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Effects of World War II on the economy of the United States
Effects of World War II on the economy of the 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
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
To start off the Cold war, Russia had lost twenty-seven million soldiers in World War II. Stalin was not going to allow the Germany to attack Russia again . To make sure of this , Stalin made East Europe his buffer zone.The United states could not allow the this to contunie to happen. The first example was the Truman Doctrine, that declared the the Untited States would support “free people”. The Doctrine was followed by the Marshall Plan which gave 12 billion dollars in aid European democracies so that communist ideas would not be so attractive. These were some of the long term , patient policies the United States did to
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.
The type of policy known as containment was the foreign policy that the United States of America used between the times of 1947 (two years after World War Two) until 1989 (he fall of the Berlin Wall). The definition of containment in this case is strategies whether it was diplomatically, militarily or economically to contain the forming and progression of communism and to give America an influential advantage abroad. The policy of containment all started out with what was known as the Yalta conference, which consisted of Franklin D Roosevelt, the president of the United States at the time, Winston Churchill, the prime minister of the United kingdom, and Joseph Stain, leader of the USSR (Union of Soviet Socialist Republics). It was during this conference that the three men came to an agreement that these three countries would separate the world into three different parts and have their influence on those three parts. This was known as the sphere of influence and it was divided like this; The United States would have control of influence the western hemisphere meaning all of the Americ...
The West and the Eastern bloc were very different socially as well as economically, yet bared some of the same aspects. The Marshall Plan was the United States sponsored program designed to rehabilitate the countries of Europe that suffered the incredibly damaging consequences after World War II. Western Europe’s real attitude toward economic union came about when they avoided discussion of a European free trade area, offered to them as an alternative to the Marshall Plan (Rebuilding Europe After World War II). When communist forces took over Czechoslovakia in 1948, the United States Congress realized the seriousness of the Soviet threat to European democracy. They voted for full funding of the European Recovery Program (the Marshall Plan).
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.
The conflicting U.S. and Soviet aims in Eastern Europe led to the Cold War. The Berlin airlift, the formation of NATO, and the Truman Doctrine all relate to this policy of containment. 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.
...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.
...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.
The second large step in containment was the Marshall Plan. Proposed by Secretary of State George Marshall, it would provide economic relief to rebuilding Western European nations such as Great Britain, France, Belgium and even...
In 1947, the Western portion of Germany instituted a government under the watchful eyes of the Western Allies. The Soviet sector followed suit in 1949. During this period, the elaborate governance structure of greater Berlin broke under the strain of Cold War tensions. What emerged was West Berlin, which took up ties with West Germany, known as the Federal Republic of Germany. East Berlin, which comprised the ruins of the old and historic center of Berlin and outlying districts to the East, became the capital of the German Democratic Republic. After World War II, the Americans pumped capital into West Germany through the Marshall Plan, which resulted in one of the world's strongest economies, enormous prosperity and a stable democracy. Germany has been divided ever since and though at every opportunity, lip service was paid by all western nations to its eventual reunification, no one took the matter seriously.
The federal government started taking on a bigger role in the turn of the twentieth century. President Roosevelt expanded federal authority with his New Deal program. The New Deal program was funded by the federal government, but administered by the states. This brought on the grant-in-aid system, a system in which the federa...
Of all the institutions envisioned as the Second World War waned and ended, few are considered as marring and as pervasive as those of the international economic development complex. By the international economic development complex, I mean not only the organizations meant to provide said aid, but also the governments financing those organizations as part of their international commitm...
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.