This morning on Bloomberg, former NYC Mayor Mike Bloomberg appeared with everyone’s favorite bank CEO, Lloyd Blankfein, to discuss the economy and Goldman’s small business lending program which is apparently a thing, not just some bullshit in a commercial. It was a pretty shitty piece but at one point Mike (and I can call him Mike because we’re totally friends like that) starts in on how he’s not a fan of raising the minimum wage and would instead like to raise the Earned Income Tax Credit to help the same people.
Now, there are some big problems with this… it does nothing to address inequality, lack of wage growth, and it explodes the deficit. Effectively, it’s a way of funneling money directly from the federal government to Wal Mart.
Raising the minimum wage consistently grows the economy, it doesn’t contract it or contract employment. It’s time to put the myths aside and get on with restoring wage growth.