Despite the huge amount of economic support the U.S. gave to europe there is no convincing evidence that the Marshall Plan caused Europe’s growth. U.S. assistance never exceeded 5% of the GDP of the recipient nations. As American economist Tyler Cowen points out, “The assistance totals were minuscule compared to the growth that occurred in the 1950s.”
Moreover, receipt of aid did not track with economic recovery. France, Belgium, Germany and Italy began to grow before the onset of the Marshall Plan, while Austria and Greece expanded slowly until near the program’s end. Great Britain, the largest aid recipient, performed most poorly. The true cause of the economic recovery was the when the Nazi regulations lifted and sound money established.The Marshall Plan may have been a generous act, but that doesn’t mean it spurred Europe’s