Some people believe that it is beneficial for any nation if a few top-level employees make much more money than lower-level employees, whereas others argue that there should be a cap on salaries so that the difference in salaries of employees is not too pronounced. In this essay, I will discuss both viewpoints. I believe that having a cap on salaries would be unfair and counterproductive.
On the one hand, there are many reasons why some believe that a few individuals earning high salaries is good for the country. Firstly, high salaries incentivize people to work harder. In other words, if the people at the top are earning considerably more money, the other employees would work harder to get promoted to get the same salary. Secondly, the higher-level executive officers have to deal with a lot of pressure, and they are responsible for not only their actions but also of those under them. So, high salaries are justified.
On the other hand, those who believe that governments should limit the salaries, give the following reasons. From the company’s point of view the main reason is that substantial pay disparity without any justification generates feelings of unfairness, leading lower-paid employees to shrug off their responsibilities. From the society’s point of view, it would reduce wealth inequality in the society and prevent the rich from gaining unfair control over resources.
I believe that high salaries are an acknowledgment of a person’s hard work, talent and experience. Capping salaries would lead to many talented people leaving the country for better salaries abroad. In addition, the ability to earn high salaries also creates a level playing field because people know if they are willing to work hard and put in their efforts, they can reach any level of success.
To sum up, extremely high salaries are justified and there should not be a limit on it. A system which values hard work and rewards ability, ultimately prospers.