Many things have a threshold. Incompetence is one of them. Powerlessness is another. When a leader is viewed as both incompetent and powerless, everyone else—peers, outsiders, competitors, allies, subordinates—everyone will view that leader as “full of hot air”.
Once compared to a hot air balloon, it’s hard to restore any respectable reputation.
“Hot air” symptoms involve overreaching, making rules that can’t be enforced, making rules that hurt and don’t help, making rules outside of jurisdiction, prudence, or ethics.
As a leader it’s your full time job to make life better for others. When you don’t, they poke holes.