“Should A Maximum Wage Law Be Put In Place In United States?”

Introduction:

The maximum wage was imposed by some social democratic governments like Sweden in the 60s. However, the policy has been criticized and the militants later had a "tax revolt" and demanded the government reduce the top marginal tax.

In a campaign of Green Party presidential nomination, Jello Biafra advocated implementation of a maximum wage in the United States. Biafra has claimed that is would increase taxes for the rich and reduce taxes for those in lower and middle classes.

In England, the status of artisans of 1563 brought under statutes of forced labor and fixed the maximum wage scales. To counter the shortage of labor prevailing wage, American colonies were increased in the 17th century which has created a salary cap and minimum hours of employment. (Eatwell, Pp. 476-478)

The decay which is now the minimum wage, which imperfectly protect those who benefit, is one facet of the collapse of the social compact that has worked throughout the war boom and has then shattered. Statistics on the labor market in the U.S. says that 95% of employees throughout their career never ask their company for a pay rise. This critical condition raises a question for U.S government that “should a maximum wage law be put in place in the united states”

Discussion:

A maximum wage, also often called a wage ceiling, is a state limit on how much income an individual can win. It is a related economic concept that is complementary to the minimum wage is currently used by some governments to impose a minimum income. Minimum wages and maximum are methods by which wealth can be redistributed in a society .

The maximum wage, or better, the maximum remuneration, including bonuses and premiums, is almost a necessity. The highest paid employee of a company lives in the same company as that is the most poorly paid. If the first win, as is the case today, 300 or 400 times, 500 or even 600 times more than the second, he has no chance to understand his world and therefore make reasonable decisions that concern. Recognizing this, the many researchers had proposed that the salary of the entrepreneur can never be more than ten times that of the lowest paid worker.

In USA, only 5% employees have seen their incomes rise over the past five years. The other, 95% saw their incomes stagnate or decline frankly. Only 5% of the population monopolizes most of the wealth. Inequality in 2005 reached their highest level since 1928: the richest 1% earns an average of 440 times the average salary of 150 million Americans at the bottom. It is easier in France for a child born to a poor family to climb the social ladder in the United States. Since 2001, U.S. corporate profits rose 40% while wages rose only 0.3% at the point they no longer know what to do with their money and spent more than $ 100 billion in redemption of their shares ...