Latest / Why We Do What We Do / Tipping Point
Transcript
- 0:03Speaker 1: You're listening to Why we do what we do? Welcome
- 0:16Speaker 1: to Why we do what we do. I am your
- 0:19Speaker 1: Please Tip Me host Abraham.
- 0:21Speaker 2: And I am your twenty five percent host Shane.
- 0:23Speaker 1: We are a psychology podcast. We talk about the things
- 0:26Speaker 1: that humans and non human animals do, and sometimes we
- 0:29Speaker 1: talk about the weird traditions that we have picked up
- 0:32Speaker 1: that nobody likes, but we do them anyway.
- 0:36Speaker 2: And that, my friends, is tipping, you know, and we'll
- 0:38Speaker 2: talk about this, I'm sure, but I wonder if the
- 0:40Speaker 2: reason tipping is so aversive is because it's so confusing.
- 0:45Speaker 1: That could be part of it. We'll talk a bit
- 0:47Speaker 1: about the reason that persists. But you know, one of
- 0:50Speaker 1: the things that people have never liked about it is
- 0:52Speaker 1: that you are paying for things twice. Sure, you get
- 0:55Speaker 1: to pay for it, and then you get to pay
- 0:56Speaker 1: for that same thing again. You don't get any more,
- 0:58Speaker 1: you just are. You're just paying more for the thing
- 1:01Speaker 1: that you already agree to a price for and are
- 1:03Speaker 1: now spending even more money than you thought you would. Right,
- 1:06Speaker 1: There's a lot to unpack there, and we will get
- 1:08Speaker 1: into all of that. But if you are joining us
- 1:10Speaker 1: for the first time, thank you so much for being here.
- 1:11Speaker 1: We are happy to have you and we hope that
- 1:13Speaker 1: you enjoy what you hear in this discussion today. And
- 1:15Speaker 1: if you're a returning listener, then thank you for joining
- 1:18Speaker 1: us again. And we would like to hope that you
- 1:21Speaker 1: enjoy what you hear in this one and that you
- 1:22Speaker 1: continue to join us in the future. And either way,
- 1:25Speaker 1: if you have if you're in either of those groups
- 1:27Speaker 1: and you have not already taken the plunge into supporting us,
- 1:30Speaker 1: one way that you can do that is to join
- 1:32Speaker 1: us on Patreon and there's all kind of bonus stuff
- 1:35Speaker 1: that you get over there. You can leave us a
- 1:36Speaker 1: rating and review, pick up some merchant or merch store,
- 1:39Speaker 1: or go tell a friend. Those are all ways that
- 1:41Speaker 1: you can help. And I will describe more about these
- 1:45Speaker 1: ways of supporting us at the end of this discussion,
- 1:47Speaker 1: but it wanted to get them out of the way
- 1:49Speaker 1: just so that in case you were jumping into this
- 1:51Speaker 1: and you're like, I already like the cut of this, guys,
- 1:53Speaker 1: jib I already want to support them, those are some
- 1:55Speaker 1: ways you can do it. Love that before we even
- 1:58Speaker 1: jump into our main topic, we have to acknowledge that
- 2:01Speaker 1: it is July ninth and that is the Call of
- 2:04Speaker 1: the Horizon day, so uh celebrates in whatever way it
- 2:08Speaker 1: makes sense to you.
- 2:09Speaker 2: Yeah. It's also Fashion Day, so there's that.
- 2:13Speaker 1: We've talked about fashion a little bit on this show,
- 2:16Speaker 1: so not explicitly, I think in an episode, although kind
- 2:19Speaker 1: of I don't remember we did at some point. But yeah,
- 2:22Speaker 1: it is Murderdom of the Bab Day. I honestly don't
- 2:27Speaker 1: know if I want to know more about that. I
- 2:28Speaker 1: just like the name of the day so much.
- 2:31Speaker 2: Yeah, I think I'm going to leave it right there
- 2:33Speaker 2: and just we'll do with that what you will write
- 2:35Speaker 2: in and tell us what you think if you're celebrating.
- 2:37Speaker 2: It's also National don't put all your eggs in one
- 2:39Speaker 2: omelet Day unless you only have one, or unless you
- 2:43Speaker 2: want a really big omelet.
- 2:45Speaker 1: Or that it is national no broad day, no comment
- 2:49Speaker 1: but fun.
- 2:50Speaker 2: Yeah, enjoy yourselves. It is a National sugar cookie Day. Delicious.
- 2:55Speaker 2: I love that.
- 2:56Speaker 1: It is Durian fruit Day. Delicious to some people.
- 3:00Speaker 2: Yes, it's National dimples Day, cute to some people.
- 3:04Speaker 1: So smile. It is Argentina's Independence Day.
- 3:09Speaker 2: I love that. It's Wimbledon. I guess if you like tennis.
- 3:13Speaker 1: Sure, it is a rabbit week. Those rabbit enthusiasts. I
- 3:18Speaker 1: love rabbits.
- 3:19Speaker 2: They're cute, they're adorable. I had a friend who got
- 3:21Speaker 2: a rabbit and it clawed him up really bad, and
- 3:23Speaker 2: he was like, I didn't know rabbits could do that.
- 3:25Speaker 2: And I was like, welcome to the world of rabbits,
- 3:27Speaker 2: my friend.
- 3:28Speaker 1: Butanicola, we'll drink.
- 3:30Speaker 2: That's what I'm saying. I'm saying now, Yeah, I had
- 3:33Speaker 2: a thirst for blood. It became a real problem f rohim.
- 3:35Speaker 2: It's air conditioning Appreciation Days. As a Floridian, that is
- 3:39Speaker 2: every day for me.
- 3:40Speaker 1: Yeah, I was gonna say absolutely, that's particularly now be
- 3:45Speaker 1: nice to New Jersey. Week is the week it is
- 3:48Speaker 1: that they tell us at least.
- 3:50Speaker 2: Yeah, I mean I dress the pine bearns seem nice.
- 3:54Speaker 1: There you go.
- 3:55Speaker 2: That's as nice as I could go. All Right, it's
- 3:57Speaker 2: a dog days of summer.
- 3:59Speaker 1: It is understandably. I guess Freedom Week because we are
- 4:04Speaker 1: very recently around probably this is why we're very recently
- 4:07Speaker 1: around the United States Independence Day. I guess that's why.
- 4:11Speaker 2: Yeah, And it's also probably our last freedom week, so
- 4:14Speaker 2: you know, celebrate it why you can.
- 4:16Speaker 1: We're eliminating it as much as humanly possible. In the
- 4:19Speaker 1: United States. So yes, yeah, yes, celebrate freedom while you're
- 4:24Speaker 1: free to celebrate freedom.
- 4:25Speaker 2: Yeah, yeah, exactly. It is National Aborigines An Islanders Day
- 4:29Speaker 2: Observance Committee Week.
- 4:30Speaker 1: That's a mouthful. That might be the longest day I've
- 4:32Speaker 1: ever seen on here.
- 4:34Speaker 2: Yeah yeah, so far. Yeah.
- 4:36Speaker 1: National Ferriers Week. Cool.
- 4:39Speaker 2: Yeah, And it's also Shark Week. So but again, being
- 4:42Speaker 2: in Florida, every day, Shark week because there's sharks everywhere
- 4:46Speaker 2: all the time.
- 4:47Speaker 1: Fair, fair enough, all right. So those are holiday things
- 4:51Speaker 1: that you can know about and or maybe you already know,
- 4:54Speaker 1: and we're just shouting out to you nowhere of those days.
- 4:58Speaker 1: But we're not here to talk about those holidays specifically.
- 5:01Speaker 1: We're here to talk about things that we do and
- 5:04Speaker 1: understand or attempts to understand why we do them. And
- 5:07Speaker 1: a huge part of understanding why we do them is
- 5:11Speaker 1: understanding the history of how we sort of got there,
- 5:14Speaker 1: and then the contextual variables that continue to maintain support
- 5:18Speaker 1: or affect the trajectory of those things. So, as we said,
- 5:21Speaker 1: we're talking right now about tipping, and it is the
- 5:24Speaker 1: kind of tipping you're probably thinking about. It is the
- 5:27Speaker 1: idea of paying extra on top of an agreed upon price,
- 5:32Speaker 1: and it is extremely common. I think most people will
- 5:35Speaker 1: have encountered this in restaurants and like dining out at restaurants,
- 5:40Speaker 1: you probably will have also encountered this in bars and
- 5:43Speaker 1: in like coffee shops and that sort of thing in America.
- 5:48Speaker 1: But this practice in America again in particular, has gotten
- 5:53Speaker 1: absurdly out of control. And this has people now asking
- 5:58Speaker 1: for tips at a doctor's office, a movie ticket counter,
- 6:03Speaker 1: and even at self checkouts where you're the only person
- 6:06Speaker 1: participating in that transaction.
- 6:08Speaker 2: Right, So we're going to try to answer where this
- 6:11Speaker 2: came from, why do we still do it, what we
- 6:12Speaker 2: can do about it, and really just kind of unpack
- 6:15Speaker 2: the behavior and the context of tipping as it pertains
- 6:19Speaker 2: to not only the US but globally.
- 6:21Speaker 1: Yes, although largely the US unfortunately.
- 6:25Speaker 2: Yeah, because it's almost I don't want to say almost exclusively,
- 6:29Speaker 2: but it is really a US centric problem.
- 6:32Speaker 1: We it is a thing into itself here all right away?
- 6:36Speaker 1: Sufficient to dive into our topic. Is there anything we
- 6:38Speaker 1: need to add before we get going.
- 6:40Speaker 2: Let's get into it, my friend, Let's get into it.
- 6:43Speaker 1: Okay, So here's a bunch of information that you already know,
- 6:47Speaker 1: but said in a decontextualized way to help highlight the
- 6:52Speaker 1: sort of weirdness of it. And I feel like that
- 6:54Speaker 1: strategy is kind of a part of the why we
- 6:57Speaker 1: do what we do. Brand Like, let's just say things
- 7:00Speaker 1: but without a lot of contexts, so that you can
- 7:04Speaker 1: kind of hear how weird it is that that's the
- 7:06Speaker 1: thing that we do. Yeah, just by taking the little
- 7:09Speaker 1: pieces out. So I'm gonna describe what to do that
- 7:11Speaker 1: for like a couple of a couple of exchanges here,
- 7:14Speaker 1: in a basic economic arrangement, a vendor assigns a price
- 7:18Speaker 1: to an item. A patron accepts the price or maybe
- 7:22Speaker 1: haggles with the vendor. But once both parties are in agreement,
- 7:27Speaker 1: then the patron forks over their money in exchange for
- 7:30Speaker 1: the good or service of their choice. That's the basic
- 7:34Speaker 1: economic exchange. So protextualize a little. I'm not talking about
- 7:39Speaker 1: a specific example of pain for something, but that's kind
- 7:42Speaker 1: of how the overall exchange works. And hearing it that
- 7:45Speaker 1: way again, the point is start to like that part.
