May 10 2015
Wages: There’s a minimum wage, but should there also be a maximum wage/salary a person can earn?
Minimum wage: Lowest daily or monthly remuneration that employers may legally pay to workers. The ideal minimum wage is disputed. Most countries have a minimum wage to increase the incomes of those who are on low pay. There was a maximum wage for professional footbal palyers in England up until 1960. It was £14 per week in 1951, £15 per week in 1953, £17 per week in 1957 and £20 per week in 1958. Since many clubs are on the face of bankrupcy, I think that the maximum wage law should return.
Over the past few years, chief executives's pay has risen 9 times faster that that of a median earner. The bosses of big companies are 13 times less likely to lose their jobs. However, some people like CEO's or self-indulgent billionaires argue that having a maximum wage law would not help us. I think that another solution to this problem would be to raise income tax on high earners which would raise tax revenue for the government. Having a maximum wage law could be a setback if top executives and skilled workers decided to leave the country for one that doesn't have a maximum wage law. Companies would then have a shortage of skilled workers and executives.
Moreover, having a maximum wage law could even make people think that they don't deserve to earn more money despite the little feeling of social justice that it would give us. A lot of people earn too much money for what they do. Having a maximum wage could help reduce the costs for firms. It may also allow people to have the ability to bargain for wages.
I think that there is way too much of a gap between the highest earners and the lowest earners. Nowadays, rich people are very rich and poor people are very poor. Workers are actually making less money than they were 50 years ago and that is totally abnormal considering the fact that everything is a lot more expensive than it was 50 years ago. Product's prices go up but not people's salaries.
Don't forget to check out Imani's essay right here: