Waikato history student Ryan Wood writes in the Herald:
This is where the maximum wage comes in. If the top salary is legally fixed at, say, $200,000 a year, these economic miracle-workers running companies will have no choice but to start their own businesses where, as shareholders, they can indulge in the dividends they deserve. The creation of new companies will in turn lead to more jobs, thus negating the need for any “starting-out” wage.
A maximum wage also has a trickle-down effect. The millions of dollars that would have been paid to CEOs could instead be paid as bonuses to workers, or used to lift the average wage of employees at the company. These people could then spend their extra income, further supporting the economy.
Critics are likely to label the concept of a maximum wage as “socialist”. In fact, wage reduction is a neo-liberal idea. The National Government has already espoused it, although their focus was on workers rather than their bosses.
A maximum wage is indeed not socialist, but full out communist.
You see it has been tried. In several countries. In the USSR they had maximum salaries. They had the exact view that Ryan had. They though no one should earn over a certain amount as a salary.
It failed. It was a disaster.
Ryan seems to think we live in isolation from the world. I’d love to see him find a surgeon to operate on him, should he need it, with a $200,000 salary cap. They’d all be in Australia.
Tags: communism, Wages