- 7:49Speaker 1: I think we get we understand that part, but the
- 7:51Speaker 1: next part's the important wrinkle here.
- 7:54Speaker 2: Yes, So if you are engaging in this exchange at
- 7:56Speaker 2: a restaurant in the United States, specifically, you're also expected
- 8:00Speaker 2: to pay an additional fee on top of the price
- 8:03Speaker 2: set by the restaurant. So you've already haggled the price,
- 8:05Speaker 2: you've agreed upon the price, you pay the price, and
- 8:07Speaker 2: then you pay an additional price on top of that price.
- 8:10Speaker 2: Interestingly enough, the amount of that additional price or that
- 8:13Speaker 2: fee is decided at the discretion of the patron, who
- 8:15Speaker 2: is not legally obligated to pay anything above the set price,
- 8:19Speaker 2: so the tip could be zero. However, culturally, we will
- 8:23Speaker 2: pay anywhere from ten to twenty percent, sometimes up to
- 8:25Speaker 2: thirty percent or more than the set price, and a
- 8:28Speaker 2: vast majority of people followed these expectations, the ten to
- 8:31Speaker 2: twenty percent usually.
- 8:32Speaker 1: And so this idea of this old thing that we've
- 8:35Speaker 1: we've been describing tipping in particularly in restaurants, has been
- 8:39Speaker 1: very normalized in American culture for like generations at this point. Sure,
- 8:44Speaker 1: although most people seem to have hated it ever since
- 8:47Speaker 1: its existence. But in recent years it has become more ubiquitous.
- 8:52Speaker 1: I mean, and maybe that's not the right way to
- 8:54Speaker 1: say that, because ubiquitous kind of already means everywhere, but
- 8:58Speaker 1: increasingly valent. It's growth and spread has spawned a bunch
- 9:04Speaker 1: of terms in the lexicon to denounce how reviled it
- 9:07Speaker 1: is by the overwhelming majority of people. So people will
- 9:10Speaker 1: say things such as tipping, fatigue, guilt tipping, tip creep, tipflation,
- 9:16Speaker 1: and viral tip shaming to illustrate the mounting discontentment with
- 9:20Speaker 1: the fact that tips are now being asked for even
- 9:24Speaker 1: in a transaction where the customer performs the entire service
- 9:27Speaker 1: by themselves or by people who already famously earn very
- 9:32Speaker 1: high wages, such as doctors. Like why would you need
- 9:35Speaker 1: to tip a doctor someone who's already charging you the
- 9:38Speaker 1: equivalent of like a car for the service that they've
- 9:41Speaker 1: provided you, right, And like we know that the reason
- 9:44Speaker 1: a lot of people want to become doctors is because
- 9:46Speaker 1: they make so much money, So like tipping in a
- 9:49Speaker 1: doctor's offices seems very very silly, particularly as we get
- 9:52Speaker 1: into the reason for tipping to begin with. But that
- 9:54Speaker 1: is it is just spread to so so many places.
- 9:58Speaker 2: Yeah, I feel like it's everywhere. Like I feel like, uh,
- 10:01Speaker 2: like my tattoo removal place has a tipping like a
- 10:04Speaker 2: tipping app wo like, which is just kind of like
- 10:06Speaker 2: like I get it, like you're you you are shooting
- 10:09Speaker 2: me with lasers. I am in a lot of pain.
- 10:11Speaker 2: And like tattoo culture, tipping is expected, like that is
- 10:15Speaker 2: part of like the culture inside of that too.
- 10:16Speaker 1: That's part of it.
- 10:17Speaker 2: But like I thought it was interesting, like the opposite
- 10:19Speaker 2: is true. So I tipped you to get the tattooed.
- 10:20Speaker 2: Now I have to tip you to get rid of
- 10:21Speaker 2: the tattoo. That's like a weird I'm having a hard
- 10:24Speaker 2: time with that one. Like that one's that one's like
- 10:26Speaker 2: it's it's like spinning on my head a little bit.
- 10:28Speaker 1: No matter what, you're like paying more money than what
- 10:33Speaker 1: you kind of budgeted to pay. Yeah, and as you said,
- 10:36Speaker 1: you're doing it in both circumstances. Both to receive the
- 10:38Speaker 1: service and to unreceive the service, you get to pay
- 10:42Speaker 1: more money. Yeah, I mean, it's it's an incredible arrangement
- 10:45Speaker 1: that we've sort of that we've all sort of just
- 10:47Speaker 1: agreed that that's the way that we're going to do things. Yeah,
- 10:50Speaker 1: and we all just allow podcasts to play ads.
- 10:54Speaker 2: Oh man, we did. Why would we do that?
- 11:05Speaker 1: Well, let's really start to understand tipping by digging into
- 11:07Speaker 1: the history of tipping. And understanding where this comes from.
- 11:11Speaker 2: Yeah, so let's get the word tip out of the way.
- 11:13Speaker 2: A lot we keep saying this word and the word
- 11:16Speaker 2: tip is an acronym for to ensure promptitude. People think
- 11:21Speaker 2: that at least, and that's a myth. It's not what
- 11:23Speaker 2: the word means or where it comes from. So according
- 11:25Speaker 2: to Snopes, the word tip is used as a verb
- 11:28Speaker 2: in its way. Likely it comes from a sort of
- 11:30Speaker 2: slang in which tip meant to give or to share with,
- 11:34Speaker 2: as in to give someone an informational tip, often with
- 11:38Speaker 2: shady dealings and stuff like that, like oh, I'm giving
- 11:40Speaker 2: a not much tippair.
- 11:40Speaker 1: I know.
- 11:41Speaker 2: It was one of those things, and we still use
- 11:42Speaker 2: it in that way. So it never changed, meaning it
- 11:46Speaker 2: just added another level to this.
- 11:48Speaker 1: Yeah, there's this whole idea that that's where it comes from.
- 11:50Speaker 1: And like Snopes did a great job etymologically breaking down
- 11:54Speaker 1: why that wouldn't even make sense to have been where
- 11:57Speaker 1: that came from. But yes, if you hear that, it's
- 12:00Speaker 1: this to ensure promptitude or to ensure promptness, or to
- 12:05Speaker 1: ensure performance, to ensure prompt service, like those are all
- 12:09Speaker 1: things that people have come up with. None of them
- 12:11Speaker 1: are true. They're all a lie. You've been lied to.
- 12:14Speaker 1: That is not how it goes. All myths all myths.
- 12:17Speaker 1: It was just the word tip that was sort of
- 12:18Speaker 1: used as slang, and then it came to mean, in
- 12:21Speaker 1: addition to other things, giving someone money. Right now, according
- 12:25Speaker 1: to journalists who research these things, tipping seems to have
- 12:28Speaker 1: emerged during the Middle Ages in Europe, of course, where
- 12:31Speaker 1: bad things come from, and the sort of aristocratic and
- 12:36Speaker 1: sometimes monarchical masters, if you will quote unquote masters, they
- 12:41Speaker 1: would sometimes provide serfs and servants with an extra gratuity
- 12:46Speaker 1: for particularly exemplary service. That was one of the places
- 12:50Speaker 1: that we think is one of the first instances of
- 12:52Speaker 1: what looks like modern tipping today.
- 12:55Speaker 2: Sure now, in addition to that, tips may have been
- 12:58Speaker 2: used in European taverns to incentive quick and high quality service,
- 13:02Speaker 2: and from there. It is important to understand that Americans
- 13:04Speaker 2: and an echo of their European ancestors, love the idea
- 13:08Speaker 2: of class structures and feel it necessary to rank themselves
- 13:11Speaker 2: above others whenever possible, so a quirky feudal practice that
- 13:15Speaker 2: got embedded within and throughout so many aspects of European
- 13:18Speaker 2: culture that you hardly notice is there even when you're
- 13:21Speaker 2: looking right at it. It's easy to see how Americans
- 13:23Speaker 2: could go, oh, I see that, I like that. And
- 13:26Speaker 2: so what Americans did? They love showing off how successful
- 13:29Speaker 2: and awesome they think they are. And so a tipping
- 13:32Speaker 2: kind of hierarchy or ti tipping structure established power dynamics
- 13:36Speaker 2: very quickly and exemplified wealth. So Americans went, oh, this
- 13:40Speaker 2: is good. This really shows off my wealth, what I'm
- 13:43Speaker 2: hoarding that you'll never be able to get. So I'm
- 13:46Speaker 2: gonna go ahead and we're gonna do tipping to the extreme.
- 13:49Speaker 1: Yeah. Yeah, the whole sort of feudal system that was
- 13:53Speaker 1: largely endemic in Europe, but I mean there were other
- 13:56Speaker 1: places too, But like that is that is a place
- 13:59Speaker 1: where that sort of became just the cultural norm. It
- 14:03Speaker 1: just left this like I feel like it just embedded
- 14:06Speaker 1: this value of ranking yourself above others, and in other
- 14:11Speaker 1: parts of the world, that's just not how they ever
- 14:14Speaker 1: approached things, Like it was not as much or as
- 14:17Speaker 1: culturally common to emphasize your success above other people because
- 14:23Speaker 1: that's right, honestly, kind of a messed up way to
- 14:25Speaker 1: treat people. Yeah, it's not nice, but that became very,
- 14:28Speaker 1: very embedded, and I mean I think you see it
- 14:30Speaker 1: in a lot of things, and in the United States
- 14:33Speaker 1: and other vestiges of European and colonization sort of cultures
- 14:37Speaker 1: where in particular status is so important. Like you drive
- 14:41Speaker 1: the fancy car just because you want to be seen
- 14:44Speaker 1: driving the fancy car, not because it's it's better, not
- 14:48Speaker 1: because it offers any real advantages. It's just expensive to
- 14:51Speaker 1: show off that you can afford something that that's expensive,
- 14:53Speaker 1: or people buying, you know, paying four hundred dollars for
- 14:56Speaker 1: a haircut, or buying a five hundred dollars bottle of
- 15:00Speaker 1: wine with dinner, like there's no actual advantage to doing
- 15:03Speaker 1: it at that price point, but it allows you to
- 15:06Speaker 1: have that status, right, And that's like this weird thing
- 15:09Speaker 1: that sort of seems to have just festered its way
- 15:13Speaker 1: through culture over time, particularly in this sort of European cultures,
- 15:18Speaker 1: and definitely made when it made its way to the Americas,
- 15:23Speaker 1: and the idea of sort of masters and slaves really
- 15:25Speaker 1: did not help. And we will get to that in
- 15:27Speaker 1: a second, we certainly will. But that's why people wear
- 15:30Speaker 1: powdered wigs and they buy expensive birds, and they eat
- 15:33Speaker 1: expensive fruits, right, they do it because that's I mean,
- 15:36Speaker 1: that's what I do at least like And when I
- 15:37Speaker 1: walk around in my town, I wear a powdered wig
- 15:40Speaker 1: and a long cloak, but I make sure the cloak
- 15:42Speaker 1: has logos on it, specifically expensive logos that you know,
- 15:45Speaker 1: people know that my Balenciaga cloak and my powdered wig.
