Should We Have A Maximum Wage Law? (salaries, ethical, suspect)
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It is far more important to direct our attention and effort at passing a living wage law rather than a maximum wage law.
.......... The goal here is to reduce poverty.
Why not direct your attention and effort at passing a generous wage law,... the goal being to increase wealth?
Or is it 'First things first'?
Last edited by PamelaIamela; 05-16-2018 at 07:39 PM..
I don't believe in wage or price controls, at any level.
I want to chuck the minimum wage so I cannot, in good conscience, support a maximum wage.
Are those who oppose a maximum wage as consistent?
I support a minimum wage law. However, my reasoning is different than some might imagine. I think in the long run, the market tends to determine wages. What the minimum wage law really is a statement of public policy. In effect, we are telling employers who do not wish to pay a certain amount per hour for a job that we don't want that job done. Some work is really so low skilled that it if it is going to be done it should be done in a third world country with a lower standard of living than in the USA. Since the market determines wages, a minimum law is only successful in the long run if the wage rate set is close to what the market says is a minimum wage. Given the abundance of jobs that pay the minimum wage or a dollar or two an hour more, I would say the minimum is pretty close to the market rate for unskilled labor. The minimum wage law also really is a necessary protection for people further up the pay scale. If employers could get away with it, they'd lower the wages for people earning $20 an hour. However, the minimum wage creates pressure that causes employers to keep wages up for this group because it creates a bottom beyond which employers cannot go.
The law must also be viewed in combination with other laws that create a forty hour maximum work week and require payment of overtime wages at the rate of 1.5 X actual wages. This legislation, taken together, defines the minimum contours, that any job in America must take. It is part of a total package that prevents exploitation of workers.
Given the real reasons for the minimum wage, I don't see it as inconsistent to also oppose a maximum wage.
Last edited by markg91359; 05-16-2018 at 08:05 PM..
... The law must also be viewed in combination with other laws that create a forty hour maximum work week and require payment of overtime wages at the rate of 1.5 X actual wages. This legislation, taken together, defines the minimum contours, that any job in America must take. It is part of a total package that prevents exploitation of workers....
No, smaller companies do not have to pay time and a half. This is true for government agencies and those who do work for the government and any others that gross $500,000 or more (unless it's been increased/changed). My wife worked for a restaurant for a year or two that had a second building next door for groups. No kitchen in the second building, just tables and chairs. Food was carted or carried by hand from the main building to the second one.
The owner called it two businesses. That kept the gross under $500,000 for both. I'm not sure that would have held up in court had he been sued. Wife liked the boss but didn't like working overtime for straight pay. She finally quit and took a job in another restaurant.
Theoretically, we have had a maximum wage law in the past. Franklin Roosevelt, in the 1930's, suggested a wartime cap of $25K a year, $400k in today's dollars, but chose Option B: 88% tax rate on anything over $200k.
And we had the 90% tax rates during the Republican administration of Eisenhower.
In 1944-45 the top rate was 94%. As far as a maximum wage law, horrible idea. Why would anyone take the risks and put in the hard work it takes to get ahead when you are just going to take it all away?
And we had the 90% tax rates during the Republican administration of Eisenhower.
Some suggest a limit of $5 million, and others at $500k, and anything above that, tax of 100%.
Another suggestion would be ratio's of executive pay to employee income, like 12 to 1
Comments?
The economy hummed along brilliantly when tax rates on those in the top 5% or so were so high. I don't really see what benefit there has been for the country to drop those tax rates over the decades. It was the law of diminishing returns. But, since everyone is always seeking that almighty dollar, if you had to work three or five times harder to make every dollar past a certain amount, people would still do it anyway.
In today's world, going back to 88% tax rates is a pipe dream. Also, nothing should be taxed at 100%.
Problem with forcing an execute to employee income ratio is that they'd just find other ways to get around it. Executives would get their 12 to 1 and then they'd get all sorts of other non-cash compensation anyway.
So do you think everyone should be free to decide to opt out of society and pay no taxes? Even though they'll inevitably be using infrastructure paid by others? Taxes have been around since biblical times - get used to it!
That's not what we're discussing in this thread, but ok.
I'd like to see taxation eventually phased out in favor of user fees for everything, or as much as possible. Some things, I don't see how that could happen effectively and efficiently, but maybe someday. I feel this way because taxation is a form of extortion-money is taken from one party under threat of force (imprisonment, fine, or other punishment) by another. That is pretty much the definition of extortion, and that's how it would be considered if it were anyone other than government doing it.
But until we figure out a way to provide necessary or vital services through a user fee based system, I have little problem paying for the goods and services that I use which government provides.
You might want to keep any open flames away from that strawman though, could catch fire.
That's not what we're discussing in this thread, but ok.
I'd like to see taxation eventually phased out in favor of user fees for everything, or as much as possible. Some things, I don't see how that could happen effectively and efficiently, but maybe someday. I feel this way because taxation is a form of extortion-money is taken from one party under threat of force (imprisonment, fine, or other punishment) by another. That is pretty much the definition of extortion, and that's how it would be considered if it were anyone other than government doing it.
But until we figure out a way to provide necessary or vital services through a user fee based system, I have little problem paying for the goods and services that I use which government provides.
You might want to keep any open flames away from that strawman though, could catch fire.
There is little point in arguing with someone who analogizes taxes to extortion. Taxes may be too high, but the basic notion that you can somehow run a government without taxes is ludicrous to the point of not requiring a rebuttal.
Only libertarians really believe taxes are extortion. Those of other political stripes view government as a social contract between citizens. In exchange for the benefits of living under the state, we agree to treat some measure of money and even liberty. That's basic political theory. I try not to waste my time arguing with those who cannot accept that premise.
Taxes are imposed to fund government. The budget of government is set by an assembly elected by a majority of people at both state and federal levels. Its the representative nature of the process that destroys notions of "extortion" or "stealing".
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