When Congress fails to act on a major crisis, executive agencies may stretch their existing legal authorities to address the problem (e.g., the COVID eviction moratorium). This often leads to legal challenges and accusations of overreach that stem from legislative paralysis.

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Former DHS Secretary Janet Napolitano reveals DACA was initiated immediately after Congress failed to pass the Dream Act. It wasn't a proactive policy but a reactive measure, using executive power to solve a problem the legislative branch couldn't, highlighting how executive action can stem from legislative paralysis.

Political gridlock is portrayed as an intentional strategy. By creating a temporary economic downturn via a shutdown, the administration creates fiscal and monetary space to inject massive stimulus leading into midterm elections, timing the recovery for political gain.

By labeling a problem with a single, highly emotional term (e.g., 'insurgents,' 'fentanyl'), leaders can create a public mandate to act decisively, often ignoring accountability, due process, and congressional oversight.

The Trump administration's strategy for control isn't writing new authoritarian laws, but aggressively using latent executive authority that past administrations ignored. This demonstrates how a democracy's own structures can be turned against it without passing a single new piece of legislation, as seen with the FCC.

Cheering for a president to use executive orders or emergency powers is short-sighted. The opposition will eventually gain power and use those same expanded authorities for policies you oppose, creating a cycle of escalating executive action.

Unlike most countries that fund legislation upon passing it, the U.S. Congress passes laws first and separately debates funding later. This fundamental disconnect between approving work and approving payment is a structural flaw that repeatedly manufactures fiscal crises and government shutdowns.

Emergency measures, like the Patriot Act after 9/11, rarely expire. Instead, they create a permanent bureaucratic and technological infrastructure for surveillance and control. This 'emergency-to-infrastructure' pipeline normalizes expanded government power, which is then increasingly aimed at ordinary citizens long after the initial crisis has passed.

Political deadlines like military pay dates are often overcome. The true forcing mechanism for ending a prolonged government shutdown is the breakdown of essential services that cause widespread public pain, such as air traffic control disruptions or the cessation of welfare benefits like WIC and SNAP.

The legislative process is notoriously slow, but this is an intentional feature. The Constitution's structure creates a deliberative, messy process to ensure that laws with nationwide impact are not passed hastily. This "inefficiency" functions as a crucial check on power, forcing negotiation and preventing rapid, potentially harmful policy shifts.

Despite expected legislative gridlock, investors should focus on the executive branch. The president's most impactful market tools, such as tariff policy and deregulation via executive agencies, do not require congressional approval. Significant policy shifts can therefore occur even when Congress is divided and inactive.