Take a look at Jessie Ventura (former wrestler and Governor of Minnesota) and his idea for a “maximum wage.”
This is idiotic for more than one reason. Let’s take the most obvious:
What are you going to do when all of the Doctors, Lawyers, and Business owners reach this “maximum wage,” see that there is no point in working for the rest of the year, and go on vacation from October to the end of the year?
With no economic incentive to continue expanding, why would the Walton family keep all those stores open, if they aren’t going to get paid for the extra effort it requires?
Let’s say that WalMart calculates that the owners of the company hit this “maximum wage” with the profits from only 100 stores, so they close all of the “extra” stores and lay off the workers. Now what?
It isn’t just WalMart. Pick a business: Record companies, movie studios, sports teams, car companies. Name a business. The owners of those businesses are not just going to keep working for free from whatever date they hit the maximum wage. What would YOU do if your employer told you: “You have hit your maximum wage for the year, so you have to work for free for the rest of the year.” I bet you would take a bit of vacation.
Even if you require a person to work all year, they will just shorten their work week to 4 days. Or maybe only work 2 hours a day. “Sorry that you are having a heart attack, but the Doctor went home because he hit his maximum daily wage. He can probably see you next Tuesday.”
You just can’t put a cap on wages and expect that people are not going to change their behavior.
Jessie Ventura is a moron.