- 15:49Speaker 2: I got to have both of those things together. That
- 15:51Speaker 2: tells you that I am wealthy beyond all reason.
- 15:54Speaker 1: Yes, with an expensive exotic bird on your shoulder as well.
- 15:58Speaker 2: Of course that only speaks in French.
- 16:00Speaker 1: Yes. So there was this version of tipping that what
- 16:03Speaker 1: you might have seen in taverns in Europe, where they
- 16:05Speaker 1: would essentially try to guarantee quick and good service by
- 16:09Speaker 1: just paying a little extra on top of what they
- 16:11Speaker 1: were already paying. And when wealthy Americans encountered this practice
- 16:16Speaker 1: when they were traveling to Europe, because we're talking in
- 16:18Speaker 1: like eighteen hundreds at this point, yeah, they ate it up.
- 16:21Speaker 1: They loved this idea. They were eager to bring this
- 16:24Speaker 1: practice back home to the States and to share it
- 16:27Speaker 1: with everyone, and they felt that it created the sense
- 16:30Speaker 1: of aristocracy among the American elites because a lot of time,
- 16:34Speaker 1: particularly back then, there was still the sense of like
- 16:37Speaker 1: looking up to European aristocrats and monarchs and the elites there,
- 16:42Speaker 1: and so the American elites wanted to rival and sort
- 16:45Speaker 1: of emulate that same attitude and bring this idea of
- 16:48Speaker 1: tipping back with them where they had this power dynamic
- 16:50Speaker 1: where they could show off their wealth.
- 16:52Speaker 2: Right, And like most sensible people, most Americans, like you know,
- 16:57Speaker 2: the American population in general hate hate, hated so much
- 17:01Speaker 2: to hated tipping. Like you know, what you might see
- 17:04Speaker 2: in the news today is like you might explain that
- 17:05Speaker 2: people Americans hate tipping because it's from another country. That
- 17:09Speaker 2: might this current administration might argue that, But here I'm
- 17:12Speaker 2: just saying, like most most of us don't like tipping, right,
- 17:14Speaker 2: and they hated tipping so much that it was actually
- 17:17Speaker 2: deemed undemocratic. William R. Scott wrote in nineteen sixteen, quote
- 17:22Speaker 2: tipping and their aristocratic idea it exemplifies is what we
- 17:25Speaker 2: left Europe to escape. It is a cancer in the
- 17:28Speaker 2: breast of democracy. End quote. That's pretty powerful metaphor. I
- 17:31Speaker 2: think it's pretty clear now Americans were a hard working bunch,
- 17:37Speaker 2: most of them, not the elites, of course, and not
- 17:39Speaker 2: eager to spend more of their hard earned money that
- 17:41Speaker 2: they were already kind of busting their asses to get
- 17:44Speaker 2: on what they was already expensive dining experiences such as restaurants.
- 17:48Speaker 2: They didn't want to spend more money than they already
- 17:50Speaker 2: had to spend to have these experiences.
- 17:52Speaker 1: Yeah. But even though like there were those many elites
- 17:56Speaker 1: sort of upper class people who did like this, there
- 17:58Speaker 1: were still many of the wealthy America who didn't like
- 18:00Speaker 1: the idea of tipping. And Mary Anne Morgan, who was
- 18:04Speaker 1: daughter of the famous JP Morgan, Yes that JP Morgan,
- 18:08Speaker 1: the one you're thinking of. Yeah, she famously hated tipping.
- 18:11Speaker 1: She was also like a big time philanthropist and did
- 18:13Speaker 1: a lot of other sort of social justice causes, but
- 18:16Speaker 1: she began an anti tipping crusade. And one of the
- 18:19Speaker 1: strategies she pursued in this anti tipping was like you
- 18:24Speaker 1: can hear that and be like, oh, of course, like
- 18:26Speaker 1: the wealthy don't want to pay any more money for things,
- 18:28Speaker 1: So that's why she hated it. Not so, Actually she
- 18:31Speaker 1: kind of put her money where her mouth was. Part
- 18:33Speaker 1: of her strategy entailed opening a low cost restaurant that
- 18:38Speaker 1: not only didn't want tips and made tipping against the
- 18:41Speaker 1: rules in that restaurant. I found a whole article clip
- 18:45Speaker 1: that sort of described this idea of her restaurant where
- 18:49Speaker 1: tipping was not allowed at the restaurant, Like we're gonna
- 18:52Speaker 1: we're gonna pay her workers, We're gonna pay them fairly.
- 18:55Speaker 1: You were going to pay the price that we set
- 18:57Speaker 1: and we're not going to ask you to pay more
- 18:59Speaker 1: than that.
- 19:00Speaker 2: So glad that you brought that up, because I was
- 19:01Speaker 2: thinking about this as we were talking about it, Like
- 19:03Speaker 2: what we understand of tipping today is like it's not
- 19:06Speaker 2: that we are trying to take money from people who
- 19:09Speaker 2: are working. Like the tipping culture includes really two aspects
- 19:13Speaker 2: of it, right, like where you're paying this additional feed
- 19:15Speaker 2: to the person who's your server or who's in this space,
- 19:18Speaker 2: but they're also not making a living wage or an
- 19:21Speaker 2: hourly wage that is meeting their needs, so like they're
- 19:24Speaker 2: relying on tipping to supplement the income that the restaurant
- 19:27Speaker 2: should be paying them for regardless. Like that's I think
- 19:30Speaker 2: the important piece of this, Like we're not talking about
- 19:32Speaker 2: tipping like, oh, tipping is bad, We're talking about tipping
- 19:34Speaker 2: culture is really bad.
- 19:36Speaker 1: There you go and we're going to elaborate on that
- 19:38Speaker 1: a lot. In matter of fact, that would be we
- 19:40Speaker 1: are like kind of the most of the rest of
- 19:42Speaker 1: this discussion as we go.
- 19:44Speaker 2: Yeah, yeah, for sure, just kind of talking about you know,
- 19:47Speaker 2: miss Morgan, all at even a merely universal hatred of
- 19:51Speaker 2: tipping was not enough to combat the power of racism. Shockingly,
- 19:55Speaker 2: I'm sure you're not surprised. Racism plays a huge role
- 19:58Speaker 2: in this. It plays a pretty powerful role in this
- 20:00Speaker 2: tipping culture. Right, So for the next part to make sense,
- 20:03Speaker 2: it is important to understand that there was no such
- 20:05Speaker 2: thing as a legally mandated limit on how much or
- 20:08Speaker 2: how little someone could be paid for their labor. Okay,
- 20:11Speaker 2: not tipping, but their actual labor. People had to be paid,
- 20:16Speaker 2: and they likely wouldn't work for barely anything. So there
- 20:19Speaker 2: was sort of like a mutual contingency for both the
- 20:21Speaker 2: employer and the employee that the employee would be paid
- 20:23Speaker 2: an amount that worked for them, or else they would
- 20:26Speaker 2: find another job.
- 20:27Speaker 1: Yeah, but important to note that, like back at this
- 20:30Speaker 1: point when they're like, tipping has made its way to
- 20:32Speaker 1: the United States, but back in the eighteen hundred, it's
- 20:35Speaker 1: like there was no lass saying you had to pay
- 20:37Speaker 1: your employees, or that you had to pay them any
- 20:39Speaker 1: particular amount. Do you pay them whatever you thought was fair?
- 20:42Speaker 1: And like a business that didn't pay their employees unlikely
- 20:45Speaker 1: to last very long, probably no one worked there and
- 20:47Speaker 1: they would stop being a business. Right, So they're like
- 20:50Speaker 1: kind of was some there was contingencies on both sides
- 20:54Speaker 1: to sort of ensure that something happened, but there was
- 20:57Speaker 1: no requirement that you actually had to pay them any
- 20:59Speaker 1: reasonable amount. And again, like that may have even worked
- 21:03Speaker 1: if you didn't. Then also throw in the embedded racism
- 21:08Speaker 1: and the sort of problems with slavery. So again the
- 21:12Speaker 1: difference here is like that all made sense except for slavery, right,
- 21:18Speaker 1: And in that arrangement, of course, one person is forced
- 21:21Speaker 1: forced to work without pay and no other like worker
- 21:25Speaker 1: protections at all, and no escape from that life at all.
- 21:28Speaker 1: It was terrible, something for which we should always remember
- 21:32Speaker 1: our horrible shame and never do anything like it ever again.
- 21:36Speaker 1: See your episode on slavery, which we did record a
- 21:39Speaker 1: year or two ago that outlined the problems and the
- 21:42Speaker 1: issues with this. But nobody would want this life, like
- 21:44Speaker 1: we definitely heard people who have tried to say, oh, well,
- 21:47Speaker 1: they don't talk about the benefits of slavery. I'm like, well,
- 21:49Speaker 1: if you think it's so great, go be someone's slave
- 21:51Speaker 1: for the rest of your life and your children and
- 21:53Speaker 1: your children's children. Yeah, and see how much you like
- 21:55Speaker 1: it and if that's the thing you want for yourself,
- 21:57Speaker 1: and if you still like it, then great. But otherwise
- 22:00Speaker 1: I bet you won't you, And then you do not
- 22:02Speaker 1: have a leg to stand on as far as trying
- 22:04Speaker 1: to defend that. Yeah.
- 22:05Speaker 2: Yeah, And because we're talking about such a serious topic
- 22:07Speaker 2: like slavery, we're not going to do a funny ad break.
- 22:10Speaker 2: We're just gonna take a quick ad break because it's
- 22:12Speaker 2: kind of a rough topic. So here's an ad.
