Well, we knew that Congress had been at a stalemate – even way before this pandemic – some would even say, even before Trump was president. We have been living with a divided government for several years now. Democracy is supposed to allow the will of the people to speak, so what happens when too many people speak, and have different opinions, to the point where nothing gets done?

 

Enter congressional COVID stalemate, which means nothing gets done – no help for unemployment insurance, no more help for small businesses, no help for state governments, no help for eviction or stimulus assistance. Next, enter presidential “executive order”. What is that? An executive order is a signed, written, and published directive from the President of the United States that manages operations of the federal government.

 

Executive orders state mandatory requirements of the executive branch of government, and have the effect of law. The ability to make such orders is based on congressional laws that delegate to the president some degree of discretionary power, while they are also based on powers granted to the president in the constitution, and must be consistent with those authorities.

 

So, what is the difference between a congressional law and an executive order? An executive order is issued by the country’s chief executive, the president. Traditional laws are voted on, and passed by majority vote in the House of Representatives and the Senate. The “law” is then either signed by the president, or vetoed by him.

 

So, can an executive order create policy, like health care? Obamacare was an executive order (13535 ) announced by President Barack Obama on March 21, 2010, and signed on March 24.

 

Now, can executive orders overrule state law? By the time you read this, we should find out! President Donald Trump signed four executive orders on Saturday Aug. 8, in relation to the latest stimulus package required in the context of the coronavirus pandemic, and after Democrats and the White House were unable to reach an agreement earlier this week on the specifics of the deal.

 

My belief is that the states will defer to the court system, and of course, it may go as high as the U.S. Supreme Court. And, while I would not bet the ranch on the ruling, the Supreme Court has been tilted in favor of the president. What could be the saddest factor of all is that while the problems of 2020 have brought our country to the brink – our congressional leaders, who are supposed to create the law, would rather allow its citizens to be placed in limbo. With the struggles our nation has faced in 2020, limbo is an understatement.

 

Professor Anthony Rivieccio, MBA PFA, is the founder and CEO of The Financial Advisors Group, celebrating its 24th year as a fee-only financial planning firm specializing in solving one’s financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Co-Op City News, The Bronx News, thisisthebronX.info, The Parkchester Times and The Bronx Chronicle. Mr.  Rivieccio also pens a financial article called “Money Talk”. Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University. You can reach Anthony at 347.575.5045.