Nowadays, people have different views about whether governments should introduce a maximum wage. In some ways it may seem reasonable to allow people to earn as much as companies are willing to pay, while on the other hand stands a perspective that employee remuneration should be capped at a certain level. This essay will elaborate on both sides and thus will lead to logical conclusion.
There are various reasons why it might be considered beneficial to allow people to be paid extremely high salaries. If companies offer excellent pay packages, they can attract the most talented people in their fields to work for them. For example, technology companies like Google are able to employ the best programmers because of the huge sums that they are willing to pay. Furthermore, these well-paid employees are likely to be highly motivated to work hard and therefore drive their businesses successfully. In theory, this should result in a thriving economy and increased tax revenues, which means that paying high salaries benefits everyone.
Nevertheless, some people hold an opposing view and tend to believe that there should be a maximum wage. By introducing a limit on earnings, the pay-gap between bosses and employees can be reduced. Currently, the difference between normal and top salaries is huge, and this can demotivate workers who feel that the situation is unfair. With lower executive salaries, it might become feasible to introduce higher minimum wages, and everybody would be better off. One possible consequence of greater equality could be that poverty and crime rates fall because the general population will experience an improved standard of living.
In light of discussion above, it can be concluded that having excellent pay package is prominent for some companies to attract the best talents, although the way how it causes society inequality should be well handled.
