Salaries (Discuss both views)

 

In many countries, a small number of people earn extremely high salaries. Some people believe that this is good for the country, but others think that governments should not allow salaries above a certain level.

Discuss both these views and give your own opinion.

People have different views about whether governments should introduce a maximum

wage. While in some ways it may seem reasonable to allow people to earn as much as

companies are willing to pay, I personally believe that employee remuneration should be

capped at a certain level.

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.

However, I agree with those who argue 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 conclusion, it seems to me that it would be better, on balance, for governments to set a

limit on the wages of the highest earners in society.