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.