Editing Marshall Plan (section)

{{short description|American initiative for foreign aid to Western Europe following World War II}}
{{for|the computer program|Marshall Plan (software)}}
{{redirect-distinguish|European Recovery Program|2008 European Union stimulus plan}}
{{Infobox U.S. legislation
| longtitle = An act to promote world peace and the general welfare, national interest, and foreign policy of the United States through economic, financial, and other measures necessary to the maintenance of conditions abroad in which free institutions may survive and consistent with the maintenance of the strength and stability of the United States.
| colloquialacronym = 
| enacted by = 80th
| effective date = April 3, 1948
| public law url = https://govtrackus.s3.amazonaws.com/legislink/pdf/stat/62/STATUTE-62-Pg137.pdf
| cite public law = 80-472
| cite statutes at large = {{usstat|62|137}}
| acts amended = 
| acts repealed = 
| title amended = <!--US code titles changed-->
| sections created = <!--{{USC}} can be used-->
| sections amended = 
| leghisturl = 
| introducedin = Senate
| introducedbill = {{USBill|80|S.|2202}}
| introducedby = <!--sponsor(s)-->
| introduceddate = 
| committees = 
| passedbody1 = Senate
| passeddate1 = March 13, 1948
| passedvote1 = [http://www.govtrack.us/congress/votes/80-1948/s153 71–19]
| passedbody2 = House
| passedas2 = <!-- used if the second body changes the name of the legislation -->
| passeddate2 = March 31, 1948
| passedvote2 = [http://www.govtrack.us/congress/votes/80-1948/h105 333–78]
| conferencedate = April 1, 1948
| passedbody3 = House
| passeddate3 = April 2, 1948
| passedvote3 = [http://www.govtrack.us/congress/votes/80-1948/h109 321–78]
| agreedbody3 = <!-- used when the other body agrees without going into committee -->
| agreeddate3 = <!-- used when the other body agrees without going into committee -->
| agreedvote3 = <!-- used when the other body agrees without going into committee -->
| agreedbody4 = <!-- used if agreedbody3 further amends legislation -->
| agreeddate4 = <!-- used if agreedbody3 further amends legislation -->
| agreedvote4 = <!-- used if agreedbody3 further amends legislation -->
| passedbody4 = Senate
| passeddate4 = April 2, 1948
| passedvote4 = agreed
| signedpresident = [[Harry S. Truman]]
| signeddate = April 3, 1948
| unsignedpresident = <!-- used when passed without presi!-- used when passed without presidential signing -->
| vetoedpresident = <!-- used when passed by overriding presidential veto -->
| vetoeddate = <!-- used when passed by overriding presidential veto -->
| overriddenbody1 = <!-- used when passed by overriding presidential veto -->
| overriddendate1 = <!-- used when passed by overriding presidential veto -->
| overriddenvote1 = <!-- used when passed by overriding presidential veto -->
| overriddenbody2 = <!-- used when passed by overriding presidential veto -->
| overriddendate2 = <!-- used when passed by overriding presidential veto -->
| overriddenvote2 = <!-- used when passed by overriding presidential veto -->
| amendments = 
| SCOTUS cases = 
| shorttitle = Foreign Assistance Act of 1948
}}

[[File: US-MarshallPlanAid-Logo.svg|thumb|upright=1.15|The labeling used on aid packages created and sent under the Marshall Plan.]]

[[File: George C. Marshall, U.S. Secretary of State.jpg|thumb|General [[George C. Marshall]], the 50th U.S. Secretary of State]]

The '''Marshall Plan''' (officially the '''European Recovery Program''', '''ERP''') was an American initiative enacted in 1948 to provide foreign aid to [[Western Europe]]. The [[United States]] transferred $13.3 billion (equivalent to ${{formatprice|((({{Inflation|US-GDP|5953.0*1e+6|1948}}+{{Inflation|US-GDP|5953.0*1e+6|1949}})/2)+(({{Inflation|US-GDP|3523.0*1e+6|1949}}+{{Inflation|US-GDP|3523.0*1e+6|1950}})/2)+(({{Inflation|US-GDP|2405.9*1e+6|1950}}+{{Inflation|US-GDP|2405.9*1e+6|1951}})/2)+(({{Inflation|US-GDP|1486.2*1e+6|1951}}+{{Inflation|US-GDP|1486.2*1e+6|1952}})/2))}}{{efn-ua|Values for individual years taken from the row ''Totals'' for the years 1948–1952 (total: approx. {{formatprice|((5953.0+3523.0+2405.9+1486.2)*1e+6)}}); for the ranges of years (1948–1949, ...) the average value of inflation was taken for the years 1948 and 1949, 1949 and 1950, etc., respectively. See {{harv|Frankenfeld|2012}}.}} in {{Inflation/year|US}}{{Inflation/fn|US|group=upper-alpha}}) in economic recovery programs to Western European economies after the [[end of World War II in Europe]]. Replacing an earlier proposal for a [[Morgenthau Plan]], it operated for four years beginning on April 3, 1948,{{sfn|Marshall Plan|2020}} though in 1951, the Marshall Plan was largely replaced by the [[Mutual Security Act]]. The goals of the United States were to rebuild war-torn regions, remove [[trade barrier]]s, modernize [[Manufacturing|industry]], improve European prosperity and prevent the spread of [[communism]].{{sfn|Hogan|1987|p=[{{Google books|wVp0UsB1ITIC|pg=PA27|plainurl=yes}} 27]}} The Marshall Plan proposed the reduction of interstate barriers and the economic integration of the [[Europe|European Continent]] while also encouraging an increase in [[productivity]] as well as the adoption of modern business procedures.{{sfn|Carew|1987}}