- 22:22Speaker 1: Yeah. Yeah, it does make sense that we we acknowledge
- 22:26Speaker 1: the lewdness of this with the lewdness of an ad. So, yeah,
- 22:31Speaker 1: we'll transition back to our topic at hand. We were
- 22:34Speaker 1: just talking about, essentially, like how what minimum wage which
- 22:37Speaker 1: didn't exist, what wages looked like, and then the fact
- 22:40Speaker 1: that there were people who were forced to work and
- 22:42Speaker 1: not earn any wages at all.
- 22:43Speaker 2: Yeah. So, at the end of the Civil War and
- 22:45Speaker 2: the abolition of slavery, formerly enslaved black people needed work
- 22:49Speaker 2: to earn their own money, and so they commonly took
- 22:51Speaker 2: jobs and service positions such as waiting on people in
- 22:53Speaker 2: dining or drink settings. So you saw that quite a bit,
- 22:57Speaker 2: especially like right after slavery was abolished.
- 23:00Speaker 1: Yeah, it's not like they particularly immediately after, Like they
- 23:02Speaker 1: would have had a lot of job experience aside from
- 23:05Speaker 1: service that they'd be able to really lean on. So
- 23:08Speaker 1: they needed something to be able to sort of take
- 23:10Speaker 1: care of themselves.
- 23:11Speaker 2: Now.
- 23:11Speaker 1: According to journalist Nina Martyris, tipping largely became popular in
- 23:16Speaker 1: the United States during the eighteen nineties and specifically with
- 23:20Speaker 1: one event. And I've actually heard this and I've seen
- 23:22Speaker 1: this multiple places, so I feel pretty confident that whatever
- 23:25Speaker 1: information was dug up on this, this seems to be
- 23:28Speaker 1: the catalyzing event here, although it's possible something else would
- 23:31Speaker 1: have taken its place if it wasn't this sure, but
- 23:33Speaker 1: that event was the establishment of a luxury train service
- 23:36Speaker 1: run by the Pullman Company. Was what it was called.
- 23:41Speaker 2: The Great hold On Real Quick. What a great last
- 23:44Speaker 2: name for trains. That's a good point. I did not
- 23:46Speaker 2: think about that, But you're right. Is that works fun?
- 23:49Speaker 2: That is awesome?
- 23:51Speaker 1: Yeah, that works a little too. Well, that's suspicious. How
- 23:54Speaker 1: well that works?
- 23:55Speaker 2: Yeah? Yeah, yeah, I don't like that. Did I ever
- 23:56Speaker 2: tell you so? Did I ever tell you? Like we
- 23:58Speaker 2: did our family tree all the way back, and we
- 24:00Speaker 2: learned that, like my immigrant family that came here when
- 24:02Speaker 2: they came here in the eighteen hundreds, the reason my
- 24:05Speaker 2: last name is Spiker is because they were working on
- 24:08Speaker 2: railroads and they were the ones that would set up
- 24:10Speaker 2: the railroad spikes.
- 24:11Speaker 1: I did not know that. That's fun.
- 24:13Speaker 2: Yeah, that's something we learned in our in our dives.
- 24:15Speaker 2: I mean, who knows how accurate that is, but that's
- 24:17Speaker 2: what that's what we learned as we were investigating that.
- 24:19Speaker 1: Wow, okay, maybe some history here then. Speaking of trains, Yeah,
- 24:23Speaker 1: speaking of trains, So, the founder of the Pullman Company,
- 24:26Speaker 1: George Pullman, he did hire these formally enslaved black men
- 24:30Speaker 1: to work as service importers on his train. And while
- 24:33Speaker 1: that sounds altruistic and one hundred percent was not, to
- 24:36Speaker 1: decrease his costs and maximize his profits, he installed the
- 24:39Speaker 1: system in which he paid his employers, the black employers, specifically,
- 24:43Speaker 1: next to nothing. It was as little as twelve dollars
- 24:46Speaker 1: per month, or even nothing in some cases, but offered
- 24:50Speaker 1: the opportunity to earn more money on top of what
- 24:52Speaker 1: he paid them in the form of tips from customers. Now,
- 24:56Speaker 1: even back then, you hear twelve dollars a month and
- 24:58Speaker 1: you're like, yeah, but it was the eighteen nineties, like
- 25:00Speaker 1: that was probably a lot. Like no, that was still
- 25:02Speaker 1: basically nothing like rent would have still been more than
- 25:04Speaker 1: twelve dollars a month at that point. So like they
- 25:08Speaker 1: were probably living in abject poverty at rates of pay
- 25:12Speaker 1: like that, or barely scraping by and maybe if they
- 25:15Speaker 1: had more work they'd be okay, But that is very
- 25:18Speaker 1: very little amounts of money.
- 25:19Speaker 2: Right, So, as an employer, effectively paying your employees less
- 25:23Speaker 2: and relying on them to make tips was a way
- 25:26Speaker 2: to offload the responsibility of paying your employees and just
- 25:29Speaker 2: really put it back on the customers, right, And so
- 25:32Speaker 2: they got to choose whether and to what extent they
- 25:34Speaker 2: would make up the difference. And that's really kind of
- 25:37Speaker 2: like a core thing about tipping culture. It tips are
- 25:40Speaker 2: supposed to make up the difference if the restaurant doesn't
- 25:43Speaker 2: want to pay their employees. That's exactly it, And that's
- 25:45Speaker 2: kind of like the crux of it, right, so now
- 25:47Speaker 2: he could get away with not paying a fair salary
- 25:50Speaker 2: in increasing profits for himself and allow racist Southerners to
- 25:53Speaker 2: treat workers as they felt they deserve to be treated poorly.
- 25:58Speaker 2: And as it was a train service, it traveled to
- 25:59Speaker 2: a lot of different places and spread the cancerous idea
- 26:02Speaker 2: of tipping with it. Restaurant owners in particular quickly glombed
- 26:06Speaker 2: onto this practice and started using it within their service,
- 26:09Speaker 2: specifically with their serving staff.
- 26:11Speaker 1: Yeah, the start of this is like, how can I
- 26:14Speaker 1: not pay black people who used to be slaves and
- 26:17Speaker 1: make them work anyway? And that's kind of the system
- 26:20Speaker 1: he came up with. And then restaurant owners, who are
- 26:24Speaker 1: usually operating off of pretty thin margins to begin with,
- 26:27Speaker 1: were like, well, this is a way I can actually
- 26:29Speaker 1: increase how much my business makes is by not paying
- 26:32Speaker 1: my staff, right, and instead the customers will pay my
- 26:34Speaker 1: staff and we'll just sort of shift the obligations over
- 26:38Speaker 1: here a little bit. And it kind of worked. Despite
- 26:42Speaker 1: the growing popularity of tipping among businesses such as bars, restaurant, trains,
- 26:47Speaker 1: and places with serving staff, the public at large still
- 26:50Speaker 1: did hate pain for things twice and so finally, the
- 26:54Speaker 1: various governments of the United States. These are state governments.
- 26:58Speaker 1: They finally stepped into do something about this, and around
- 27:02Speaker 1: the beginning of the nineteen hundreds, forty eight of the
- 27:05Speaker 1: fifty US states passed laws outright banning tipping. And to
- 27:10Speaker 1: be fair, at that point, I think they were only
- 27:11Speaker 1: forty nine states, but.
- 27:13Speaker 2: Yeah, there were, there weren't very many. There weren't all
- 27:15Speaker 2: fifty yeend.
- 27:15Speaker 1: Yeah, almost all of them tried to ban an outlaw
- 27:18Speaker 1: tipping at the turn of the nineteen hundreds.
- 27:21Speaker 2: Yeah. But the problem was that none of these laws
- 27:23Speaker 2: were very very difficult to or nearly impossible to enforce,
- 27:27Speaker 2: and the governments of different states repealed their anti tipping laws.
- 27:31Speaker 2: So great lip service. Great that you passed it, and
- 27:34Speaker 2: they went, oh, how do we do this? Oh we
- 27:37Speaker 2: can't okay, never mind.
- 27:39Speaker 1: Yeah that was basically it is like there was there's
- 27:42Speaker 1: no mechanism by which they can enforce this. I mean again,
- 27:45Speaker 1: for one thing, there was no minimum wage yet, and
- 27:48Speaker 1: for another, like nothing is being recorded digitally, so they
- 27:50Speaker 1: could just write down whatever and then report that if
- 27:53Speaker 1: they're going to report it at all, right, And another
- 27:55Speaker 1: thing is they couldn't necessarily control customer behaviors, so like
- 27:59Speaker 1: they just kind of can continued to foster this culture
- 28:01Speaker 1: to the best of their ability, so they could continue
- 28:03Speaker 1: to offload their costs of paying people and put it
- 28:07Speaker 1: on to customers instead. Right, it was very, very difficult
- 28:09Speaker 1: for the government to do anything about it. So, okay,
- 28:11Speaker 1: so restaurants, bars, and other service industries are using the
- 28:14Speaker 1: practice of tipping that started with racist policies designed to
- 28:17Speaker 1: avoid paying former slaves. And anyway, they're using tipping to
- 28:21Speaker 1: have an excuse to not pay their employees and instead
- 28:23Speaker 1: have the customers pay their employees while keeping their prices
- 28:27Speaker 1: low to create a sense that people are paying lower
- 28:30Speaker 1: prices than what they actually end up paying, because of
- 28:32Speaker 1: course they're then paying that amount on top of whatever
- 28:37Speaker 1: the service or good that they paid for.
- 28:39Speaker 2: It was, right, exactly. So it's smoking mirrors, baby, that's
- 28:42Speaker 2: all it is.
- 28:43Speaker 1: Yeah, but we had to set up that for the
- 28:45Speaker 1: next part.
- 28:46Speaker 2: Yes, yes, so you might have heard us say there
- 28:49Speaker 2: was no minimum wage, and let's talk about that. This
- 28:51Speaker 2: issue could not have possibly persisted with the adoption of
- 28:55Speaker 2: a federal minimum wage, especially when that became a thing. Actually,
- 28:59Speaker 2: that's very wrong if for some reason it did. And
- 29:01Speaker 2: here's why. When the fair Labor Standards Act established a
- 29:04Speaker 2: federal minimum wage. They specifically carved out an exemption for
- 29:08Speaker 2: workers who had tips as part of their wages, which
- 29:10Speaker 2: meant that everyone who earned tips could be paid less
- 29:13Speaker 2: than the federal minimum wage because they could potentially earn
- 29:17Speaker 2: their money from tips. As somebody who worked in a
- 29:20Speaker 2: restaurant at one point in time, my hourly rage was
- 29:23Speaker 2: two dollars and fifteen cents because I was making that
- 29:26Speaker 2: when I was getting tipped, and if I did not
- 29:28Speaker 2: get any tips that night, I only made two dollars
- 29:30Speaker 2: and fifty cents per hour during my shift.
