Does anyone need 50 million a year ? Anything above 50 million dollars could be spent on curing diseases or rebuilding our infrastructure or improving our failing public schools. Kim Kardashian alone made 74 million dollars in ONE year from a single phone app. I'm not saying hand out money to the poor. I'm saying rebuild and cure disease.
Mandatory salary caps should be increased to help the poorer citizens. With the line between poor, medium class, and rich shrinking slightly, most of the nations citizens will benefit. The poor live working for very minimal pay, which with that pay a lot of times they can't even afford supporting their family with several jobs.
Mandatory salary caps should be introduced to keep society fair and just. There is no need for a floor worker to make $10 an hour while a CEO of the same company makes $30 million per year. That money is better distributed to all employees. In addition, salary caps keep capitalistic extremes in check.
The salary caps hurt everyone but, more importantly, they hurt the poor that they are intended to help. Te supporters of such a motion of a fundamental misunderstanding of wealth and economics. A salary cap *can only* help the poor if we operate in a zero sum game. That means that if you there is a fixed amount of wealth, and that wealth can neither be created nor destroyed, then a salary cap would help the poor.
But that is not the case. We do not live in a zero sum game. That my neighbor's quality of life improves doesn't mean that mine becomes worse. People who make money without exception do it because they provide a valuable service or product. If you create a salary cap you limit trade and production, and when you do that you inherently limit consumption, and thus this proposal would make the whole society worse.
Further, suppose that we had a 500k salary cap. Do you want an aristocracy? Because as of today, 4/5 in the Forbes 400 made it there non their own. With a scary cap you cut off upward mobility, and you'd eventually find that there entirety of the Forbes 400 (after we've had a salary cap for a while) were born on it. Do you really think we're going to help the poor by limiting production, limiting trade, destroying jobs, and creating an effective aristocracy?
A salary is an arrangement made between two parties as to the value of the services one provides. It is determined by the employer and employee. A salary cap is the imposition by a third party who is less knowledgeable about the value of the work done by one individual in exchange for another. If a hospital values a neurosurgeon's work, they will offer to pay them a lot, if there are salary caps, there is less reason for one to learn neurosurgery as opposed to a field of medicine that is less rigorous and pays just as much.
It is not a good idea to create a mandatory salary caps. Introducing it would cause issues and a lot of outrage in my opinion. I think that placing a cap on salary would leave people without a lot of room to make their money and will keep them from having the funds they might need.
In order for a free society to exist, it is necessary to restrain our government from having any more power to regulate things than absolutely necessary to keep the peace. The intrusion of the power of government into salary negotiations between employer and employee gives government to power to monitor and regulate a large section of our society. This would undermine the freedom of the entire society.