What Is a Lame Duck? How Does It Affect the Economy?

Beware of the Bite of the Lame Duck

lame duck
National Statuary Hall, United States Capitol, Washington DC. Photo: PNC, Getty Images

Definition: Lame duck is an elected official who is in office but whose successor has already been elected. It can also occur when the official is going to retire, or has reached a term limit. In general, lame duck also refers to a person who is ineffectual.

Most people assume lame duck politicians have less power. That's because they can no longer give favors, so they have less ability to negotiate.

They don't have as much dealmaking power since everyone knows they won't be coming back.  

Being a lame duck does give them an unusual source of power. They are no longer beholden to voters. That means they can make decisions that support their legacy despite the consequences.That can make them dangerous.

Lame Duck Session of Congress

The lame duck session of Congress takes place after the November mid-term elections. The members who lost the election are only in office a few more weeks. Their replacements are sworn in on January 6 of the following year.  

Lame duck session only occur in even-numbered ears if Congress reconvenes after the elections. Since 2000, the House and Senate have done just that every year. Congress is using the lame duck session to consider important votes. Sometimes it's because it hasn't gotten the work done in time. 

That's especially bad if the federal budget has not yet been approved.

 It's supposed to be approved by October 1, but it usually doesn't, especially in an election year. Often Congress will approve emergency contingency funding, just to keep the government in business until after the election. Then, the lame duck session continues the emergency funding until the new officials take office.

 

Other times fiscal policy is deliberately delayed until after the election.That protects Congress members up for re-election from voters. That violates the intent of the Constitution. That's because lame duck members are no longer accountable.  A Senator who was voted out of office can vote for a bill they know their constituents wouldn't like. (Source: "The Implications of Regular Lame-Duck Sessions in Congress for Representative Government," The Heritage Foundation, September 6, 2016.)

A lame duck session of Congress is bad for the economy. That's because the outgoing members are unpredictable. They may stall bills to vent their frustration. Some may trade votes for post-election positions. This creates uncertainty that makes it difficult for businesses to plan for the future.

What Does It Mean When the President Is a Lame Duck?

Any U.S. president who has won a second term in office automatically becomes a lame duck. That's because the 22nd Amendment to the Constitution prohibits the president from serving a third term.Therefore, he doesn't have to worry about getting re-elected.

As a result, lame-duck presidents are more concerned with their legacy. They can focus on policies that are less popular, but more far-reaching.

 (Source: "A Better Way to Say Lame Duck,"The Atlantic, January 21, 2015.)

For example, Ronald Reagan signed an arms control treaty with Soviet leader Mikhail Gorbachev. He famously asked him to "tear down this wall," in a speech at the Berlin Wall in 1987. That was despite his opposition to arms control during his presidency. (Source: "LOOKING BACK: The Nuclear Arms Control Legacy of Ronald Reagan," Arms Control Association.)

In his second term, George W. Bush fired Defense Secretary Donald Rumsfeld. In 2007, he increased troops in the Iraq War. That was despite his claim that the war was over in 2004. For a timeline, see War on Terror

What Is the Lame Duck Amendment and What Does It Refer To?

The lame duck amendment is the popular name for the 20th amendment to the Constitution, passed in 1933.

It required newly-elected presidents to take office on January 20 following their November election. Congressional members must take office on January 3 of the year following their elections. Prior to that, they waited until March 4 of the following year before taking office. That was to give them enough time to settle their affairs in their home district and travel to Washington, D.C.

By 1933, travel time was no longer a problem. At them same time, a nearly six-month lame duck session was becoming a big one. Nearly one-fourth of the members of the Seventy-second Congress had been defeated, thanks to the Great Depression. But the newly elected members and President Roosevelt had to wait until March before being able get the country back on its feet again. (Source: "Lame Duck Amendment," Annenberg Classroom.)

Where Did the Term Lame Duck Come From?

The expression originated in 18th-century London. It referred to someone who could not pay his loans. It also referred to a stockbroker who couldn't pay his losses. He had to "waddle out of the alley like a lame duck." (Source: "The Origin of Lame Duck," Denver Post, January 1, 2009.)

In politics, President Lincoln first used the phrase lame duck when referring to outgoing President Calvin Coolidge. He said, "[a] senator or representative out of business is a sort of lame duck. He has to be provided for."