Describe the “Displaced Persons Plan” discussed in paragraph 3. “The truth of the matter is that Europe’s requirements for the next three or four years of foreign food and other essential products – principally from America – are so much greater than her present ability to pay that she must have substantial additional help, or face economic, social and political deterioration of a very grave character(1)

… Aside from the demoralizing effect on the world at large and the possibilities of disturbances arising as a result of the desperation of the people concerned, the consequences to the economy of the U. S. should be apparent to all. It is logical that the U. S. should do whatever it is able to do to assist in the return of normal economic health in the world, without which there can be no political stability and no assured peace. Our policy is directed not against any country or doctrine but against hunger, poverty, desperation, and chaos.”(2)

-George Marshall

Conceived by Under Secretary of State Will Clayton and first proposed by Secretary of State Dean Acheson, the Marshall Plan, also known as the European Recovery Program, pumped more than $ 12 billion into selected war-torn European countries during the next four years. (The countries participating were Austria, Belgium, Denmark, France, West Germany, Great Britain, Greece, Iceland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, and Turkey.) It provided the economic side of Truman’s policy of containment by removing the economic dislocation that might have fostered Communism in Western Europe. It also set up a Displaced Persons Plan under which some 300,000 Europeans, many of them Jewish survivors of the Holocaust, were granted American citizenship. By most accounts, the Marshall Plan was the most successful undertaking of the U. S. in the postwar era and is often cited as the most compelling argument in favor of foreign aid. (3)

To some contemporary critics on the left, the Marshall Plan was not simply pure American altruism – the good hearted generosity of America’s best intentions. To them, it was an extension of a capitalist plan for American economic domination, a calculated Cold War ploy to rebuild European capitalism. Or, to put it simply, if there was no Europe to sell to, who would buy all those products the American industrial machine was turning out?(4)

By any measure, the Marshall Plan must be considered an enormously successful undertaking that helped return a devastated Europe to health, allowing free market democracies to flourish while Eastern Europe, hunkered down under repressive Soviet controlled regimes, stagnated socially and economically. (5)