) The United States has established a minimum wage law. Should there be a maximu
ID: 1167533 • Letter: #
Question
) The United States has established a minimum wage law. Should there be a maximum wage?
b) What standards should be used to establish a fair wage? Are the standards for executives different from those for hourly workers? What factors determine what someone deserves for pay?
c) Should salary be tied to results, such that an executive whose company loses money should earn less than an executive whose company makes profit?
d) Are large salaries more justified as incentives to produce beneficial sequences, or as rewards for accomplishments? Are there available alternatives to money that might serve as incentives and rewards?
e) Can anyone ever make too much money for his or her own good?
Explanation / Answer
Minimum wages are provided to keep the interest of the workers so that they could afford their minimal basic necessities by selling their services. It prevents the exploitation of workers.
Maximum wages would put up the ceiling in the wages i.e. someone cannot be paid more than $X. This will create disincentive in the economy. As people work more, provide more services to earn more income. No, there should not be the law on maximum wages.
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