- 29:33Speaker 1: Yes, that's exactly it. That is how that works, and
- 29:37Speaker 1: that was legal well and that still is like that
- 29:40Speaker 1: is still that is those are still the laws right now.
- 29:43Speaker 2: So, yeah, I didn't work in the eighteen hundreds. I
- 29:46Speaker 2: worred was this was this was two thousand and one, you.
- 29:49Speaker 1: Know, yeah, yeah, yeah, So there was a federal minimum wage.
- 29:55Speaker 1: It exempted employees to essentially less than that. Now, there
- 29:59Speaker 1: was this a s Preme Court ruling in nineteen forty
- 30:01Speaker 1: two that tipped employees were not obligated to share their
- 30:04Speaker 1: tips with other restaurants staff. And while we might hear
- 30:07Speaker 1: that and be like, oh, what jerks that they ruin this? Actually,
- 30:10Speaker 1: I think what they did here was maybe a little
- 30:12Speaker 1: more clever than it sounds. I think what the reason
- 30:15Speaker 1: for this ruling, or at least an outcome of this ruling,
- 30:18Speaker 1: is that if only the service staff, the people who
- 30:22Speaker 1: were out on the floor bringing plates and whatnots people
- 30:25Speaker 1: were the ones who were working on tips, that would
- 30:28Speaker 1: have made it so that the staff who were not
- 30:31Speaker 1: the front of the house serving staff, like the cooks
- 30:33Speaker 1: and the people behind like they would have had to
- 30:36Speaker 1: have been paid at least the federal minimum wage because
- 30:40Speaker 1: and not been exempt from that like the serving staff were,
- 30:43Speaker 1: because they would not then be considered a tipped employee.
- 30:47Speaker 1: So I think that was actually what they were trying
- 30:48Speaker 1: to do, is they were actually trying to reduce how
- 30:51Speaker 1: much of the burden was being offloaded in this tipping
- 30:54Speaker 1: culture by allowing the workers who earned the tips to
- 30:57Speaker 1: keep all those tips to themselves. I think I think
- 30:59Speaker 1: that was the plan. I couldn't find anything to corroborate that,
- 31:02Speaker 1: but that would have been an implication of that, because
- 31:04Speaker 1: to be deemed exempt from minimum wage, you had to
- 31:09Speaker 1: be a tipped wage earner. Essentially So anyway, what happened
- 31:13Speaker 1: then is Congress created a tip credit, and this allowed
- 31:19Speaker 1: employers to pay employees a sub minimum wage that was
- 31:23Speaker 1: specifically forty to sixty percent of minimum wage, again with
- 31:28Speaker 1: the understanding that the rest would be made up from
- 31:31Speaker 1: tips that that would fill the gap. Which is kind
- 31:33Speaker 1: of funny thinking that, like, if they're paying let's say generously,
- 31:36Speaker 1: they're being paid sixty percent of minimum wage, right, that
- 31:39Speaker 1: means that to get the amount they would have to
- 31:41Speaker 1: be tipped to make up that gap is forty percent,
- 31:44Speaker 1: and no one's tipping forty percent, right, right, So just
- 31:47Speaker 1: the thing to consider anyway, that meant that minimum wage
- 31:51Speaker 1: for tipped employees because this was set out of percent,
- 31:54Speaker 1: like Congress said it, So it's forty to sixty percent
- 31:56Speaker 1: of minimum wage. If that system is in place, then
- 32:00Speaker 1: as minimum wage increased, tipped employees would also continue to
- 32:04Speaker 1: have their wage, their minimum wage increased as it went
- 32:08Speaker 1: like that would have been how that played out. So
- 32:10Speaker 1: that was in I think the nineteen sixties or something
- 32:13Speaker 1: like that that they made that they passed that law.
- 32:15Speaker 2: Right now, in nineteen ninety six, Republicans controlled Congress, and
- 32:20Speaker 2: so Congress froze the wage of tipped workers at two
- 32:23Speaker 2: dollars and thirteen cents per hour, which is about four
- 32:26Speaker 2: dollars per hour today. This dollar amount, two dollars and
- 32:29Speaker 2: thirteen cents is still current minimum wage for tipped workers
- 32:34Speaker 2: in nineteen states in the US, almost thirty years later.
- 32:39Speaker 2: I remember when this happened because my mom has spent
- 32:42Speaker 2: her entire life working in restaurants and she was a
- 32:43Speaker 2: server at the time, and I remember when this happened
- 32:45Speaker 2: and everybody was fuming, fuming about it, yeah, because they
- 32:50Speaker 2: were like, this is it's unfair. We're already scraping the
- 32:52Speaker 2: barrel like to get paid, Like we're already working, busting
- 32:56Speaker 2: our asses to get paid. So thirty years later, it's
- 32:58Speaker 2: still two dollars and thirteen cents per hour today.
- 33:02Speaker 1: Like today, people in nineteen states in the United States
- 33:06Speaker 1: could be earning two dollars and thirteen cents per hour.
- 33:10Speaker 1: Two dollars and thirteen cents. That is a crazy low number.
- 33:14Speaker 1: So I just want to throw a bunch of these
- 33:17Speaker 1: states under the bus really quick. These are the nineteen
- 33:19Speaker 1: states where this is allowed. Alabama, Arkansas, Delaware, Georgia, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Nebraska,
- 33:27Speaker 1: North Carolina, South Carolina, Oklahoma, Tennessee, Texas, Utah, Virginia, and Wyoming.
- 33:33Speaker 1: Those are the nineteen states that still have two dollars
- 33:35Speaker 1: and thirteen cents as the exempted sort of minimum wage
- 33:39Speaker 1: for those workers from that nineteen ninety six law. So
- 33:42Speaker 1: what do those states have in common, you decide?
- 33:45Speaker 2: And I'm thinking a specific.
- 33:47Speaker 1: Queue me too for most of them. There are some
- 33:52Speaker 1: states that have actually completely removed this exemption. That means
- 33:57Speaker 1: there is no such thing as a sub minimum wage
- 33:59Speaker 1: in those states. That means that in those states, if
- 34:02Speaker 1: you're a worker who works on minimum wage, you get
- 34:06Speaker 1: paid at least the federal minimum wage or the state
- 34:09Speaker 1: minimum wage. And actually for most of those states, they
- 34:12Speaker 1: do have a state minimum wage that exceeds the federal
- 34:14Speaker 1: minimum wage. Right, and so the states that have completely
- 34:17Speaker 1: removed this are Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington.
- 34:25Speaker 1: Those are completely gone as far as the MINIMUMI. That
- 34:27Speaker 1: means that if you go to a restaurant in any
- 34:29Speaker 1: one of those places, the waiters there are being paid
- 34:32Speaker 1: at least the state minimum wage, which might also be
- 34:36Speaker 1: the federal minimum wage. But if you go to any
- 34:38Speaker 1: of those other states, any other state besides those, they're
- 34:41Speaker 1: likely being paid a sub minimum wage, and possibly they're
- 34:44Speaker 1: being paid only two dollars and thirteen cents an hour
- 34:47Speaker 1: if they're in any of the states that I listed before.
- 34:49Speaker 1: So just wanted to get that out there. I wanted
- 34:50Speaker 1: do you all to know if you're in those states
- 34:53Speaker 1: or you visit those states, that's kind of what you
- 34:55Speaker 1: can expect as far as what's being paid for those employees.
- 34:59Speaker 1: We only get paid for like patron supporters. And then
- 35:01Speaker 1: sometimes adds oh, all right, so we just threw a
- 35:11Speaker 1: whole bunch of people under the bus, and I guess
- 35:13Speaker 1: sort of complimented some states who have moved away from
- 35:15Speaker 1: the system. So let's continue on from here. Have we
- 35:18Speaker 1: solved the issue of tipping by removing the subminimum wage?
- 35:22Speaker 2: Yeah, I mean, based on what you said, it sounds
- 35:24Speaker 2: like tipping culture is diminishing, but it's not. It's actually growing.
- 35:28Speaker 2: It's getting worse. So it's growing in a way that
- 35:31Speaker 2: is like a little bit icky. We'll say that, scientifically speaking,
- 35:36Speaker 2: it's icky. Yeh. So, as we mentioned at the top,
- 35:39Speaker 2: tipping is growing so common you might be asked to
- 35:41Speaker 2: tip a business for a job that you performed yourself,
- 35:44Speaker 2: or to tip people who famously make a lot of
- 35:46Speaker 2: money from their jobs, and like.
- 35:48Speaker 1: Various other places, there are places you've just never been
- 35:50Speaker 1: asked to tip before that all of a sudden you're
- 35:52Speaker 1: being asked to tip. And again, like tipping people when
- 35:56Speaker 1: you do takeout. That kind of does make sense in
- 35:58Speaker 1: a restaurant industry, particularly in the States. But who knows.
- 36:02Speaker 1: But like then tipping again, like a self serve kiosk,
- 36:06Speaker 1: you might be asked to tip. I'm like, who is
- 36:08Speaker 1: this for at this point? Really, it's definitely gotten. Just
- 36:12Speaker 1: it's so common and so and people hate it understandably.
- 36:16Speaker 1: Why does this continue to spread? Okay, so this is
- 36:20Speaker 1: kind of why this happens sort of thing. This is
- 36:22Speaker 1: that that section of this discussion. For one thing, people
- 36:24Speaker 1: who have the opportunity to earn extra money, they're not
- 36:27Speaker 1: going to turn that down in a lot of these cases, right,
- 36:30Speaker 1: That is right. The behavior gets reinforced by successfully augmenting
- 36:34Speaker 1: people's income at least a little. And further, the response
- 36:38Speaker 1: effort to like set up a process for tipping is
- 36:41Speaker 1: extremely low. All you have to do is make it
- 36:44Speaker 1: available and some people will do it and you just
- 36:47Speaker 1: keep the cash. So it's just like by the way
- 36:49Speaker 1: we accept tips, and then every once in a while
- 36:51Speaker 1: you'll get tipped, even if it's not a place that
- 36:53Speaker 1: commonly receives tips. So like, if you're already going to
- 36:59Speaker 1: get a little extra money for it, and it costs
- 37:01Speaker 1: you almost like basically nothing to do and really no effort, like,
- 37:05Speaker 1: it's easy to understand why people would ask for it
- 37:08Speaker 1: in settings where it doesn't really make as much sense
- 37:10Speaker 1: for them to do. So. Another thing I think to
- 37:13Speaker 1: consider is that, like effort and reward are not the
- 37:17Speaker 1: only factors in determining the choices that people will make
- 37:19Speaker 1: about things. There's also like is it acceptable is a
- 37:23Speaker 1: thing for which you will be socially stigmatized? There's kind
- 37:26Speaker 1: of no social stigma associated for asking for tips, at
- 37:28Speaker 1: least not anymore, right, And there's even less stigma the
- 37:31Speaker 1: more that this happens, and the more common it becomes,
- 37:34Speaker 1: that people feel comfortable asking for tips, So people are
- 37:37Speaker 1: really incentivized to participate in a system that costs them nothing,
- 37:42Speaker 1: has no social disapproval, and may earn them extra money.
