Paddy Tipping's maximum wage bill

[ymu]

Is it an economicaly proven idea?

There's certainly evidence that the countries with the greatest economic equality (Scandinavia and Japan) also have the greatest quality of life as measured by various indices such as personal purchasing power, crime rates, levels of education, social stability.

Whether or not achieving greater economic equality through a maximum wage would bring about the same outcomes is another question, of course.

 

[ymu]

Here ya go. From a book review, if you want more reading.

The connection is spelt out with stark clarity in Richard Wilkinson and Kate Pickett's remarkable new book The Spirit Level. Income inequality, they show beyond any doubt, is not just bad for those at the bottom but for everyone. More unequal societies are socially dysfunctional across the board. There is more teenage pregnancy, mental illness, higher prison populations, more murders, higher obesity and less numeracy and literacy in more unequal societies. Even the rich report more mental ill health and have lower life expectancies than their peers in less unequal societies.

http://www.guardian.co.uk/commentisfree/2009/mar/15/equality-economy-will-hutton

The Spirit Level: Why More Equal Societies Almost Always Do Better
Richard Wilkinson and Kate Pickett

 

[ymu]

And there's always my favourite graphic.

 

[el-ahrairah]

Why not set any organisation's minimum wage at no less than 10% of its maximum wage. With a minimum wage as well. That way no-one earns less than £5.whatever an hour but any director or board who want to increase their wages must also at the same time increase those of its lowest earners. Otherwise the money just goes to shareholders and those who can work out ways to redistribute the profits through other means.

 

[el-ahrairah]

Which after tax is barely enough to send the children to school let alone buy a house or eat.

lol wut?

You'd best be trolling.

 

[_float_]

Why not set any organisation's minimum wage at no less than 10% of its maximum wage. With a minimum wage as well. That way no-one earns less than £5.whatever an hour but any director or board who want to increase their wages must also at the same time increase those of its lowest earners. Otherwise the money just goes to shareholders and those who can work out ways to redistribute the profits through other means.

But wouldn't a company just shed lower waged staff and use outside contractors instead? So you'd get a bunch of small (blue-collar) low-waged companies with contracts with the (white-collar) high-waged company?

 

[_float_]

Whether or not achieving greater economic equality through a maximum wage would bring about the same outcomes is another question, of course.

That's what I am asking: what has the maximum wage been shown to achieve, either in real life or even in theory (ie economic models etc)?

How have Scandinavia and Japan achieved their more equal societies?

 

[ymu]

That's what I am asking: what has the maximum wage been shown to achieve, either in real life or even in theory (ie economic models etc)?

How have Scandinavia and Japan achieved their more equal societies?

Scandinavia does it with progressive taxation, which is (IMO) the only way to achieve a maximum wage.

Japan is low tax, I believe, so presumably they have a more equal distribution of incomes to start with. Or rather had - it seems they've taken a dive in the income equality stakes recently.

 

[tbaldwin]

Why not set any organisation's minimum wage at no less than 10% of its maximum wage. With a minimum wage as well. That way no-one earns less than £5.whatever an hour but any director or board who want to increase their wages must also at the same time increase those of its lowest earners. Otherwise the money just goes to shareholders and those who can work out ways to redistribute the profits through other means.

The easiest way of introducing a maximum wage would be to do it first through publically funded organisations.
It would be comparatively easy to do that way and could then have a knock on effect which would mean it could be introduced right across the board.

People moan continuosly about inequality growing this is a practical way of doing something about it!

 

[teuchter]

http://www.urban75.net/vbulletin/showthread.php?t=246714

 

[littlebabyjesus]

I don't disagree with the principle at all, although I would favour something closer to Plato's formula of four times minimum.

However, as kabbes points out, with the current system of ownership, it is utterly impossible to implement. First you need to tackle the shareholding class, who make money out of owning rather than doing. Only then would this kind of policy make sense.

That said, a nice juicy 80% top rate of tax might do it.


Won't happen any time soon.