Here’s a bit of source material for your post on inequality, Heather.
https://www.washingtonpost.com/news/worldviews/wp/2015/01/05/how-inequality-made-these-western-countries-poorer/

Thanks Diane. 🙂 Given the trouble the ensued when Obama increased the minimum wage just for federal employees, I really can’t see there being any recognition of the need for something like a transport allowance anytime soon. We do have those here, but it’s variable depending on the employer and the union. I’ve had home help who get paid generous travel allowances if they live more than a certain distance away.

The minimum wage I refer to is for those 20 years and older. There’s a lower rate for people are younger here too. I think it’s set at 80% of the minimum wage.

When I worked in the public service, there was talk of an extra payment for living in Auckland, but I don’t know if anything ever came of it or if any companies do that. I do know some people get benefits for living in very isolated rural areas.

In NZ people on govt superannuation are allowed to earn (I think) $9,000 before it affects their super payments. However, I have heard of someone who works full-time and is only paid $9,000 per annum – her employer tells her he’s not allowed to pay her any more than that. Absolutely disgusting.

The issue if income inequality is another post I plan to write at some point, though it probably won’t be the next economic one I do.

Setting a maximum wage is complicated because there are so many ways someone can be financially rewarded. The wage might be limited, bit there are bonuses; cars, house, clothes and all sorts of other allowances; stock options; etc etc that will be used to replace the income. Also, CEOS are in an international marketplace, and they will just leave the country unless the whole world agrees to a maximum wage.

http://www.thelocal.de/20160224/almost-half-of-germans-want-legal-maximum-wage

Regardless of my anecdote, this is a great piece Heather: thorough, erudite and compelling. I look forward to more economic posts that you mentioned on income inequality and how economic stimulus is created via a higher minimum wage. Though I think you explained this and the caveats therein rather well.

Lastly, I think another group that competes for minimum wage jobs (and thus is vulnerable to exploitation) is senior citizens. Walmart immediately comes to mind. I don’t know if this is a trend in other countries, but it seems commonplace in the US today.

The problem with CEOs and their usually outrageously high salaries is the benefits which go with these salaries, such as protected pension benefits, usually a percentage of income, golden goodbye payments, even when said CEO completely f***ks the Company, special stock / share options, the list goes on and on and we have all seen the examples of useless CEOs who never suffer from their actions unlike the poor employees.
Better employment contract laws for directors not protected buy state / country employment laws would be a good place to start, in my opinion.
I speak from experience as a one time Director of a Limited Company.

(What we should really have is a variable minimum wage based on location or other extenuating circumstances–a worker in Manhattan, say, is not going to be able to afford housing anywhere near, thus spending much more for transportation amongst other budget items. Not that I think anything like that will ever come to pass!)

Next can we work on a maximum wage for CEOs?