Chereads / 2025 ECONOMISTS / Chapter 28 - the United state post-WWII trade dominance(1945-1970)

Chapter 28 - the United state post-WWII trade dominance(1945-1970)

*Establishment of the Bretton Woods System (1944)*

- The Bretton Woods System was established in 1944, with the aim of promoting international economic cooperation and stability.

- The system created the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which later became part of the World Bank Group.

- The US played a dominant role in shaping the Bretton Woods System, which established the US dollar as the global reserve currency.

*General Agreement on Tariffs and Trade (GATT) (1947)*

- GATT was established in 1947, with the aim of promoting free trade and reducing tariffs.

- The US played a key role in shaping GATT, which established a framework for international trade negotiations and dispute resolution.

- GATT helped to reduce tariffs and promote trade liberalization, which contributed to the growth of international trade.

*Marshall Plan (1948-1952)*

- The Marshall Plan was a US-led program aimed at rebuilding European economies after WWII.

- The plan provided billions of dollars in economic assistance to European countries, which helped to promote economic growth and stability.

- The Marshall Plan also helped to promote US trade interests, as it encouraged European countries to adopt free market policies and reduce trade barriers.

*US Trade Dominance (1945-1970)*

- The US emerged as a dominant global economic power after WWII, with a strong economy and a significant share of global trade.

- The US used its economic power to promote its trade interests, including the establishment of the Bretton Woods System and GATT.

- The US also used its economic power to promote its foreign policy interests, including the containment of communism and the promotion of democracy.

*Key Figures and Events*

- *Harry S. Truman*: The 33rd President of the United States, who played a key role in shaping US foreign economic policy after WWII.

- *George Marshall*: The US Secretary of State, who played a key role in shaping the Marshall Plan and promoting US trade interests in Europe.

- *The Kennedy Round (1964-1967)*: A major trade negotiation round under GATT, which aimed to reduce tariffs and promote trade liberalization.

- *The US Trade Expansion Act (1962)*: A US law that aimed to promote US trade interests and provide the President with greater authority to negotiate trade agreements.

*Economic and Social Impact*

- *Global Economic Growth*: The US post-WWII trade dominance contributed to rapid global economic growth, as international trade expanded and economies became more interconnected.

- *US Economic Growth*: The US economy experienced rapid growth during this period, driven by its dominant position in international trade and its strong economic fundamentals.

- *Income Inequality*: The US post-WWII trade dominance also contributed to income inequality, as the benefits of trade were not evenly distributed and some groups were left behind.

- *Global Governance*: The US post-WWII trade dominance helped to establish the US as a global leader, and its institutions and policies continue to shape global governance today.