GRACELIN BASKARAN: Governments need to learn how to support people impoverished by environmental challenges

As we start 2022 with more questions than answers about the future of the economy, I’m reflecting on the old adage, “All new news is old news happening to new people”.

While the New Deal did not solve all the depression-era challenges in the way mobilising the economy for World War 2 did, the New Deal did generate millions of jobs, created a strong social welfare programme, and sponsored public works projects that brought important infrastructure to nearly every county in the US.

The important differentiating factor of this infrastructure boom is that it occurs against a backdrop of decarbonisation. For example, the EU’s Green Deal will help facilitate a bloc-wide goal of net-zero carbon emissions by 2050, and a 50%-55% cut in emissions by 2030.

Given the strong market case for green infrastructure, less policy intervention is likely to be needed. But governments need to take a page out of FDR’s New Deal by learning how to support people who have become impoverished due to environmental challenges.

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