So im obviously for reform when it comes to employers treating their employees better, better conditions, etc. One of the main points I see that needs changing is the wage gag in so many companies. For me a lot of it comes down to wealth inequality.
The argument usually goes “raise the minimum wage or people should pay more.” Followed by someone saying “well then the price of everything will just go up?”
I'm personally not an economist and I don't know the logistics of this argument and for the most part it's all speculation.
My proposed idea however is this; if the government can set a minimum wage what is stopping them from setting a cap or a maximum wage? Genuine question, what would happen if, for example the government came in and decided CEOs/business owners are legally not allowed to make 50x their entry level employee. (I don't know what an appropriate difference should be so let's just take 50x as the example) if the wealth inequality is so drastic I see this as possibly the best solution to adjusting this gap. This would incentive employers and owners to pay their own employees more so that THEY themselves could make more.
I just want to know if their are any economists that could explain the potential draw backs of this proposal. Would it benefit society? Or cause a collapse in the economy?
Tldr; what if the government stepped in and set a maximum wage?