Why did the US offer aid to Europe in the form of the Marshall Plan?

Asked By: Anchidim Mourato | Last Updated: 2nd March, 2020
Category: news and politics war and conflicts
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His speech provided the impetus for the so-called Marshall Plan, under which the United States sent billions of dollars to Western Europe to rebuild the war-torn countries. First, the economic chaos of Western Europe was providing a prime breeding ground for the growth of communism.

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Then, why did the US offer aid to Europe in the form of the Marshall Plan and why did the USSR refuse Marshall aid for itself and its allies?

The Molotov plan was symbolic of the Soviet Union's refusal to accept aid from the Marshall Plan or allow any of their satellite states to do so because of their belief that the Plan was an attempt to weaken Soviet interest in their satellite states through the conditions imposed and by making beneficiary countries

Similarly, why did Europe need the Marshall Plan? Marshall spoke of an urgent need to help the European recovery in his address at Harvard University in June 1947. The purpose of the Marshall Plan was to aid in the economic recovery of nations after World War II and to reduce the influence of Communist parties within them.

Then, how did the Marshall Plan benefit the United States?

The Marshall Plan, it should be noted, benefited the American economy as well. The money would be used to buy goods from the United States, and they had to be shipped across the Atlantic on American merchant vessels. (The aid was all economic; it did not include military aid until after the Korean War.)

Which countries received Marshall Plan aid?

Participating countries included Austria, Belgium, Denmark, France, West Germany, Great Britain, Greece, Iceland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, and Turkey. Congress appropriated $13.3 billion during the life of the plan for European recovery.

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Did Britain benefit from the Marshall Plan?

Britain actually received more than a third more Marshall Aid than West Germany - $2.7 billion as against $1.7 billion. The truth is that the post-war Labour Government, advised by its resident economic pundits, freely chose not to make industrial modernisation the central theme in her use of Marshall Aid.

How did Russia react to the Marshall Plan?

The Soviet reaction to Marshall's speech was a stony silence. Molotov immediately made clear the Soviet objections to the Marshall Plan. First, it would include economic assistance to Germany, and the Russians could not tolerate such aid to the enemy that had so recently devastated the Soviet Union.

Did countries have to pay back the Marshall Plan?

The countries that received funds under the plan didn't have to repay the United States, as the monies were awarded in the form of grants. However, the countries did return roughly 5 percent of the money to cover the administrative costs of the plan's implementation.

Who rejected the Marshall Plan?

Soviet foreign minister Vyacheslav Molotov rejected the Marshall Plan (1947), proposing instead the Molotov Plan—the Soviet-sponsored economic grouping which was eventually expanded to become the Comecon.

What effect did the US Marshall Plan have on European economies?


What effect did the U.S.Marshall Plan have on European economies? A. It promoted economic growth and widespread prosperity in Western Europe.

What were the effects of the Marshall Plan?

The May 1948 issue of Kiplinger was devoted to taking advantage of the Marshall Plan's economic ripple effect. Certainly, U.S. industries profited from the jolt of exporting to Western Europe. After all, the lifeline wasn't just a pile of cash; it included foodstuffs, agricultural equipment and machinery.

How successful was the Marshall Plan?

The Marshall Plan was very successful. The western European countries involved experienced a rise in their gross national products of 15 to 25 percent during this period. The plan contributed greatly to the rapid renewal of the western European chemical, engineering, and steel industries.

Why did the Soviet Union refer to Marshall Plan as dollar imperialism?

The Soviet Response
It declared Marshall Aid to be 'dollar imperialism' and claimed the USA was throwing its economic weight around, using it to gain influence in Europe. It forbade the Eastern Bloc countries under its control to apply for Marshall Aid.

Why did the US contain communism?

According to Communist principles, the state should control the economy and the lives of citizens. The Soviet Union wanted to spread Communism to other countries, and the United States wanted to contain it within the countries where it already existed.

What is the purpose of the Marshall Plan?


The purpose of the Marshall Plan or the European Recovery Plan was to aid Europe in recovering from the damages of World War II, and, as stated, stop the spread of communism.

How did the Marshall Plan stop the spread of communism?

But in places where communism threatened to expand, American aid might prevent a takeover. To avoid antagonizing the Soviet Union, Marshall announced that the purpose of sending aid to Western Europe was completely humanitarian, and even offered aid to the communist states in the east.

How does the Marshall Plan relate to the Cold War?

The Marshall Plan was designed to prevent the further advancement of Soviet power in Europe. If the U.S.S.R. was allowed to extend its influence into Western Europe, then only the Atlantic would stand between it and the United States.

Did Germany pay back the Marshall Plan?

Most of the countries that received Marshall Plan money assumed they would never be asked to repay it. But West Germany wasn't sure of its status, so it treated the money as a loan. In 1953, it was agreed that the Germans would repay one-third of their postwar debt to the U.S.

How did the US stop the spread of communism?


The strategy of "containment" is best known as a Cold War foreign policy of the United States and its allies to prevent the spread of communism after the end of World War II.

How did the Truman Doctrine cause the Cold War?

The Truman Doctrine was basically a shot at the Soviet Communism and how it wasn't right, so this obviously angered the Soviets. The Doctrine caused a divide between the communists and non-communists, which did indeed grow tension between America and the Soviet Union which eventually would lead to the Cold War.

How successful was the Truman Doctrine?

Indeed, both nations established repressive right-wing regimes in the years following the Truman Doctrine. Yet, the Truman Doctrine successfully convinced many that the United States was locked in a life-or-death struggle with the Soviet Union, and it set the guidelines for over 40 years of U.S.-Soviet relations.