The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative enacted in 1948 to provide foreign aid to Western Europe. The United States transferred over $13 billion (equivalent of about $115 billion in 2021) in economic recovery programs to Western European economies after the end of World War II. Replacing an earlier proposal for a Morgenthau Plan, it operated for four years beginning on April 3, 1948. The goals of the United States were to rebuild war-torn regions, remove trade barriers, modernize industry, improve European prosperity, and prevent the spread of communism. The Marshall Plan required a reduction of interstate barriers and the dissolution of many regulations while also encouraging an increase in productivity as well as the adoption of modern business procedures.The Marshall Plan aid was divided among the participant states roughly on a per capita basis. A larger amount was given to the major industrial powers, as the prevailing opinion was that their resuscitation was essential for the general European revival. Somewhat more aid per capita was also directed toward the Allied nations, with less for those that had been part of the Axis or remained neutral. The largest recipient of Marshall Plan money was the United Kingdom (receiving about 26% of the total). The next highest contributions went to France (18%) and West Germany (11%). Some eighteen European countries received Plan benefits. Although offered participation, the Soviet Union refused Plan benefits, and also blocked benefits to Eastern Bloc countries, such as Romania and Poland. The United States provided similar aid programs in Asia, but they were not part of the Marshall Plan.Its role in rapid recovery has been debated. The Marshall Plan's accounting reflects that aid accounted for about 3% of the combined national income of the recipient countries between 1948 and 1951, which means an increase in GDP growth of less than half a percent.After World War II, in 1947, industrialist Lewis H. Brown wrote (at the request of General Lucius D. Clay) A Report on Germany, which served as a detailed recommendation for the reconstruction of post-war Germany, and served as a basis for the Marshall Plan. The initiative was named after United States Secretary of State George C. Marshall. The plan had bipartisan support in Washington, where the Republicans controlled Congress and the Democrats controlled the White House with Harry S. Truman as president. The Plan was largely the creation of State Department officials, especially William L. Clayton and George F. Kennan, with help from the Brookings Institution, as requested by Senator Arthur Vandenberg, chairman of the United States Senate Committee on Foreign Relations. Marshall spoke of an urgent need to help the European recovery in his address at Harvard University in June 1947. The purpose of the Marshall Plan was to aid in the economic recovery of nations after World War II and secure US geopolitical influence over Western Europe. To combat the effects of the Marshall Plan, the USSR developed its own economic plan, known as the Molotov Plan, in spite of the fact that large amounts of resources from the Eastern Bloc countries were paid to the USSR as reparations for participating with the Axis Powers during the war.

The phrase "equivalent of the Marshall Plan" is often used to describe a proposed large-scale economic rescue program.In 1951 the Marshall Plan was largely replaced by the Mutual Security Act.



Harry S. Truman (May 8, 1884 – December 26, 1972) was the 33rd president of the United States, serving from 1945 to 1953. A lifetime member of the Democratic Party, he previously served as a US Senator from the State of Missouri from 1935 to 1945. He was chosen as incumbent President Franklin D. Roosevelt's running mate for the 1944 presidential election. Truman was inaugurated as vice-president in 1945 and served for less than three months until President Roosevelt died. Now serving as president, Truman implemented the Marshall Plan to rebuild the economy of Western Europe and established both the Truman Doctrine and NATO to contain the expansion of communism. He proposed numerous liberal domestic reforms, but few were enacted by the Conservative Coalition that dominated the Congress.

Truman grew up in Independence, Missouri, and during World War I fought in France as a captain in the Field Artillery. Returning home, he opened a haberdashery in Kansas City, Missouri, and was elected as a judge of Jackson County in 1922. Truman was elected to the United States Senate from Missouri in 1934 and gained national prominence as chairman of the Truman Committee, which was aimed at reducing waste and inefficiency in wartime contracts. Upon assuming the presidency, he was informed about the Manhattan Project. Truman authorized the first and only use of nuclear weapons in war against the Empire of Japan. Truman's administration engaged in an internationalist foreign policy by working closely with British Prime Minister Clement Attlee. Truman staunchly denounced isolationism. He energized the New Deal coalition during the 1948 presidential election and won a surprise victory against Thomas E. Dewey that secured his own presidential term.

After the onset of the Cold War, Truman oversaw the Berlin Airlift and Marshall Plan in 1948. When North Korea invaded South Korea in 1950, he lobbied for intervention from the United Nations in the Korean War. The Truman administration deployed forces in Korean War without congressional authorization and as the war stalemated his popularity fell. Domestically, his administration successfully guided the U.S. economy through the postwar economic challenges; the expected postwar depression never happened. In 1948, he proposed the first comprehensive civil rights legislation since Reconstruction. Congress failed to pass these measures which prompted Truman to issue Executive Orders 9980 and 9981 which ordered the desegregation of the armed forces and agencies of the federal government.

Corruption in the Truman administration became a central campaign issue in the 1952 presidential election. He was eligible for reelection in 1952, but with weak polls he decided not to run. Republican Dwight D. Eisenhower attacked Truman's record and won easily. Truman went into a retirement marked by the founding of his presidential library and the publication of his memoirs. It was long thought that his retirement years were financially difficult for Truman, resulting in Congress voting a pension for former presidents, but ample evidence eventually emerged that he amassed considerable wealth, some of it while still president. When he left office, Truman's administration was heavily criticized, though critical reassessment of his presidency has improved his reputation among historians and the general population.