When I was studying in school, I was taught the president of India gets the highest salary and others including corporates gets salary less than him/her. Now I see people getting salary much more than the president of India. Flexi salary is the name of the game. People in IT leave their current job and opt for a new job based on salary. IT people get better salary from their peers in other fields.
It does create a vibrant middle class with nice salary and help increasing the GDP. But it comes with a cost.
1) The higher salary creates higher inflation. People can afford sugar 50 rs per Kg. So make the sugar Rs 50 per kg.
2) It creates a division between the people the elite and average
3) It makes everything unfordable starting from house to school. My total education cost is less than one year education cost of my daughter.
4) Builders increase the price of real estate hoping the new middle (elite ) class can afford it and one day the bubble is going to burst.
5) In this process India become a costly place to outsource and there are other cheaper alternatives available.
Common men find it difficult to buy a house. Even average paying software engineer can not afford to buy a house in Bangalore. Her life goes in a rented house.
We do not want a high salary rather want a quality of life. If I were to get one third of my salary but can stay in my own house and give quality education to my kids, I would be more happy than getting salary tripled and not able to buy a house and give quality education to my kids. Education and house are the the essential expenses of the middle class people whose expenses are going at a rate higher than the income level.
So government needs to put a cap on salary for every person, so no pouching based on salary and regulate house pricing and enable quality free education.
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