Why not a maximum wage???Instead of worrying about the minimum wage why not have a maximum wage??

Question

I have always thought it would be a good plan if the lowest paid empolyee were paid 10% of what the hightest person in the company gets. Think about this if your companies highest paid person gets 8 million a year what would you get if you were the lowest paid?

It is becoming obvious that the question is not being understood. It is a simple concept. If the top guy thinks he is worth $100 an hour, then the lowest wage he could pay a worker would be $10 an hour. There would still be room for advancement, higher pay, promptions,etc (even for the top guy).
I do believe that this would be hard to manage with top guys getting bonuses, stocks, perks etc. The question is purely food for thought. In thinking of all aspects of a situation a solution may be derived.

Answer 1

At first blush, it sounds like a nice way to reduced income inequality. Might work, too. Note that we do have some experience with this idea: salary caps in baseball. This helps to keep baseball a lot more fun and interesting to watch. It also fattens the pocketbooks of team owners

But, think this one out a little more: how would the government go about enforcing such a law? And would it really reduce income inequality, given so much income for top brass folks comes from non-salary forms of compensation: think stocks, options, real estate, corporate jets, etc.

The current Federal minimum wage is a joke. Even illegal foreign workers get paid more than the minimum in many cases. Careful research by David Card shows a higher minimum wage would likely have little or no effect on employment but would improve the lot of many teenagers and poor families. Raising the minimum wage wouldn't cure the problem of income inequality, but it would help.

Answer 2

On the contrary, minimum wage should be abolished.

Would you work for $1 per hour?
On the same thought, would someone hire you for $25,000 per hour?

Why or why not to each question?

Market forces will keep people employed at a fair wage. What is fair? Fair is not equal. Simply put, Fair is to be paid what you're worth. Some people say that no one should get paid $50 M per year, however if that's what market forces demand, then they are.

There are some people that don't get hired because they aren't worth minimum wage. Others don't get hired because they think they're worth more than what they really are.

Besides...corporations are private affairs. Why does it hurt you, the employees, or the poor if the owners of a company (generally shareholders) think it's ok that the execs get paid $50M. It's not your company, it's theirs. You want to change it, then buy it and do what you want with it.

Answer 3

Take an economics course and you will be able to answer the question yourself and gain quite a bit of knowledge about the business world. A business would not survive with so much of its expenses going toward payroll. By the way, most jobs do have a 'maximum wage.' It would be the high end of the wage range for a certain position. In order to make more than the maximum wage for that job, you would need to be promoted to the next wage level.

Also, executives at most corporations get paid way, way too much in salary and incentives. Millions of dollars thrown at these guys just for making 'big' decisions, often ones that are BAD!

Answer 4

properly that's the place the subjects and ideologies come out. The Republicans prefer putting a cap and wages and salaries so as that they are able to apply greater workers, devoid of repayment, and earnings on the comparable time. In Marxist words that's robbing the worker of her/his surplus fee. lots of the Democrats are responding to their very own help base by using by using scuffling with for a livable minimum salary. yet another ingredient that Cons could hate is fee controls. in spite of the incontrovertible fact that that could help end the containing hollow between wealthy and undesirable. to boot of economists who have not bought their souls to big corporation, ought to be certain the optimum quantity of wages, and fee of things, we'd have a rational economic device, no longer undertaking to the united statesand downs, , desires and whims of the industry desire this facilitates

Answer 5

I like it.

I think we should tax the rich not the poor. Obviously I'm not republican.

Besides, we humans on this small Earth must learn to treat each other like we were brothers and sisters ... and you should want your 'family' to be able to eat and prosper and feel good in life.

So spred the wealth ... and the only way to do that is take it from the top ( without hate ) and equalize.

Answer 6

like not having a minimum wage will be counterproductive fixing a maximum wage will alsobe counterproductive.but more or less the maximum wage is taken care of by taxation

Answer 7

need experience to get at the point where you can get maximum wage. skills, technical education, and if you put your self in that column, if you were running a business did you pay every employee a maximum wage,.,so its a way to earn and give you worker charm to work harder to get promotion,.,.,.,style in this world

Answer 8

Funny idea ... but it's communistic, and eventually people won't have anything to push the boundaries with without motivation ... money is a motivator; sometimes used for good, and other times used for evil ... but it is what keeps us moving.

Answer 9

Brilliant!

Answer 10

That's been tried before. It was called the Soviet Union. Didn't work too well.