"In considering the requirements for the rehabilitation of Europe the physical loss of life, the visible destruction of cities, factories, mines, and railroads was correctly estimated, but it has become obvious during recent months that this visible destruction was probably less serious than the dislocation of the entire fabric of European economy." (Marshall, 1)
In his famous 1947 Commencement Address, General George Marshall described a Europe in ruins not just physically but economically, with the war having devastated the businesses and currencies of Europe so utterly that their economies could not feasibly right themselves. It is important to note that by this time Communism was spreading in the East, and threatened to take hold in the disadvantaged classes in the wake of World War II. The Marshall Plan ties in well with the doctrine of containment.
"The breakdown of the business structure of Europe during the war was complete." Marshall said bluntly, "The remedy lies in breaking the vicious circle and restoring the confidence of the European people in the economic future of their own countries and of Europe as a whole. The manufacturer and the farmer throughout wide areas must be able and willing to exchange their products for currencies the continuing value of which is not open to question."
Marshall's plan was, in a sense, a New Deal for Europe. In addition to the beginnings of the Cold War and thus a general desire to see a capitalist order in Europe, the United States was economically tied to Europe more than it ever had been. Gone were any pretenses of isolationism in Marshall's rhetoric.
"...the United States 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." (Marshall, 2)
The Marshall Plan succeeded in reestablishing Europe as an economic power, and Europe would continue to be a continent upon which Keynesianism was the rule, far more so perhaps than the US, where New Deal policies were challenged by subsequent, more conservative polices.
In his famous 1947 Commencement Address, General George Marshall described a Europe in ruins not just physically but economically, with the war having devastated the businesses and currencies of Europe so utterly that their economies could not feasibly right themselves. It is important to note that by this time Communism was spreading in the East, and threatened to take hold in the disadvantaged classes in the wake of World War II. The Marshall Plan ties in well with the doctrine of containment.
"The breakdown of the business structure of Europe during the war was complete." Marshall said bluntly, "The remedy lies in breaking the vicious circle and restoring the confidence of the European people in the economic future of their own countries and of Europe as a whole. The manufacturer and the farmer throughout wide areas must be able and willing to exchange their products for currencies the continuing value of which is not open to question."
Marshall's plan was, in a sense, a New Deal for Europe. In addition to the beginnings of the Cold War and thus a general desire to see a capitalist order in Europe, the United States was economically tied to Europe more than it ever had been. Gone were any pretenses of isolationism in Marshall's rhetoric.
"...the United States 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." (Marshall, 2)
The Marshall Plan succeeded in reestablishing Europe as an economic power, and Europe would continue to be a continent upon which Keynesianism was the rule, far more so perhaps than the US, where New Deal policies were challenged by subsequent, more conservative polices.