B
Black_Rose
Guest
I do not think that the Marshall Plan was an act of selfless charity from the US. but an act of Machiavellian politics, much like Pablo Escobar donating some of his money to the poor.
I am too lazy to summarize it myself:
I am too lazy to summarize it myself:
The Marshall Plan grew out of the Truman Doctrine, proclaimed in 1947, stressing the moralistic duty of the United States to combat communist regimes worldwide. The Marshall Plan spent US$13 billion (out of a 1947 GDP of $244 billion or 5.4%, or $632 billion in 2004 dollars) to help Europe recover economically from World War II to keep it from communism. The money actually did not all come out of the US government’s budget, but out of US sovereign credit. The most significant aspect of the Marshall Plan was the US government guarantee to US investors in Europe to exchange their profits denominated in weak European currencies back into dollars at guaranteed fixed rates, backed by gold at $35 an ounce.
The Marshall Plan helped establish the US dollar as the world’s reserved currency at fixed exchange rates established by the IMF, which had been created by the Bretton Woods Conference. The Marshall Plan enabled international trade to resume and laid the foundation for dollar hegemony for more than half a century even after the dollar was taken off gold by president Richard Nixon in 1971. While the Marshall Plan did help the German economy recover, it was not entirely a selfless gift from the victor to the vanquished. It was more a Trojan horse for monetary conquest. It condemned Germany’s economy to the status of a dependent satellite of the US economy from which it has yet to free itself fully.
The Marshall Plan lent Europe the equivalent of $632 billion in 2004 dollars. Japan’s foreign-exchange reserves alone were $830 billion at the end of September 2004. In other words, Japan was lending more to the United States in 2004 than the Marshall Plan lent to Europe in 1947. And Japan did not get any benefits, because the loan is denominated in dollars that the US can print at will, and dollars are useless in Japan unless reconverted to yen, which because of dollar hegemony Japan is not in a position to do without reducing the yen money supply, causing the Japanese economy to contract and the yen exchange rate to rise, thus hurting Japanese export competitiveness.
henryckliu.com/page105.htmlWest Germany’s postwar economy functioned well for several decades, and became one of Europe’s strongest. Much of its success was due to the German tradition of strong social welfare that dated back to the days of Otto von Bismarck a century earlier, and the system of co-determination, which gave workers in factories a voice about their management and provided West German industries a long period of labor peace. The economics of the Cold War also gave Germany guaranteed markets in the US. The export-oriented economy received another boost with the creation of the European Economic Community (EEC) by the Treaty of Rome in March 1957. West Germany was one of the EEC’s founding members. Since the end of the Cold War, this economic order has been under threat from neo-liberal globalization that first attacked the developing economies in Latin America and then the world over.