CLUMSY SOLUTIONS FOR A COMPLEX WORLD: THE CASE OF CLIMATE CHANGE

Successful solutions to pressing social ills tend to consist of innovative combinations of a limited set of alternative ways of perceiving and resolving the issues. These contending policy perspectives justify, represent and stem from four different ways of organizing social relations: hierarchy, individualism, egalitarianism and fatalism. Each of these perspectives: (1) distils certain elements of experience and wisdom that are missed by the others; (2) provides a clear expression of the way in which a significant portion of the populace feels we should live with one another and with nature; and (3) needs all of the others in order to be sustainable. ‘Clumsy solutions’– policies that creatively combine all opposing perspectives on what the problems are and how they should be resolved – are therefore called for. We illustrate these claims for the issue of global warming.     

The Political Origins of the Financial Crisis: The Domestic and International Politics of Fannie Mae and Freddie Mac

For much of the last decade it was clear that the commercial operations of the government-sponsored enterprises Fannie Mae and Freddie Mac were creating an increasing systemic financial risk. That risk was compounded by the fact that the Japanese and Chinese central banks were acting as cheap creditors. The Bush administration and some Republicans in Congress made efforts from 2001 to create a tougher regulatory framework for Fannie and Freddie. Fannie and Freddie were able to defeat these attempts to constrain their operations by a four-fold political strategy involving campaign contributions to members of Congress, a vast lobbying apparatus, the cultivation of a political language around affordable housing for minorities, and abusing and smearing their regulator. Since Japan and China understood that the US government would have to assume Fannie and Freddie's liabilities in a crisis they had no incentive to expose the political fiction that it would not.