This has been written about before, very succinctly with more technical data, and no doubt will again. But I do hope I do a better job than the wiki.
Laissez-faire capitalism has no link between people. Communism has no distinction between people. To apply the Buddhist principle of the middle path, the best economic system will not regard all people as identical nor as infinitely different in value. By the logic outlined above, I found an economic perspective.
Job droughts, mechanisation, computerisation, distribution of responsibility or wealth hidden by international organisations and other factors are of great concern to anyone with both a social conscience and an economic interest. These processes tend to percolate profit to the peak of the company. If a job can be automated or outsourced cheaply, it is done, then the profit is pocketed by those able to do so. It’s financially sensible, and it produces inequality in the global & domestic communities. Some discussion of this dynamic tends to reductio ad absurdum (no that’s not a spell from Hogwarts), the dynamic it is real and it does matter.
Global industry is the new norm, the cotton to garment production line is illustrative here. Perhaps picked in the land between the Middle East, Asia, Russia & Europe (Turkmenistan / Uzbekistan), shipped to Bangladesh for processing into garments, from there sent to the sale point, before finally being purchased by a consumer, who’s payment is the ultimate justification of the whole process. The fundamental underpinning of the global production & distribution process is the almighty dollary-doo (in various national representations), which shows the truth the old adage, ‘money makes the world go round’.
Upper management of the cotton industry is not united in organisation of the process, but it is the upper management who link the meta-process together. They do contribute value by this organisation. However, if one imagines removing various classes of worker from the cotton industry; picker, weaver, shipper, sales, CEO, etcetera, the removal of the uppermost management would see the organisation stagnate and make no changes, and many companies would ultimately fail, although would McDonalds fail without a CEO? The removal of other roles from the industry, from sewing or sales, would see no cotton clothing produced and no final sale. By this logic it is unreasonable that the profits are focussed upwards when considered from a perspective of functional worth.
A link between the wages of each class of worker in a single organisation, industry or nation, would act to restrict this dynamic. A CEO and the board of executives, in search of higher wages for themselves, couldn’t vote on it, but would be forced to improve the business as a whole. Large corporations naturally produce greater wage inequality than small business, and so this economic policy is an impediment to the powers of mega-bucks and a small boon to entrepreneurs. The same restriction across an industry would mean each purchase could be made with confidence about the quality of life of the people in the supply chain, by so doing universally distribute the moral value commercialised in such forms as Fair Trade Coffee. CEO & executive board pay should be limited by the dollar a day workers.
Finally the national limit, which is outside the linear processes outlined previously. Necessities come before luxuries, surely those who provide our vaccines, lunch and plumbing are more valuable to, and more relied upon by, the community. So if each dollar represents one value token to be honoured by any sale within that community, then with a national pay limit, the community will know those who provide the bare necessities will earn will even if others earn more despite less socially worthy work. Also, a national limit would see greater consistency in earnings, which in turn immediately leads to the Tax Office seeing a slim increase from each worker, enabling easier budgets and in turn, social projects. It must be stated clearly, that without global change, a nation which pursues this alone also encourages job flight to nations without such measures, and creation of shell companies to secrete any wage paid in excess of the limit. That’s only financial sense after all.