The Marshall Plan: America, Britain and the Reconstruction by Michael J. Hogan

By Michael J. Hogan

Michael Hogan exhibits how The Marshall Plan used to be greater than an attempt to place American reduction at the back of the commercial reconstruction of Europe. American officers was hoping to refashion Western Europe right into a smaller model of the built-in single-market and combined capitalist financial system that existed within the usa. Professor Hogan's emphasis on integration is a part of an important reinterpretation that sees the Marshall Plan as an extension of yankee family and foreign-policy advancements stretching again in the course of the interwar interval to the revolutionary period. Michael Hogan is Professor of heritage at Ohio country collage and editor of Diplomatic background.

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The Marshall Plan: America, Britain and the Reconstruction of Western Europe, 1947-1952 (Studies in Economic History and Policy: USA in the Twentieth Century)

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Extra info for The Marshall Plan: America, Britain and the Reconstruction of Western Europe, 1947-1952 (Studies in Economic History and Policy: USA in the Twentieth Century)

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See also H. Van B. Cleveland, "The United States and Economic Collaboration among the Countries of Europe," Department of State, Bulletin 16 (January 5, 1947): 3—8; and Leroy Stinebower, Acting US Representative to ECOSOC, "Accomplishments of Fourth Session of the Economic and Social Council," Department of State, Bulletin 16 (April 13, 1947): 655-6. See also Walt W. Rostow, The Division of Europe after World War II: 1946 (Austin, TX, 1981), 70—2. Searching for a "creative peace" 37 with American plans for a multilateral system of world trade.

But European industrial and agricultural production still lagged behind prewar levels. Despite strenuous efforts by some European countries, capital equipment and plant facilities remained hopelessly obsolete or in need of wholesale repair from war damage. A shortage of manpower and of basic resources, especially coal and steel, restrained production, while food shortages and the erosion of wages by inflation discouraged maximum efforts by a demoralized workforce. The depletion of gold and dollar reserves and the network of bilateral trade and payments agreements also hampered efforts to import essential items, prevented the most efficient use of local resources, and made it difficult for the Europeans to join in American plans for a multilateral system of world trade.

This policy, which initially had relegated rearmament to a secondary strategy and then to a position of parity with recovery, now gave way to one that placed it above reconstruction. Out of this shift came a massive expansion of defense expenditures on both sides of the Atlantic. The economic dislocations that followed, together with greater American pressure to rearm Germany, led to a wave of anti-Americanism in Western Europe and, in some countries, to a political fragmentation that pitted the forces of the Left against those of the Right.

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