>if everyone is paid the same where is the incentive to do more? how is morale affected in the reverse when you know you make as much as someone else who decide

>if everyone is paid the same where is the incentive to do more? how is morale affected in the reverse when you know you make as much as someone else who decides to slack? The U.S. federal government has this in spades. Lots of people making the same salary, and no incentive to do more, and no way to weed out poor performers. Yet the government bureaucracy is still able to perform, sometimes admirably. The private sector has an important tool: fire the slackers. If someone is not performing well at a higher-than-average salary: lay 'em off. Hire someone motivated to perform and make a higher-than-average salary.