Khaleej Times

America’s dangerous interregnu­m

- BARRY EICHENGREE­N POLL POSITION Barry Eichengree­n is Professor of Economics at the University of California, Berkeley, and a former senior policy adviser at the Internatio­nal Monetary Fund. — Project Syndicate

Presidenti­al transition­s are never easy, especially when they involve an incumbent president defeated at the e polls. But this time the transition oc- curs in the midst of an unpreceden­ted ed crisis. The incumbent refuses to acknowledg­e the vote as a rejection of his policies and has a visceral eral dislike for the president-elect, who he accuses s of dishonesty and dismisses as too frail to assume ume the duties of office. He tars his successor as a socialist, an advocate of policies that will put the country on the road to ruin.

The year was 1932, and the transition from Herbert Hoover to Franklin D. Roosevelt occurred in the midst of an unparallel­ed economic depression and banking crisis. The outgoing president, Hoover, had an intense aversion to his successor, whose incapacity of concern was not any lack of mental acuity, but rather Roosevelt’s partial paralysis. He called FDR a “chameleon on plaid” and accused him of dealing “from the bottom of the deck.” In his campaign and subsequent­ly, Hoover insinuated that FDR’s socialisti­c tendencies would put the country on a “march to Moscow.”

Back then, the interregnu­m lasted four months, during which the lame-duck president and Congress did little if anything to address the ongoing crisis. Bank runs and panics were spreading contagious­ly, forcing one state governor after another to shut down their banking systems. But Hoover refused to declare a bank holiday unilateral­ly. By the time FDR was inaugurate­d in March 1933, the banking system and the entire economy were virtually at a standstill.

Hoover was aware of the crisis. But he was ideologica­lly opposed to federal government interventi­on. And he was righteousl­y convinced of his views.

We can now expect similar behaviour from America’s lame-duck president, Donald Trump. Out of ideology and pique, he seems likely to refuse to do anything about the rampaging coronaviru­s. The question is how far he will go to impede President- elect Joe Biden’s efforts to address it upon taking office. Will Trump prohibit members of his coronaviru­s task force and

Biden now, like FDR then, must reiterate his message of hope and unity as an antidote to the coronaviru­s and political division.

other appointees from briefi briefing the transition team? Will he withhold informatio­n about Operation Warp Speed, the government’s effort to produce a Covid-19 vaccine?

Hoover, seeing no need for new policies, did everything in his power to limit the incoming president’s options. A believer in the sanctity of the gold standard, he asked FDR to issue a statement supporting its maintenanc­e as a way of bolstering confidence. He encouraged the presidente­lect to endorse, and even recommend, members of the Hoover-appointed US delegation to the internatio­nal conference slated to discuss European war debts and worldwide restoratio­n of the gold standard.

FDR recognised the danger of tying his own hands and refused to commit before taking office. When the president-elect rebuffed him, Hoover angrily released copies of their communicat­ions, inflaming public opinion.

Similarly, we can expect Biden to reject Trump’s entreaties – if there are any — and to avoid commitment­s that limit his room for policy manoeuver. But Trump has already constraine­d him in other ways. In particular, Trump’s judicial appointees will challenge the new president’s effort to make policy through executive order and regulatory directive. Meanwhile, efforts to advance legislatio­n and confirm nominees to administra­tive positions are likely to be frustrated by Senate Majority Leader Mitch McConnell, assuming no further electoral surprises from Georgia (a state Biden appears to have won where run-off elections for two Senate seats will be held in January).

The transition from Hoover to Roosevelt took place at a dangerous time. Spontaneou­s political mobilisati­ons of all kinds were on the rise. A Bonus

Army of more than 43,000 World War I veterans and their families had descended on Washington, DC, in mid-1932, demanding payment of their veteran’s service certificat­es. They were violently dispersed, with loss of life, by the Washington police and the US Army under General Douglas MacArthur. That episode played no small part in Hoover’s electoral defeat (an outcome that might have served as a warning to Trump, who similarly called in troops to disperse demonstrat­ors).

In addition, there were protests, some violent, against foreclosur­e auctions taking place on courthouse steps around the country. There was growing popular support for extremist politician­s such as Louisiana’s Huey Long. Hardship, unemployme­nt, and economic hopelessne­ss formed the backdrop against which Giuseppe Zangara, an unemployed bricklayer with physical and mental problems and extreme anti-system views, attempted to assassinat­e Roosevelt 17 days before the inaugurati­on.

There are two lessons here. The president-elect and those around him need to take extra precaution­s for their personal safety, given the inflamed political climate and Trump’s ongoing efforts to fan the flames. And Biden now, like FDR then, must reiterate his message of hope and unity as an antidote to the coronaviru­s and political division. In 1933, it was “fear itself ” that Americans had to overcome. Today, when it is fear of each other that Americans must overcome, Biden’s affirmatio­n that there are “no red or blue states, just the United States” is a good start.

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