The Marshall Plan aid was divided among the participant states roughly on a per capita basis. A larger amount was given to the major industrial powers, as the prevailing opinion was that their resuscitation was essential for the general European revival. Somewhat more aid per capita was also directed toward the [[Allies of World War II|Allied nations]], with less for those that had been part of the [[Axis powers|Axis]] or [[Neutral powers during World War II|remained neutral]]. The largest recipient of Marshall Plan money was the [[United Kingdom]] (receiving about 26% of the total). The next highest contributions went to [[France]] (18%) and [[West Germany]] (11%). Some eighteen European countries received Plan benefits.{{sfn|Schain|2001}} Although offered participation, the [[Soviet Union]] refused Plan benefits and also blocked benefits to [[Eastern Bloc]] countries, such as [[Romania]] and [[Polish People's Republic|Poland]].{{sfn|Sobell|1987}} The United States provided similar aid programs in Asia, but they were not part of the Marshall Plan.{{efn-ua|There was large-scale American aid to Nationalist China, and North Korea, as well as French Indochina, Thailand, Burma and the Philippines. {{harv|Price|1955|pp=179–219}}}}

Its role in rapid recovery has been debated. The Marshall Plan's accounting reflects that aid accounted for about 3% of the combined [[Measures of national income and output|national income]] of the recipient countries between 1948 and 1951,{{sfn|DeLong|Eichengreen|1993|p=189-230}} which means an increase in [[Gross domestic product|GDP]] growth of less than half a percent.{{sfn|Crafts|2011|p=6}}

Graham T. Allison states that "the Marshall Plan has become a favorite analogy for policy-makers. Yet few know much about it."<ref>{{Cite book |url=https://www.cfr.org/book/marshall-plan |title=The Marshall Plan |language=en}}</ref> Some new studies highlight not only the role of economic cooperation but approach the Marshall Plan as a case concerning strategic thinking to face some typical challenges in policy, as problem definition, risk analysis, decision support to policy formulation, and program implementation.<ref>{{Cite book |last=Lassance |first=Antonio |url=https://repositorio.ipea.gov.br/bitstream/11058/11101/1/td_2747.pdf |title=The making of a public policy in large-scale: strategy, planning and decision support of the Marshall Plan. |publisher=Brazilian Institute for Applied Economic Research (Ipea) |year=2022 |location=Brasília-DF, Brazil |language=Portuguese}}</ref>

In 1947, two years after the end of the war, industrialist [[Lewis H. Brown]] wrote, at the request of General [[Lucius D. Clay]], ''[[A Report on Germany]]'',{{sfn|Brown|1947}} which served as a detailed recommendation for the reconstruction of post-war Germany and served as a basis for the Marshall Plan. The initiative was named after [[United States Secretary of State]] [[George C. Marshall]]. The plan had bipartisan support in Washington, where the [[History of the Republican Party (United States)|Republicans]] controlled [[United States Congress|Congress]] and the [[History of the United States Democratic Party|Democrats]] controlled the White House with [[Harry S. Truman]] as president. Some businessmen feared the Marshall Plan, unsure whether reconstructing European economies and encouraging foreign competition was in the US' best interests.<ref>{{cite journal |last1=Weissman |first1=Alexander |title=Pivotal Politics – The Marshal Plan: A Turning Point in Foreign Aid and the Struggle for Democracy |journal=The History Teacher |date=November 2013 |volume=47 |issue=1 |page=113}}</ref> The plan was largely the creation of [[United States Department of State|State Department]] officials, especially [[William L. Clayton]] and [[George F. Kennan]], with help from the [[Brookings Institution]], as requested by Senator [[Arthur Vandenberg]], chairman of the [[United States Senate Committee on Foreign Relations]].{{sfn|Brookings Institution}} Marshall spoke of an urgent need to help the European recovery in his address at [[Harvard University]] in June 1947.{{sfn|Hogan|1987|p=[{{Google books|wVp0UsB1ITIC|pg=PA43|plainurl=yes}} 43]}} The purpose of the Marshall Plan was to aid in the economic recovery of nations [[Aftermath of World War II|after World War II]] and secure US geopolitical influence over Western Europe.{{sfn|Lassance|2021|pp=61}} To combat the effects of the Marshall Plan, the USSR developed its own economic recovery program, known as the [[Molotov Plan]]. However, the plan was said to have not worked as well due to the USSR particularly having been hit hard by the effects of [[World War II]].<ref>{{Cite web |title=Research Starters: Worldwide Deaths in World War II |url=https://www.nationalww2museum.org/students-teachers/student-resources/research-starters/research-starters-worldwide-deaths-world-war |access-date=2023-06-28 |website=The National WWII Museum {{!}} New Orleans |language=en}}</ref>

The phrase "equivalent of the Marshall Plan" is often used to describe a proposed large-scale economic rescue program.{{sfn|Roberts|1990|p= 97}}