- 37:46Speaker 1: Who wouldn't at least try to do it? With a
- 37:49Speaker 1: system like that. Right, So sure we're facing three major
- 37:54Speaker 1: goliath contextual features that make it the people are definitely
- 37:58Speaker 1: going to ask for tips and in places where again
- 38:01Speaker 1: it just is not really a place where that would
- 38:04Speaker 1: the reason for tipping to supplement income that doesn't exist
- 38:07Speaker 1: in that space.
- 38:08Speaker 2: Yeah, yeah, absolutely. Now another reason, of course is guilt
- 38:12Speaker 2: or social convention. So again, when we talk about behavior,
- 38:16Speaker 2: behavior goes two ways. It either goes towards something or
- 38:18Speaker 2: goes away from something. It's generally speaking.
- 38:20Speaker 1: Right, generally speak.
- 38:21Speaker 2: Generally speaking, it's obviously more complicated that, but to simplify
- 38:24Speaker 2: it for this context, I'm either trying to get to
- 38:26Speaker 2: this thing or get away from something. And sometimes we
- 38:29Speaker 2: tip because of guilt or social conventions. I want to
- 38:31Speaker 2: avoid being misjudged. Right. The act of tipping is not
- 38:34Speaker 2: just customary, it's a message. A tip indicates appreciation, kindness, respect.
- 38:40Speaker 2: A tip is often followed by a thank you or
- 38:42Speaker 2: some other reciprocal appreciation. Sometimes we feel guilty, so we're like,
- 38:45Speaker 2: I don't want to feel guilt, so I'm gonna tip
- 38:47Speaker 2: you because I feel like I'm supposed to. Right, we
- 38:48Speaker 2: have those, Yeah, but let's talk about the behavior tipping. Right,
- 38:51Speaker 2: If we don't tip, we feel like we're sending the
- 38:53Speaker 2: message that we don't appreciate, we don't respect, or we
- 38:55Speaker 2: don't care about someone specifically, like their performance. Right, we
- 39:00Speaker 2: feel like we're we don't respect your performance, we don't
- 39:01Speaker 2: appreciate all that. Yeah, and we might be wondering, is
- 39:04Speaker 2: this person getting over by their employer. I might be
- 39:08Speaker 2: really helping them out by sparing an extra dollar or two, which,
- 39:11Speaker 2: you know, if I'm out of the restaurant, I feel
- 39:12Speaker 2: like I can sometimes, right, and some of us might
- 39:15Speaker 2: just hit the tip button because we aren't really paying attention.
- 39:18Speaker 2: It happens like that too. So there's also just kind
- 39:20Speaker 2: of like the rote response of oh, yeah, here's that button, right,
- 39:22Speaker 2: here's the number, and so we could do it. Could
- 39:24Speaker 2: be for any of those reasons.
- 39:25Speaker 1: You know. I've had that experience where I see the
- 39:27Speaker 1: option for tip, I'm like, if you have to ask,
- 39:30Speaker 1: that makes me think that like something's going on here
- 39:32Speaker 1: where you need this, you know.
- 39:34Speaker 2: Yeah.
- 39:35Speaker 1: And one of the problems is like we feel like
- 39:37Speaker 1: we're being generous, and we are and that people who
- 39:39Speaker 1: get those tips definitely appreciate it. But the more we
- 39:42Speaker 1: do it, the more, we create a condition under which
- 39:46Speaker 1: those people can become tipped employees. Yes, like they could
- 39:50Speaker 1: actually have their wages shifted from earning whatever they earn
- 39:54Speaker 1: to earning the sort of tipped employee status and earn
- 39:58Speaker 1: sub minimum wage status. Yes. And we also just create
- 40:02Speaker 1: a culture of prevalence where that becomes part of all
- 40:04Speaker 1: of our financial transactions. And it's not like we're gonna
- 40:08Speaker 1: be paying less for those services. We're going to be
- 40:10Speaker 1: paying the exact same amount and then a tip. So
- 40:14Speaker 1: it's like this is just a lose lose situation for
- 40:17Speaker 1: everyone here. So anyway a thing to consider that does
- 40:21Speaker 1: lead us to, though, I think, what can we do
- 40:23Speaker 1: about this, this practice that has just gotten so unbelievably
- 40:27Speaker 1: out of hand. A lot of people have already taken
- 40:29Speaker 1: approach that they just won't tip anymore, And unfortunately, I
- 40:33Speaker 1: just that really can't work. Tipping is too fully embedded
- 40:37Speaker 1: for that to be a workable solution. Too many people
- 40:39Speaker 1: would suffer too much for us to just go like,
- 40:42Speaker 1: all right, no more tipping, We're done. Certainly we don't
- 40:45Speaker 1: need to tip every single time that we're asked for tipping,
- 40:48Speaker 1: particularly things where like that doesn't make sense. We're not
- 40:51Speaker 1: supplementing income. Maybe nobody even engaged with us and we
- 40:55Speaker 1: did it ourselves, or like we're we're paying people who
- 40:58Speaker 1: already make plenty of money. We've described before, Like in
- 41:01Speaker 1: those cases, it doesn't necessarily make sense, but there are
- 41:04Speaker 1: people who still subsist on sub minimum wage who definitely
- 41:08Speaker 1: desperately depend on that money. Right now in most states,
- 41:12Speaker 1: like so many states, there's only that handful that have
- 41:15Speaker 1: eliminated the sub minimum wage, even the ones that aren't
- 41:17Speaker 1: operating off the two dollars and thirteen cents an hour,
- 41:20Speaker 1: some of them are literally two cents more than that.
- 41:23Speaker 1: I did see two dollars and fifteen cents in the list,
- 41:26Speaker 1: and I just didn't include them because they were more
- 41:28Speaker 1: than the two thirteen, but only barely, you know, And
- 41:32Speaker 1: there are plenty of them that were less than five
- 41:34Speaker 1: dollars an hour. That was super common to see. So like,
- 41:37Speaker 1: there are people who are making exceptionally little money in
- 41:40Speaker 1: those states. So most of them do have a situation
- 41:43Speaker 1: like that. So until we can fix their earnings, simply
- 41:47Speaker 1: stopping tipping would cripple them financially like that. That just
- 41:50Speaker 1: can't be the solution right now. That would absolutely destroy
- 41:54Speaker 1: the financial viability of people who currently have a status
- 41:57Speaker 1: as a tipped worker right now, even situations where people
- 42:01Speaker 1: do earn minimum wage.
- 42:02Speaker 2: The federal minimum wage right now is currently at seven
- 42:05Speaker 2: to twenty five okay, seven to twenty five per hour,
- 42:08Speaker 2: which hasn't increased since two thousand and nine. A worker
- 42:11Speaker 2: earning minimum wage who works forty hours per week will
- 42:13Speaker 2: earn fifteen thousand and sixty dollars per year, which is
- 42:16Speaker 2: pretty much at the poverty line and not a livable
- 42:19Speaker 2: wage at all. Although to be fair, many states have
- 42:22Speaker 2: their own minimum wage it can exceed the federal government. Washington, DC,
- 42:25Speaker 2: Washington State, California, parts of New York are the highest.
- 42:29Speaker 2: But that is to say, again, if we just stop tipping,
- 42:31Speaker 2: even those earning the federal minimum wage or state minimum
- 42:35Speaker 2: wage are likely to be barely scraping by or actually
- 42:38Speaker 2: live in poverty.
- 42:39Speaker 1: Yeah. So again, like the solution here, it can't be
- 42:44Speaker 1: that we stop tipping, and it even like getting rid
- 42:47Speaker 1: of the sub minimum wage would definitely help, it would
- 42:51Speaker 1: definitely not get rid of that problem, as we've already seen,
- 42:53Speaker 1: because there are states where they've gotten rid of the
- 42:55Speaker 1: sub minimum wage and people still do tip. And part
- 42:59Speaker 1: of that is because, like even out minimum wage, those
- 43:01Speaker 1: workers will probably still need tips because that's just not
- 43:04Speaker 1: enough to just get by on just that amount of
- 43:07Speaker 1: money for a lot of those people. Yeah, Now, some
- 43:09Speaker 1: businesses have tried to sort of replicate Maryanne Morgan's vision.
- 43:13Speaker 1: If you remember at the beginning we talked about her
- 43:15Speaker 1: restaurant where they wouldn't allow tips. And so I've been
- 43:18Speaker 1: to these restaurants that they discouraged tipping, and they will
- 43:21Speaker 1: even expressly advertise that they pay their staff a living
- 43:23Speaker 1: wage so that a tip is not necessary or expected,
- 43:27Speaker 1: and they'll say, like, listen, we know that a lot
- 43:29Speaker 1: of people want to do this. If you want to,
- 43:31Speaker 1: you can, but we're telling you it is not expected.
- 43:34Speaker 1: It is okay if you don't tip, because we are
- 43:36Speaker 1: paying our employees enough. I've been to at least two
- 43:39Speaker 1: that I can think of on the top of my head.
- 43:41Speaker 1: And to answer the question you probably have, yes, I
- 43:45Speaker 1: paid more for my food. Did I pay more than
- 43:47Speaker 1: I would have paid if I had paid you know,
- 43:49Speaker 1: whatever it was, and then added the tip on top
- 43:52Speaker 1: of that. Probably not right. It probably was what I
- 43:55Speaker 1: end up usually paying what the tip included, And I
- 43:58Speaker 1: felt really good about that being a place where I
- 44:01Speaker 1: can go and just pay the agreed upon price and
- 44:03Speaker 1: know that the people who work there are not then
- 44:06Speaker 1: suffering financially because of my decision to do that. Right.
- 44:09Speaker 2: Absolutely, have you been to a place like that, Shane?
- 44:11Speaker 2: I have, and it's it's pretty interesting, Like, but Florida,
- 44:16Speaker 2: Florida doesn't really Florida's not very forward thinking about things.
