Most developed countries are experiencing a huge income discrepancy where the rich are becoming more and more wealthier and low earners are getting poorer day by day. Many people believe that income disparity is vital for national economic growth while others argue that the government should introduce new rules and regulations to control salaries. This essay will discuss both views and explain why I support the idea of imposing restrictions on individuals income and salaries.
Proponents of controlled salaries argue that salary bars imposed by governments will uniformly spread national wealth and increase per capita income of a country. With the introduction of upper bound wage caps, the government can ensure that all the resources like food, water, medicines, education etc. are equally distributed among the population. Countries like the USA that have introduced a cap for salaires have significantly higher per capita income as opposed to countries that have no earning restrictions. By introducing such rules, countries can ensure that low income earners have equal access to all the essential resources to as compared to extreme high income individuals.
On the other hand, some believe salaries should not be impeded by government policies. Extremely high salaries can significantly boost national economic growth. Employees with higher salaries pay more income tax collected by the government, thus increasing tax revenue. Tax payers’ money can be utilized in betterment of various sectors like education and health.
In my opinion, introduction of salary caps among various business sectors is crucial for maintaining income equality. Uniformity in earnings will give equal opportunities to each member of the society to access basic necessities like education, food, shelter and health. Earning above low income threshold will ensure that families don’t have to struggle to meet basic needs.
In conclusion, while extremely high salaries can positively simulate the economic growth of a country, introducing earning restrictions can significantly reduce the difference between income inequality and uniformly distribute the essential resources like health, food, shelter ect. among citizens of a country. Therefore, I strongly advocate the notion of income equality and establishment of wage cap rules in different departments of private and public jobs.