People share contradictory views about salary rates in some countries. While some believe that a country can benefit from offering a group of people enormous high wages, others lean towards the idea that the authorities should limit the sum of money people can earn.
On the one hand, proponents of earning a huge sum of money can be beneficial for a state often base their arguments on the fact that this regulation can act as a catalyst for driving employees’ motivation. Letting some people earn extremely high wages can be seen as giving them a carrot they need to chase their goals, given that they seem to be more willing to take risks and challenge themselves, which in turn inadvertently brings about potential initiatives as well as golden opportunities in their business world, contributing to the prosperity of the companies. A thriving country can be attributed to those businesses since wealthy taxpayers seemingly pay a lot of taxes, which enrich the government’s budget, helping improve public services like hospitals and schools. However, this viewpoint overlooks the fact that paying exceedingly high salaries to some people means exacerbating the rich-poor gap in a country. In addition to this, if only a few people have most of wealth, it can also increase their power over things like politics, which might pose a threat to democracy.
On the other hand, the main reason why some people propose that the authorities should set a limit on earnings is that there would be less disparity between the rich and the poor thanks to such policy. Then, a more balanced society can also lead to a plummet in criminal rates because current criminals tend to put an eye on the wealthy who they believe to possess a job with a desirable income. Nevertheless, maximizing the amount people can earn might have some glaring drawbacks. Employees might just do the bare minimum without innovation if they know they would not get a bonus for their endless effort. Had it not been for new initiatives, a business would hardly have progressed and caught up with the market.
In light of the aforementioned arguments, a superior solution is that firms should allow individuals to earn as much as they deserve and ensure those with higher salaries pay more in taxes simultaneously. This way, both firms and society can be advantageous since the authorities can use money accumulated from tax to enhance public services, while individuals can put more effort into getting higher salaries and improving their lives.