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Study of East vs Western Germany following WWII, Specifically, the effects of the Marshall Plan vs Communism and its effects on - Essay Example

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Name: Instructor: Macro and Microeconomics 29th March, 2013. The Economic Impact of the World War II in Germany Introduction The economic growth for is of a major concern in a country. Germany was one of the European nations which encountered a big destruction Second World War…
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Study of East vs Western Germany following WWII, Specifically, the effects of the Marshall Plan vs Communism and its effects on
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"Study of East vs Western Germany following WWII, Specifically, the effects of the Marshall Plan vs Communism and its effects on"

Download file to see previous pages German was affected by the communism. The communist controlled everything in the country and the economic growth depended on them. These also led to the war. If the economy of the country would have grown, there would be an occurrence of the war again. The continued existence of communism would cause this. This war led to the drop in the economy in Europe and many people died. As a result, there was a need to revive its economical strength in this continent. This was to involve a well structured plan and if need be get financial support. This was also to end soviet communism that was widespread in the most parts of the continent, especially in the Eastern German. These on the other hand had an effect on various aspects. These include: Gross Domestic Product (G.D.P), per capita income, infrastructure and national strength. Marshall Plan was involved a program that would provide a solution for German’s downfall. This plan was a reconstruction program that was borrowed from the United State of America and aimed at providing financial support to the dying economy of Europe. The Marshall plan was brought about by George Catlett Marshall. It was a plan the European countries were to accept to so that the economy that had died during the WWII. Its major aim was to finance the Europeans scheme to revive the economy among its nations. It was to ensure that various uncertainties in those schemes were brought to an end. The plan was also trusted on the side of military support to the continent ( Albrecht 2008). Four years after the end of the Second World War, the continent had experienced tremendous success in its states, Germany for this matter. Therefore European states became part of the American organizations to ensure that they were economically stable. The plan had a lot of concern on regaining what was lost during the war. As a matter of fact, the advanced American models that were highly effective were employed. The major concern of this was to make the business practices and industrial sector advanced. Analysis (Descriptive) The incorporation of the plan had a number of effects the stability of the countries of the continent. Firstly, German became well financially and this was even better than the before the start of the war, seven years after the war. The war left the country with its relation with countries being minimal. These caused it to have less access of the products in those nations. Fortunately, the county’s financial capability was raised by zero-point-three-five six years later after the war. The national industrial production went down drastically. This caused the state to incur a lot on expenditure despite the taxes being reduced. On applying the recovery plan, the industrial production went up abruptly. This was better as compared to the production in the Agricultural sector. Germany depended on coal production, which immediately after the war grows slowly, but later on picked up and boosted the economy in the state. This production in this country was better as compared with other states. The production was low because the European countries had difficulties with obtaining raw materials from other countries worldwide for their industries. European culture demanded that Agricultural items were to be obtained from the eastern and in turn industrial items were sold to their partners from western side. This business between states was interfered with since there was no good trade relation amongst them. The labor division was also hard to be brought back to ...Download file to see next pagesRead More
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