In some countries, a few people earn extremely high salaries. Some people think that this is good for a country, while others believe that the government should control salaries and limit the amount people can earn. Discuss both sides and express your opinion.

Nowadays, the problem of some counties having a small group of people earning excessively high salaries is widely discussed.

In particular

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, some people think the governments intervene by placing a limit on salaries. In

this

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regard, I believe that government should not intervene and that exceptionally high salaries actually benefit the whole

country

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, especially from an economic point of view.

First

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, in countries where some people earn very high salaries there is a high demand for luxury products and services (

for example

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yacht and haute couture dresses). As a

consequences

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consequence

, in these countries, companies operating in the luxury industry may develop and grow.

As a result

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, more jobs will be offered to the rest of the population, decreasing the unemployment rate.

Moreover

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, people with earning much are more likely to become entrepreneurs, due to the availability of financial resources.

Consequently

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, as more companies are founded the overall economy of the

country

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will benefit as more services will be required and more jobs will be offered.

By contrast

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, in case the government decides to opt for limiting a limit on

salaries fewer

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salaries, fewer

people will be motivated to work more and be more productive.

This

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will lead to lower productivity of the government in question.

Hence

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, the whole economy of the

country

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would be damaged. What is more, as salaries are limited, people with high capabilities and competences would be more prone to emigrate towards countries in which they can earn more.

This

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will result in lower comparative advantage of the

country

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in terms of innovation and quality of the work, resulting in lower exports. As exports lower, local companies will be forced to reduce their number of employees,

thus

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leading to a higher unemployment rate. To sum up, if governments decide to limit salaries the economy of the

country

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will be strongly damaged as fewer companies will operate in the countries and a lower number of jobs will be offered.