- 44:21Speaker 2: You don't say, ah, yeah, weird, right, So most of
- 44:23Speaker 2: the places, like unless it's like a new restaurant and
- 44:28Speaker 2: maybe like a city like a Orlando, you're not gonna
- 44:30Speaker 2: see that. I mean, the town I live in is
- 44:32Speaker 2: not very like ahead of the time, so like you're
- 44:34Speaker 2: gonna see folks that just like you know, at restaurants,
- 44:37Speaker 2: at least you're they're making minimum wage. I mean, my
- 44:40Speaker 2: mom works at a restaurant where they're still doing that,
- 44:42Speaker 2: so like they're making less of minimum wage should say're
- 44:45Speaker 2: making that sub minimum wage. So yeah, I've been to
- 44:47Speaker 2: place like that, but it's it's few and far between
- 44:49Speaker 2: here in the South. At least.
- 44:50Speaker 1: I was surprised that Florida was not on the list
- 44:53Speaker 1: of places where they had they still had that two
- 44:56Speaker 1: dollars and thirteen cents an hour. I forgot what it was,
- 44:58Speaker 1: but it was above that at least.
- 45:01Speaker 2: It's like four or five or something like that. It's
- 45:02Speaker 2: like it's still really low.
- 45:04Speaker 1: Yeah, I think it was like in that sort of
- 45:06Speaker 1: if you take the averages of the sub minimum wage,
- 45:08Speaker 1: it was like kind of right around with the average
- 45:10Speaker 1: sub minimum wage was as quite closer to five dollars
- 45:12Speaker 1: an hour. Yeah, yeah, which is so barely anything.
- 45:15Speaker 2: Yeah, it's nothing.
- 45:17Speaker 1: And you know, we didn't talk about this, but the oh,
- 45:19Speaker 1: actually no we did, because the whole point of the
- 45:20Speaker 1: minimum minimum wage is like if you oh no, we didn't.
- 45:23Speaker 1: It was like if you make thirty percent of your
- 45:29Speaker 1: wages for the month come from tips, then you count
- 45:32Speaker 1: as a tipped employee. It's something like that, Like that's
- 45:34Speaker 1: how they define the criteria for calling someone a tipped employee.
- 45:38Speaker 2: Yeah, and there's some like weird laws about like how
- 45:41Speaker 2: it gets counted for tax purposes and stuff like that,
- 45:44Speaker 2: and how you claim tips and like it's such a complex,
- 45:48Speaker 2: an unnecessarily complex system.
- 45:50Speaker 1: Yeah, unnecessary, like ads are unnecessary.
- 45:53Speaker 2: Oh exactly, exactly, all right, we're back.
- 46:02Speaker 1: There are some other strategies that have been proposed to
- 46:05Speaker 1: try and get rid of tipping. So here they are.
- 46:08Speaker 2: Okay. So some places have proposed changes such as profit
- 46:12Speaker 2: sharing among employees, charging a service fee at places with servers,
- 46:15Speaker 2: which I've seen that, but I've I've seen them charging
- 46:18Speaker 2: service fees, but the service fees are going back to
- 46:20Speaker 2: the restaurant because they're like, this is a living fee
- 46:22Speaker 2: wage and they're not like it's like weird, Like I've
- 46:24Speaker 2: seen that happen a couple of times. Huh, But charging
- 46:26Speaker 2: a service fee to make up for the tipping will
- 46:29Speaker 2: be what they should do, right, Increasing the cost of
- 46:32Speaker 2: products sold and paying staff at a higher base salary,
- 46:35Speaker 2: many or all of these could be viable options to
- 46:37Speaker 2: move away from tipping.
- 46:39Speaker 1: Yeah, but we the commonality of tipping in our culture
- 46:44Speaker 1: makes it so that even with those policy changes, it
- 46:47Speaker 1: would be a long, slow, gradual change to get rid
- 46:50Speaker 1: of it. And it's right now it's only accelerating, like
- 46:52Speaker 1: we're only seeing it more and more. Right, So, Okay,
- 46:55Speaker 1: this next one we've got to be a little bit
- 46:57Speaker 1: careful on. But it's it's really important to understand and
- 46:59Speaker 1: break down because people are going to hear this and
- 47:01Speaker 1: immediately be a little bit up in arms. There's a
- 47:04Speaker 1: large proposal to eliminate taxes on tips. This was both
- 47:10Speaker 1: parties advertised and campaigned on this in the last election cycle.
- 47:13Speaker 1: Sounds great. Workers who rely on tips definitely gonna love
- 47:16Speaker 1: this sort of thing, but we again, this is a
- 47:20Speaker 1: sneaky thing that we need to actually pay attention to
- 47:22Speaker 1: what this incentivizes. Many scholars think and predict that this
- 47:26Speaker 1: would actually make tipping culture significantly worse, and the reason
- 47:31Speaker 1: is that tipping is already a way to offload compensation
- 47:34Speaker 1: responsibilities from an employer to a consumer instead. If they
- 47:39Speaker 1: can get away with earning income without having to pay
- 47:41Speaker 1: taxes on it, more people will try and exploit that
- 47:45Speaker 1: system of earning income so that they don't have to
- 47:48Speaker 1: pay taxes on their income. Like they will push for
- 47:50Speaker 1: more wages earned via tips and actually accept a lower
- 47:55Speaker 1: hourly rate because they will be taxed at a lower
- 47:58Speaker 1: rate for the money that they earn from tips alone.
- 48:01Speaker 1: This will powerfully incentivize systems at all levels, from the
- 48:06Speaker 1: lowest worker to the highest CEO to push for tips
- 48:09Speaker 1: harder than they ever have before. So unfortunately, eliminating tax
- 48:14Speaker 1: on tips, while that sounds very appealing and I don't
- 48:17Speaker 1: want to take away the gain that would be rot
- 48:20Speaker 1: from employees who do depend on tips. This would actually
- 48:23Speaker 1: make the tipping problems substantially worse in our culture, Like
- 48:27Speaker 1: it might actually double in how often we are expected
- 48:32Speaker 1: to do this, or more like, it could show up
- 48:34Speaker 1: in every financial transaction you make. If they could shift
- 48:38Speaker 1: their income to a non taxed income, they're gonna do that,
- 48:42Speaker 1: and they're gonna do it hard. So like yeah, yeah,
- 48:46Speaker 1: So what I think would be a much better system
- 48:50Speaker 1: is to just pay your employees better, Like, rather than
- 48:54Speaker 1: incentivize going whole hog on tipping, let's just pay our
- 48:58Speaker 1: employees better. I think the like that will even if
- 49:02Speaker 1: it doesn't necessarily remove tips, it can at least curb
- 49:05Speaker 1: the acceleration of tips.
- 49:07Speaker 2: Yeah. One, I mean, basic behavior would tell me like, oh,
- 49:11Speaker 2: I'm gonna engage in the behavior that's going to produce
- 49:13Speaker 2: the most reward without any sort of like cost or
- 49:17Speaker 2: without any sort of punishment. Right, so, like, oh, a
- 49:20Speaker 2: source of income without any penalties on it, You better
- 49:23Speaker 2: believe I'm gonna go for that. Like why wouldn't I
- 49:25Speaker 2: go for that?
- 49:26Speaker 1: Yeah, exactly, And so then then tipping goes everywhere, every
- 49:30Speaker 1: absolutely everywhere.
- 49:31Speaker 2: Everywhere, everywhere. With that being said, it would definitely be
- 49:34Speaker 2: helpful for any of us if we're in a situation
- 49:37Speaker 2: where there's transactions in which a tip is not really
- 49:39Speaker 2: needed or necessary to stop asking for tips. Those folks
- 49:43Speaker 2: should stop asking for tips in those situations, and we
- 49:46Speaker 2: should also probably not tip in those situations. Like when
- 49:50Speaker 2: I go again, going back to my tattoo removal, I
- 49:52Speaker 2: should not be tipping. I should not be tipping this place.
- 49:55Speaker 2: Nobody there is on a sub minimum wage scale, like
- 49:57Speaker 2: nobody's nobody's there working on they're all actually pretty highly paid.
- 50:01Speaker 2: So and because most of the time insurance doesn't cover it,
- 50:05Speaker 2: it's usually like direct pay, it's usually like a private
- 50:07Speaker 2: pay circumstance. So it's a situation where like, we really
- 50:11Speaker 2: shouldn't be tipping, so we should please stop. But I
- 50:13Speaker 2: do think it's important to remember that there is a
- 50:16Speaker 2: cultural kind of expectation to tip in the United States
- 50:20Speaker 2: at least, and it's very difficult to overcome that urge
- 50:23Speaker 2: to tip, even when you're told not to, even when
- 50:26Speaker 2: situations say like, hey, you don't need to tip here,
- 50:28Speaker 2: you still feel it, especially for those of us who
- 50:30Speaker 2: have worked in service industries. And like feel guilty that
- 50:34Speaker 2: somebody is working and serving us and we want to
- 50:36Speaker 2: make sure they're tipped right. And it is unlikely to
- 50:38Speaker 2: become a popular trend anytime soon. And even if we
- 50:41Speaker 2: were eager to philosophically embrace the idea of not tipping,
- 50:45Speaker 2: we might struggle with it emotionally due to the difference
- 50:48Speaker 2: in costs that we would immediately be confronted with. So
- 50:51Speaker 2: Douglas Miller, a lecturer at the Hotel School of the
- 50:54Speaker 2: South Carolina Johnson College of Business at Cornell University, Good, lord,
- 50:58Speaker 2: that is a long.
- 51:00Speaker 1: That's the longest title I've ever seen.
- 51:03Speaker 2: That's the longest school.
- 51:04Speaker 1: Yeah, that was the reference that I saw. So I
- 51:06Speaker 1: was like, all right, I'm putting it in there.
- 51:07Speaker 2: Yeah, yeah, here we are, okay. So Douglas Miller pointed
- 51:10Speaker 2: out that quote as a culture, since we underpay for
- 51:13Speaker 2: the quality of the food that we eat in the
- 51:16Speaker 2: United States, then that presents a dilemma where the customer
- 51:19Speaker 2: doesn't want to pay for the food end quote. Yeah,
- 51:21Speaker 2: And in such of the argument he's making is like,
- 51:23Speaker 2: we get exceptionally high quality food when we go to
- 51:26Speaker 2: a restaurant. And I agree, I think we have great
- 51:29Speaker 2: restaurants here in the United States. Some of them are terrible,
- 51:32Speaker 2: but like, we have some great restaurants here, and the
- 51:34Speaker 2: quality of the food that is guaranteed by the regulations
- 51:37Speaker 2: that specify how food must be prepared and like, and
- 51:40Speaker 2: all of that is makes it so that we are
- 51:43Speaker 2: reliably getting very safe to eat nutritious things at a
- 51:49Speaker 2: lot of these restaurants. And we do not pay as
- 51:52Speaker 2: much for those things as we would have to if
- 51:54Speaker 2: we were paying the cost that the restaurant was paying.
