It is already old news: significant segments of society are deeply disillusioned with the so-called "establishment", and especially with the political class. The Yellow Vest protests in France, provoked by President Macron's decision to raise fuel taxes in the name of fighting climate change, have become just the latest indication of the scale of that alienation.
There are compelling reasons for dissatisfaction. Political leaders (both those from the right and those from the center left), who accepted the neoliberal faith that globalization, financialization, deregulation, privatization and a bunch of related reforms will bring unprecedented prosperity, for four decades fed the public with promises that, it turns out, , are not fulfilled. While a small elite is apparently doing very well, significant segments of the population have been pushed out of the middle class and ushered into a new world of vulnerability and insecurity. Even in countries with low, but growing, levels of inequality, political leaders have felt the wrath of society first hand.
Judging by the numbers, the situation in France looks better than in most other countries. However, it's not the numbers that matter, but the perception. Even in France, which has avoided some of the extremes of the Reagan and Thatcher eras, many find themselves in a difficult position. And when they reduce taxes for the richest, but increase them for ordinary citizens in order to fulfill budget demands (be they demands of Brussels or rich financiers) - it should not be surprising that some people got angry. The slogans of the Yellow Vests explain what really worries them: "The government is talking about the end of the world." And we worry about the end of the month".
In other words, there is serious mistrust of government and politicians, which means that pleas and calls to make sacrifices now in exchange for promises of a better life tomorrow are unacceptable. This is especially true of the economic policy of "trickle down": tax cuts for the rich that will supposedly benefit everyone else over time.
When I worked at the World Bank, the first lesson I learned from policy reforms was that their consistency and pace are of great importance. The concept of the "Green New Deal" which is represented by progressive forces in the USA today, and how it takes these factors into account.
The Green New Deal is based on three premises. First, there are unused or underutilized resources, primarily human talents, which can be used effectively. Second, increasing the demand for workers with lower or secondary education or qualifications would allow their wages and living standards to rise. Third, a healthy environment is the most important component of human well-being - today and in the future.
If the problems related to climate change are not addressed today, then the next generation will have a huge burden. Today's generation simply must not pass those costs on to the next. It is better to pass on financial debt, which we will deal with one way or another, than to condemn our children to a possibly uncontrollable environmental disaster.
Almost 90 years ago, US President Franklin Roosevelt responded to the Great Depression with the New Deal - a package of bold reforms that affected almost every aspect of the American economy. Now, however, the New Deal is not needed simply as a symbol. An inspiring goal is necessary - to put people back to work. This is exactly what Roosevelt did for the US, which was then hit by colossal unemployment. Back then it meant - more investments in the electrification of villages, in roads and dams. Economists are debating how effective the Green Deal would be.
It is not excluded that the volume of expenditures within the framework of that program would be too low, and would last insufficiently long to lead to the recovery that the economy needed. However, that program would leave a long-term mark by changing the country at a critical moment.
The Green New Deal can also help the development of public transport, the emergence of new professions, the reconfiguration of the economy in order to solve problems related to climate change. By themselves, these investments will create new jobs.
It has long been recognized that decarbonisation (if properly implemented) will become a powerful job creator. A number of them will appear in the economy, which is preparing to enter the world of renewable energy. Of course, some jobs will disappear (for example the jobs of 53.000 miners in the US). Retraining programs for such workers for new professions are necessary. And once again: consistency and pace of change are extremely important. It is much better to create new jobs ago but the old ones disappear. And it's much better to guarantee the taxation of oil and coal companies' profits and liquidate the hidden subsidies they receive, before asking those barely making ends meet to pay more.
The Green New Deal is a positive signal of what the government is capable of doing for today's and the next generation of citizens. Already today, he will give what is most necessary to the people who are at risk - good jobs. It is also capable of providing protection against climate change, which is necessary for the future.
The Green New Deal needs to be expanded, especially in countries like the US, where many ordinary citizens do not have access to quality education, adequate medical care and a decent place to live.
The grassroots movement advocating for a Green New Deal offers a glimmer of hope to a seriously battered establishment. And he is obliged to grasp it, fill it with content and make it part of his progressive program. We need something positive to save us from the disgusting wave of populism, nativism and proto-fascism sweeping the world. The author is the winner Nobel prizes for economics and professor at Columbia University
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