People have different views about whether governments should introduce a maximum
wage. While in some ways it may seem reasonable to allow people to earn as much as
companies are willing to pay, I personally believe that employee remuneration should
be capped at a certain level.
There are various reasons why it might be considered beneficial to allow people to be
paid extremely high salaries. If companies offer excellent pay packages, they can attract
the most talented people in their fields to work for them. For example, technology
companies like Google are able to employ the best programmers because of the huge
sums that they are willing to pay. Furthermore, these well-paid employees are likely to
be highly motivated to work hard and therefore drive their businesses successfully. In
theory, this should result in a thriving economy and increased tax revenues, which
means that paying high salaries benefits everyone.
However, I agree with those who argue that there should be a maximum wage. By
introducing a limit on earnings, the pay-gap between bosses and employees can be
reduced. Currently, the difference between normal and top salaries is huge, and this
can demotivate workers who feel that the situation is unfair. With lower executive
salaries, it might become feasible to introduce higher minimum wages, and everybody
would be better off. One possible consequence of greater equality could be that poverty
and crime rates fall because the general population will experience an improved
standard of living.
In conclusion, it seems to me that it would be better, on balance, for governments to set
a limit on the wages of the highest earners in society