and began in 1948 when the Republican-controlled Congress authorized the program and the money. The Marshall Plan ended in late 1951, when it gave way to the Mutual Security Program, which combined economic and military aid.  

[[Image:M-plan$.JPG|thumb|420px]] Historians no longer argue that the Marshall Plan was essential for Europe's recovery, but rather that its political and  psychological impact was decisive in shaping Western Europe. The powerful combination of ERP and NATO gave Europe the assurance of America's commitment to the security and prosperity of Western Europe, and helped the recipients avoid the pessimism and despair that characterized the aftermath of World War I. The Marshall Plan thus created in Europe an unstoppable "revolution of rising expectations," the striking phrase coined in 1950 by Harlan Cleveland, an economist and senior ERP official.

[[Image:M-plan$.JPG|thumb|420px]]  

Historians no longer argue that the Marshall Plan was essential for Europe's recovery, but rather that its political and  psychological impact was decisive in shaping Western Europe. The powerful combination of ERP and NATO gave Europe the assurance of America's commitment to the security and prosperity of Western Europe, and helped the recipients avoid the pessimism and despair that characterized the aftermath of World War I. The Marshall Plan thus created in Europe an unstoppable "revolution of rising expectations," the striking phrase coined in 1950 by Harlan Cleveland, an economist and senior ERP official.

==Origins==

==Origins==

Six years of total war in Europe, 1939-1945, brought destruction and economic ruin to both victors and vanquished.  Only the United States emerged from World War II without domestic damage and stronger economically than before the war.  

[[Image:Glasserwb.JPG|thumb|400px|right|FBI Memo discussing an inquiry from [[John McCloy]], President of the [[World Bank]] to appoint [[KGB]] Agent [[Harold Glasser]] to head up the Bank's work on the Marshall Plan. He was not appointed.]]Six years of total war in Europe, 1939-1945, brought destruction and economic ruin to both victors and vanquished.  Only the United States emerged from World War II without domestic damage and stronger economically than before the war.  

The armadas of heavy bombers that night and day had blasted every industrial area and transportation center in Europe had done a thorough job; recovery was painfully slow.  Economic output in 1948 was 13% below 1938 levels; in Germany it was 55% lower. America, in startling contrast, was 65% higher.   

The armadas of heavy bombers that night and day had blasted every industrial area and transportation center in Europe had done a thorough job; recovery was painfully slow.  Economic output in 1948 was 13% below 1938 levels; in Germany it was 55% lower. America, in startling contrast, was 65% higher.   

[[Category:Cold War]]

[[Category:Cold War]]

 

[[Category:Cold War]]

[[Category:Cold War]]

[[Category:New Deal]]

[[Category:New Deal]]

[[Category:European History]]

[[Category:European History]]