Title: Economic Reconstruction in Europe After WWII: Recovery Programs & Their Effect - Video & Lesson Transcript | Study.com
Headings: Economic Reconstruction in Europe After WWII: Recovery Programs & Their Effect
Economic Reconstruction in Europe After WWII: Recovery Programs & Their Effect
Lesson Transcript
Economic Reconstruction Post-WWII
Post-War Europe
Debate
Marshall Plan
Register to view this lesson
Are you a student or a teacher?
Economic Reconstruction in Europe After WWII: Recovery Programs & Their Effect
Start today. Try it now
Economic Reconstruction in Europe After WWII: Recovery Programs & Their Effect
Related Study Materials

Content: The United States further urged countries to make trade agreements with multiple countries rather than bilateral agreements so that the full force of problems with one country's economy or goods would not be felt solely and entirely by that country's trade partner. This diversity of trade was encouraged with both the U.S. and within Europe. In addition, those who warned of aid adversely affecting the U.S. were partially correct; the increase in U.S. dollars circulating worldwide caused a moderate amount of inflation in the United States, though the increased circulation had far greater positive effects on the global market. With more hard cash in their pockets, countries were able to increase production levels and make the multilateral trade deals the U.S. encouraged. Indeed, some of this cash given in aid came back to the U.S. economy through trade deals with European economies. The Marshall Plan also won political points for the United States in its growing Cold War with the Soviet Union. Through giving economic aid and fostering the growth of capitalism in Europe, the United States created a capitalist bulwark against the growing spread of communism. Lesson Summary
The Marshall Plan had two purposes: one economic and one political.