Who benefited from the Marshall Plan ?

1. Who benefited from the Marshall Plan ? MS. LARSEN FLINN MIDDLE SCHOOL ROCKFORD, IL

2. U.S. fears following WWII • Spread of communism • Return of the Great Depression

3. Soviet Communist Threat To U.S andWestern Europe Following WWII Western European Conditions • HUNGER • POVERTY • DESPAIR • May cause Western Europeans to vote their own leaders into office who would align their country with the Soviet Union. • May cause the spread of communism.

4. UnderstandingCapitalism vs. Communism CAPITALIST THEORY • Businesses, farms and industry are privately owned by individuals who profit from the sale of goods produced. • Individuals pay for the labor of the workers. Pay is based on the efficiency and the skill of the worker. • This system creates a social and economic class system. COMMUNIST THEORY • Workers, as a community, own and run all businesses, industry and farms. Economically all people would benefit equally. • Socially this creates a classless society with great freedom where all people would be considered equal.

5. Communist Theory to Practice Karl Marx publishes the Communist Manifesto promising a workers’ paradise Communist Theory Vladimir Lenin seizes control of agrarian Russia imposing limited liberty Marxist-Leninism Stalin takes control of Russia Forces industrialization on the agrarian society Centralizes power and takes away freedoms from most Takes control of Eastern Block contries Stalinism

6. The Marshall Plan • PURPOSES • Provide Europeans with an attractive option to communism • Make the U.S. look good by giving Europeans hope by providing for immediate needs of the people • Provide financial opportunities for the U.S. to later trade with European nations • Cause Stalin (Soviet Union) to put up a “wall” dividing Europe which aided containment of communism • Cause friction between Stalin and satellite countries by forbidding acceptance of U.S. aide

7. Marshall Plan • Offered to all European countries including Eastern Block countries • Provided grants rather than loans to purchase: • Food • Fuel • Manufactured goods • Marshall Plan made up 10% of the U.S. budget

8. Eastern Block Countries

9. Expected Outcomes of the Marshall Plan • "The Marshall Plan is very much a business plan. . . ," it concluded. "At its root is an office and factory and warehouse job. The Marshall Plan means work, and you will be one of the workers.” Kiplinger Magazine, a publication for business people, 1948

10. U.S. and WESTERN EUROPEAN TRADE U.S. gives grants to Western Europe U.S. companies and farmers sell goods to Europe W. Europeans have money to purchase goods to rebuild W. Europeans continue to trade with the U.S. U.S. economy flourishes W. Europeans rebuild

12. PEACE WITHOUT FEAR:SECURITY AND COOPERATION DANISH POSTER CELEBRATIN G THE MARSHALL PLAN

13. Tell me what you know. 1. Evaluate the political cartoon. Tell what you see : Tell what each item /person /symbol represents. At what audience is the political cartoon aimed ? What did the artist want you to understand? 2. You are a U.S. Citizen. Choose one job from the list below and tell how the Marshall Plan will help you. Secretary Factory Worker Banker Factory Owner Farmer Politician Merchant shipper 3. How did the Western European people or nations benefit from the Marshall Plan?

14. Bibliography • Gaddis, John Lewis. The Cold War. New York. Penguin.2005. • http://www.loc.gov/rr/print/swann/herblock/images/s03386 u.jpg • http://www.loc.gov/exhibits/marshall/images/p4647.jpg • http://www.loc.gov/exhibits/marshall/mars10.html • Painter, David. The Cold War : An International History. New York, Rutledge. 1999.