Increasing Minimum Wage, Imposing Wealth Tax And Imposing Maximum Wage

1098 Words Aug 11th, 2015 null Page
Inequalities are still present now as well as in the past, but the inequality varies from one country to the other. On one hand, “Russia has one billionaire for every $11 billion in wealth while, across the rest of the world, there is one billionaire for every $170 billion” (RadioFreeEurope/RadioLiberty, 2015). Whereas in Norway the top 20 percent earn four times more than the bottom 20 percent (Oecdbetterlifeindex.org, 2015). Although some would argue that government policies are un-efficient and time consuming such as wealth tax, increasing minimum wage and introducing maximum wage. However, some would disagree and suggest the opposite that without such policies the gap between rich and poor expands. This paper will point out that policies like increasing minimum wage, imposing wealth tax and imposing maximum wage do actually benefit in reducing the inequality.

With regards to the problem of wealth inequality, wealth tax seems to be the most adequate and practical way to resolve it. However, it sometimes argued, that the problem with wealth tax is that it is difficult for government to value the riches wealth, even the rich does not know exactly how much they worth. According to the recent date from the Federal Reserve (Wall Street Journal, 2012) shows how one percent of the top wealthy assets are valuable, which means it can be sold easily and this is about 38 percent of their wealth. But about 62 percent of their wealth is “non-financial” which means it is hard for…

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