Jeremy Grantham: US should focus on “green” infrastructure spending
Jeremy Grantham, co-founder of asset manager GMO, says the US must set out on a new “green” Marshall Plan to tackle climate change.

If the US is serious about tackling the biggest challenges facing the country right now, it needs to embark on a new “green” Marshall Plan, says Jeremy Grantham.
Jeremy Grantham, who co-founded US asset manager GMO in 1977, believes the US government should take advantage of historically low interest rates to finance “a long, sustained and massive public works programme”, similar to the scheme that helped to rebuild Europe in the wake of World War II, “at negative real rates”.
While Covid-19 is today’s obvious concern, Grantham is more worried about long-term issues. “I believe income inequality is eating away at the economy from the inside with the lack of economic progress for workers reducing demand.”
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This problem goes back to the financial crisis, if not beyond. “The great waste in 2009 and 2010... was the use of precious resources to bail out banks,” says Grantham. The decision “was both unjust and economically inefficient: it was a violation of the spirit of capitalism”.
A new Marshall Plan should focus on “green” infrastructure spending: “It is absolutely imperative that the entire economy be greened if we want any hope to maintain a stable global civilisation in coming centuries.” Infrastructure in the US is already “unusually behind schedule on maintenance and subpar quality”, and many of the jobs created would be “industrial and labour-intensive”, helping to address growing inequality. The move would also help challenge China’s “growing dominance” in green tech.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
What will the unravelling of US-China trade mean for the economy?
What will a US-China decoupling mean for the global economy?
-
Scottish Mortgage: why we’re turning to private companies and China for exceptional returns
When it comes to delivering growth, Scottish Mortgage will stop at no end in its hunt for exceptional long-term returns - this includes China, unicorn companies and sectors such as space exploration
-
Two ways to tap into monopoly profits from airports
Most investors can’t get their hands on airports. Here are two ways you can
-
Fat profits: should you invest in weight-loss drugs?
The latest weight-loss treatments could transform public health and the world economy. Should you invest?
-
How investors could profit from Ramsden Holdings' four-part growth strategy
Ramsdens Holdings offers a diversified set of financial and retail services and a juicy yield, says Dr Michael Tubbs
-
How to invest in the booming insurance market
The insurance sector is experiencing rapid growth after years of stagnation. Smart investors should buy in now, says Rupert Hargreaves
-
Out of America's shadow: Why Trump's tariff chaos may be good for non-US stocks
Opinion Upending global investment and trade could benefit other countries at the expense of the US market, says Cris Sholto Heaton
-
BP's 'long, painful decline' – and why next year could be even tougher
Opinion Long-suffering shareholders in oil giant BP have been pushing for change. It won’t come soon enough, says Matthew Lynn
-
Investment trusts tap the profits in exotic and obscure global markets
Opinion Peter Walls, manager of the Unicorn Mastertrust fund, highlights three investment trusts as he shares where he'd put his money
-
Falling revenues and mounting debt spell trouble for Jumia Technologies
Struggling African e-commerce platform Jumia Technologies looks headed for the exit, says Dr Matthew Partridge.