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Michigan State University

Poverty and Inequality: Maximum Wage

Finding information to understand and address poverty and inequality in the U.S. and around the world

Background

Maximum wage, also referred to as wage ceiling, and often tied to a wage ratio is an approach often used to justify slowing increases in inequality. President Franklin Roosevelt suggested a maximum wage of $25,000 during WWII, which led to the imposition of a marginal tax rate of 93% on upper incomes. Wikipedia offers a good overview. Robely George, in his book Socioeconomic Democracy, offers an approach that would limit Maximum Allowable Wealth (MAW) by tying it directly, through a democratic process, to a Universally Guaranteed Personal Income (UGI).

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Subject Guide

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Julia Ezzo
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517-884-6387