How do you think the Marshall plan encouraged the growth of capitalism?

Answer 1

Essentially, the Marshall Plan was like a big business loan to Western Europe by which those countries involved were expected to rebuild themselves and become reliable partners in future ventures. Combating Soviet induced communism, future trade prospects, and political progress can all be argued as reasons for this support, but with regards to the direct effects upon capitalist growth, the Marshall Plan allowed households to consume more since firms and governments were able to hire workers and provide consumer goods for their countries.

Without consumer goods the citizens of those countries would be forced under a planned command economy instead of a federally backed privatized system. Eastern Europe did become industrially developed, but the citizens there were brainwashed into working for a greater good that would never occur. In France, W. Germany, Italy, Holland, Denmark, Belgium, and Norway, the system was built upon motivating the people to take care of themselves and letting them realize that the state would care for them by backing THEIR ventures, not the other way around where the people would HAVE to back their state.

Berlin also provides some interesting insight in how this can be seen today. If you ever travel to Germany, you'll notice how Munich reflects traditional archetypal German culture whereas Berlin is much more modern. What's even more noticeable though is how the city is unified for the sanctity of everyone's development. Education, health care, and sanitation are all looked out for very well and every citizen cares about the well being of every other (almost like a picturesque Philadelphia). Berliners understand that the effects of the split and Soviet occupation will not pass by for quite some time, so they voluntarily take charge in developing a thriving economy.