WORLD HISTORY

Detailed explanation-1: -On April 3, 1948, President Truman signed the Economic Recovery Act of 1948. It became known as the Marshall Plan, named for Secretary of State George Marshall, who in 1947 proposed that the United States provide economic assistance to restore the economic infrastructure of postwar Europe.

Detailed explanation-2: -The plan had two major aims: to prevent the spread of communism in Western Europe and to stabilize the international order in a way favorable to the development of political democracy and free-market economies. European reaction to Marshall’s speech was quick and positive.

Detailed explanation-3: -The Marshall Plan was replaced by the Mutual Security Plan at the end of 1951; that new plan gave away about $7.5 billion annually until 1961 when it was replaced by another program.

Detailed explanation-4: -The Marshall Plan generated a resurgence of European industrialization and brought extensive investment into the region. It was also a stimulant to the U.S. economy by establishing markets for American goods.

Detailed explanation-5: -Marshall’s speech called on European nations to work with each other and the United States on economic recovery, rather than to simply receive an injection of financial aid to rebuild Europe. In return, it was believed democracy as well as peace and prosperity would flourish worldwide.