A Minsky Moment for Government After Years of Bidenomics
Donald Trump’s attempt to detox the economy by cutting government spending and regulation has the usual suspects shrieking about an imminent recession. But what if the real problem isn’t Trump’s cuts but the bloated government-driven economy Biden built over the past three years? This isn’t just a policy disagreement—it’s a “Minsky Moment for Government.”
The term “Minksy Moment” comes from the work of Hyman Minsky, an American economist best known for his work on financial instability and economic cycles. Born in 1919, Minsky earned his PhD from Harvard University under the mentorship of Joseph Schumpeter, a towering figure in economic thought.
Minsky spent much of his academic career at Washington University in St. Louis, where he developed his groundbreaking Financial Instability Hypothesis. His theory argued that periods of economic stability encourage greater risk-taking, eventually leading to speculative excess and inevitable collapse. Though largely ignored during his lifetime, Minsky’s work gained significant attention during the 2008 financial crisis, when many economists and policymakers turned to his insights to explain the sudden implosion of global financial markets. Today, he is remembered as a prescient thinker whose warnings about the fragility of economic systems seem more relevant than ever.