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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


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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Julia Ezzo
Michigan State University