A:

The Marshall Plan was a U.S.-sponsored program implemented following the second world war to aid European countries that had been destroyed as a result of the war. Following World War II, the United States needed to formulate a plan to help rebuild war-tattered Europe, and help create a stronger economic environment for Europe as a whole.

The plan was first laid out by U.S. Secretary of State George Marshall during an address at Harvard University in 1947, and was subsequently authorized by Congress as the European Recovery Program (ERP). The Marshall Plan gave over $13 billion in aide to European nations and was key in revitalizing the post-war economies of these nations. The plan focused on modernizing both business and industrial practices across Europe, while reducing trade barriers between European nations and the United States. By 1952 U.S. funding ended, the economies of all the European recipients surpassed pre-war levels and the plan was considered a success.

For more, see War's Influence On Wall Street.

This question was answered by Lovey Grewal.

RELATED FAQS
  1. How did World War II impact European GDP?

    Understand the effect of World War II on the European gross domestic product and what foreign and domestic factors influenced ... Read Answer >>
  2. Why does the IRS withhold income taxes from employee paychecks?

    In the midst of WWII, the U.S. government ran into trouble funding the war effort. The problem did not originate from citizens ... Read Answer >>
  3. What does "buy on the cannons, sell on the trumpets" mean?

    All the events and news that happen around the world can have a great impact on the stock market. Very often, if a war breaks ... Read Answer >>
  4. Is there a world currency? If so, what is it?

    There is no such thing as a world currency. However, since World War II, the dominant or reserve currency of the world has ... Read Answer >>
  5. How long has the U.S. run fiscal deficits?

    Read about the history of deficit spending in the United States, dating back to 1789, and learn about then-Treasury of the ... Read Answer >>
  6. Who discovered the law of supply and demand?

    Learn how the law of supply and demand affects the economy. This important economic principle is hundreds of years old but ... Read Answer >>
Related Articles
  1. Economics

    The Marshall Plan and the Revitalization of Post War Europe

    The Marshall Plan helped revive the economies of Western Europe after WWII largely by reforms that created greater economic cooperation in the region.
  2. Markets

    Economic Conditions That Helped Cause World War II

    Dire economic conditions following the First World War intensified antagonisms between nations that would eventually lead to the outbreak of World War II.
  3. Forex Education

    How Global Events Affect The Forex Market

    Learn how politics, war and natural disasters move the forex market, and how you should respond.
  4. Forex Education

    What Is A Currency War And How Does It Work?

    We look at what a currency war is, what factors may lead to it, the impacts of such a strategy, and whether there is a currency war currently.
  5. Investing Basics

    General Agreement on Tariffs and Trade (GATT)

    The General Agreement on Tariffs and Trade was a treaty created after World War II that regulated world trade in an effort to aide economic recovery.
  6. Investing Basics

    3 Questions To Find Your Trading Plan

    Ask yourself these three questions to figure out which strategy is best for you.
  7. Investing

    Original Star Wars Trilogy Returning to Theatres in August

    The oldest three Star Wars movies return to the big screen in August in a special program called "Return of the Trilogy".
  8. Fundamental Analysis

    Will Star Wars Be Killed By Its Own Hype? (DIS, HAS)

    As Dec. 18 draws near, the expectations around Star Wars are ballooning. Will the movie franchise be able to live up to expectations?
  9. Investing News

    The Force Propels Record Star Wars Ticket Sales

    The Star Wars franchise has already racked up $100 million in advance ticket sales for North America.
  10. Economics

    Austerity: When The Government Tightens Its Belt

    When a government tightens its belt in tough economic times the entire nation feels the squeeze.
RELATED TERMS
  1. Marshall Plan

    The U.S.-sponsored program implemented following the Second World ...
  2. War Damage Insurance Corporation

    A government financial protection arm created during World War ...
  3. Foreign Aid

    Foreign aid is money that one country voluntarily transfers to ...
  4. The Marshall School Of Business - USC

    The business school at the University of Southern California. ...
  5. War Economy

    The organization of a country's production capacity and distribution ...
  6. Trade War

    A negative side effect of protectionism that occurs when Country ...
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center