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 views and give your own opinion.
It is argued that there should be a maximum wage limit on extremely high earners; others, however, believe that people should have the freedom to earn as much as they can. I agree with the second viewpoint On the one hand, the main reason why some people think that it is necessary to have a maximum wage law is that it could help reduce the pay gap between the highest and lowest earners. The decrease in income inequality would have beneficial effects on firms and society as a whole. Companies might cut a huge sum spent on executives’ salaries, and thus have more to invest in other important aspects, such as marketing and promotions, which help increase sales figures. Many studies show that countries with a narrower income gap often have lower poverty and crime rates than those experiencing growing economic inequality. In spite of the above arguments, in my opinion, society would suffer a great deal if a maximum wage legislation was adopted. Setting a limit on earnings would encourage the most skilled workers, who make significant contributions to their companies, to leave and work in a foreign country. This brain drain of the top employees would cause enterprises and the economy great damage. The absence of a skilled executive, for example, might cause a company a loss of thousands of dollars, and it would take quite a long time to hire another one. Another thing is that it would be almost impossible for an economy to thrive when its well-educated and skilled workforce is willing to work in another country where they are offered extraordinarily high pay packages. In conclusion, despite the arguments for a maximum wage cap, I believe that governments should not set a limit on the wages of the highest earners as it would have adverse impacts on business and economic growth.
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