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elaboration
A '''maximum wage''', like a [[minimum wage]], is a government control on earning. It sets a cap on the amount of income that a person can take in. This is seen as a method for redistributing capital from the wealthy to the poor. Some left-leaning economists propose that a maximum wage would allow government control of inflation. Most economists doubt the utility of such a measure, pointing instead to the existing government control over the supply of money. Economist [[Milton Friedman]] has pointed out that a maximum wage would discourage innovation, as no amount of additional innovation could increase one's wealth. [[Sweden]] briefly imposed a maximum wage in the 1960s, but repealed it in the face of public criticism.
A '''maximum wage''', like a [[minimum wage]], is a government control on earning. It sets a cap on the amount of income that a person can take in. This is seen as a method for redistributing capital from the wealthy to the poor. Some left-leaning economists propose that a maximum wage would allow government control of inflation. Most economists doubt the utility of such a measure, pointing instead to the existing government control over the supply of money. Economist [[Milton Friedman]] has pointed out that a maximum wage would discourage innovation, as no amount of additional innovation could increase one's wealth. [[Sweden]] briefly imposed a maximum wage in the 1960s, but repealed it in the face of public criticism.
Like any [[price ceiling]] a maximum wage would lower employment levels for those who would otherwise earn more than the maximum wage, creating a shortage of high skilled labour.
[[Category:Economics]]
[[Category:Economics]]