The enormously high earnings of some individuals has been a topic of debate lately. While there are people claiming that it is advantageous for a nation, others are of the opinion that the authority should control the levels of salaries. This essay will first elaborate on both viewpoints before showing my final thoughts.
On the one hand, exceptionally high incomes might work in favor of a country. The foremost rationale is that it can serve as an incentives for most, if not all, people to make further progress in their occupations. To specify, this may motivate employees to put more time and effort into their work, fostering productivity and innovation, which means that not only the company’s development can potentially take advantage, but also the national economy’s. Additionally, offering extraordinarily high compensation packages to skilled and seasoned workers might result in talent retention within the country, as well as hinder the phenomenon of brain drain. Thereby, a workforce with high quality would be created, benefiting the nation itself.
On the other hand, a nation might also derive positive outcomes from framing salary levels. Were there to be such a restriction, the pay gap between the affluent and the disadvantaged would be bridged, hampering the income disparity from being more pronounced. This may open doors to an equitable and prosperous society, where the wealth is distributed evenly among the population, translating into fewer social issues such as class-based discrimination or resentment among those having lower incomes. Besides, the financial resources employed for paying these high pay packages might also be free to be redirected towards other critical sectors such as healthcare and education. This, in turn, would benefit the society as a whole.
To summarize, I contend that both viewpoints are justified to a certain extent. Whilst letting people attain extremely high salaries can spur economic growth, controlling the levels of salaries may act as a deterrent against some social problems. The crux lies in the government striking a balance between these two actions, which is imposing individual taxes based on one’s income instead of applying a one-size-fits-all levy.