- 51:56Speaker 2: And so they instead shift that cost to us by
- 52:00Speaker 2: having us tip the employees instead, and they pay those
- 52:03Speaker 2: employees less. And if we just shifted it back so
- 52:08Speaker 2: that we weren't said paining what that food is actually worth,
- 52:11Speaker 2: we would be like, Nope, not paying those prices, even
- 52:14Speaker 2: though ultimately we kind of are already paying those prices.
- 52:17Speaker 2: And if we're not, then all we're doing is ruining
- 52:19Speaker 2: someone else's life. So like tough pill to swallow.
- 52:23Speaker 1: It's gonna be difficult to do this, Yeah, but I
- 52:26Speaker 1: think most of us agree that it'll be worth it,
- 52:27Speaker 1: So agreed, we'll see if we can get there. There
- 52:30Speaker 1: was a fun little segment here that I found that
- 52:33Speaker 1: were tipping cultures our practices around the world, because, as
- 52:36Speaker 1: we've been alluding to this whole time, the United States
- 52:39Speaker 1: does tipping hard. No country on earth has embraced tipping
- 52:43Speaker 1: the way that the United States has. Tipping in the
- 52:45Speaker 1: US is like guns in the US wildly out of control,
- 52:49Speaker 1: way way beyond basic common sense and reasoning, and happening
- 52:53Speaker 1: at a staggering, alarming rate. I could just say gun violence,
- 52:57Speaker 1: but I would just say just getting guns in general
- 53:00Speaker 1: here is ludicrous and like the kinds of things that
- 53:03Speaker 1: people have access to and buy all the time. But
- 53:06Speaker 1: that's just to give a quick analogy for people who
- 53:09Speaker 1: understand what gun culture is like in the United States.
- 53:11Speaker 1: And I will say that like North America broadly has
- 53:14Speaker 1: pretty similar tipping practices across the countries of North America,
- 53:18Speaker 1: although again it's mostly at restaurants. This tipping for everything
- 53:22Speaker 1: thing that's going on in the United States pretty unique
- 53:24Speaker 1: to the United States.
- 53:26Speaker 2: Right absolutely now. In Japan and China it is not
- 53:29Speaker 2: only not customary to tip, it's actually insulting and embarrassing.
- 53:33Speaker 2: So if you're traveling these places, tipping is traditionally unwelcome,
- 53:35Speaker 2: to say the least, And you know, what because sometimes
- 53:38Speaker 2: this happens, like when I was in Italy, like it's
- 53:40Speaker 2: not accepted. Tipping was not accepted, but it was one
- 53:43Speaker 2: of those things where it's still popped up here and there. Yeah,
- 53:46Speaker 2: like it showed it just enough that was like a
- 53:48Speaker 2: little bit perervasive. So I would imagine that like you
- 53:51Speaker 2: should assume that in Japan and China, like based on
- 53:54Speaker 2: kind of like the cultural this stuff that we're talking
- 53:56Speaker 2: about here, that it's not welcome and it's offensive, but
- 53:59Speaker 2: you still may see it come up in some places.
- 54:01Speaker 2: So you may and that may be a little bit jarring,
- 54:03Speaker 2: like you might go, oh, I thought this was not
- 54:05Speaker 2: a thing, but like it still may pop up.
- 54:07Speaker 1: Well, And that's exactly it is that as more and
- 54:09Speaker 1: more travelers go to particularly from the United States, but
- 54:13Speaker 1: North America brobably, I guess as more and our travelers
- 54:16Speaker 1: go to places like Japan and China and try to
- 54:19Speaker 1: tip and leave extra money, many places, particularly in urban areas,
- 54:23Speaker 1: they are starting to accept tips here and there, and
- 54:26Speaker 1: even in some cases maybe slightly are starting to expect it.
- 54:31Speaker 1: This is a very unfortunate evolution of global capitalism, and
- 54:34Speaker 1: hopefully we can stem of the tide of this bad
- 54:36Speaker 1: idea before it embeds itself overseas the way that it
- 54:38Speaker 1: has in the United States. So generally speaking, I would say, like,
- 54:43Speaker 1: pay attention to what the expectations are. Ask if you're
- 54:46Speaker 1: not sure, and they will tell you. And do not
- 54:48Speaker 1: expect probably to be tipping in those definitely not in
- 54:52Speaker 1: rural spaces in Japan and China and maybe other other
- 54:56Speaker 1: Asian countries. Those are the two I found explicit information on.
- 54:58Speaker 1: But the expectation is no tipping. You might start to
- 55:02Speaker 1: see it crop up. Don't go out of your way
- 55:04Speaker 1: to do it right, like it's actually to like what
- 55:07Speaker 1: I read is, in a way, it's sort of like
- 55:08Speaker 1: saying like I'm better than you. Here's somebody to show
- 55:12Speaker 1: that I'm better than you, and they're sort of like
- 55:15Speaker 1: that's rude, Like just keep your money, I don't need
- 55:18Speaker 1: your charity.
- 55:19Speaker 2: Jerk right right, right exactly. So in Egypt and some
- 55:22Speaker 2: other parts of the Middle East, there's a culture of
- 55:24Speaker 2: tipping pretty much all service staff, doorholders, bathroom attendants, taxi drivers,
- 55:29Speaker 2: food service workers, guides, and hotel staff. However, the ethos
- 55:32Speaker 2: around tipping is very different. It is called bakshish and
- 55:35Speaker 2: as closer can to tithing or a sort of loosely
- 55:39Speaker 2: defined pay it forward type of system. It's very expected
- 55:43Speaker 2: regardless of the type of or quality of the service.
- 55:46Speaker 2: And evidently not tipping might mean that the doors are
- 55:48Speaker 2: locked and bathrooms are less accessible and service is not
- 55:51Speaker 2: as readily provided, whereas when you tip, you might find
- 55:54Speaker 2: your ability to move around and do things much easier.
- 55:56Speaker 2: There's far less barriers there.
- 55:58Speaker 1: And I also think that the amount of the tip
- 56:00Speaker 1: does not have to be particularly excessive. I don't even
- 56:03Speaker 1: think it's necessarily a percentage. It's like, here's a little
- 56:06Speaker 1: extra cash. And then they're like, oh, by the way,
- 56:08Speaker 1: this bathroom that was restricted is now open to you, right,
- 56:12Speaker 1: surprise stuff where they sort of have a levered a
- 56:14Speaker 1: poll to just say, like, you make my life a
- 56:16Speaker 1: little more comfortable, and I think your life a little
- 56:18Speaker 1: more comfortable.
- 56:19Speaker 2: Right.
- 56:19Speaker 1: But there is this sort of again pay it forward
- 56:22Speaker 1: type thing where it's not it's just not set up
- 56:26Speaker 1: the same way as the United States. But that was
- 56:28Speaker 1: a place where I saw that tipping does exist again,
- 56:32Speaker 1: not quite like the US, but it does have its
- 56:33Speaker 1: own version right absolutely Denmark. Denmark is labeled as one
- 56:37Speaker 1: of the happiest countries on Earth, and they have very
- 56:40Speaker 1: very little tipping in their culture, almost none. They largely
- 56:43Speaker 1: don't need it and kind of never really adopted it.
- 56:46Speaker 1: They just made sure people were paid appropriately. However, throughout Scandinavia,
- 56:50Speaker 1: it is fairly common to round up your check to
- 56:53Speaker 1: like the nearest dollar amount as sort of a gesture
- 56:56Speaker 1: of appreciation. I mean, this is going to come to
- 56:58Speaker 1: a percentage, like a single percent, like one percent or
- 57:02Speaker 1: less of your overall check. But rounding up is just
- 57:05Speaker 1: a way to say, like, here's a little extra. You know,
- 57:07Speaker 1: it's the like you gave me this change. I kind
- 57:10Speaker 1: of don't want to carry it around with me. I'll
- 57:11Speaker 1: just give it back to you and you can pocket
- 57:13Speaker 1: it and that's fine. Yeah, and they're like, thanks, that's great.
- 57:16Speaker 1: So like that was a gesture that seems to appear
- 57:18Speaker 1: in sort of Scandinavian countries. Yeah, not at all at
- 57:21Speaker 1: the level of the United States, where you're no basically
- 57:24Speaker 1: paying for your meal again or whatever.
- 57:26Speaker 2: You're the know, when you round up your check to
- 57:29Speaker 2: the nearest dollar here, it's to donate to a medical cause,
- 57:31Speaker 2: because our health care system is not is totally privatized.
- 57:35Speaker 2: So like instead of like rounding up to like, you know,
- 57:38Speaker 2: show your appreciation. You're rounding up to donate to Saint
- 57:41Speaker 2: Jude's Children's Hospital to help childhood cancer. So very different
- 57:44Speaker 2: experience here, I think. Yeah, all right, So as a
- 57:47Speaker 2: general rule, if you're traveling, you should ask if tipping
- 57:50Speaker 2: is customary. I respond accordingly, And in many circumstances people
- 57:54Speaker 2: will not mind earning a little extra. But in some
- 57:56Speaker 2: places it may be very insulting. And at the very least,
- 57:59Speaker 2: no one really wants to spread tipping culture where it
- 58:01Speaker 2: doesn't already exist. We want to try to avoid that
- 58:04Speaker 2: if possible, because it has created so many problems. And
- 58:07Speaker 2: so we as a general recommendation and maybe a call
- 58:10Speaker 2: to action, let's go ahead and do everything we can
- 58:12Speaker 2: to keep this tipping cancer culture contained. If we can't
- 58:15Speaker 2: get rid of it altogether, at the very least, let's
- 58:18Speaker 2: quarantine it off and prevent everybody else from adopting it.
- 58:21Speaker 1: Yes, so that is tipping. It is a thing that
- 58:23Speaker 1: we do that we don't want to do, and we
- 58:25Speaker 1: would like to stop doing it, and hopefully if over
- 58:28Speaker 1: time we can move our culture away from it. But
- 58:30Speaker 1: we do need to ensure that we don't set up
- 58:33Speaker 1: systems that promote, elongate, and incentivize tipping culture to persist.
- 58:39Speaker 1: So again as a sort of call to action, like
- 58:42Speaker 1: if you don't need a tip, like, please don't ask
- 58:46Speaker 1: for one. I get that it's very tempting to get
- 58:49Speaker 1: that extra cash, but if you can go without it,
- 58:51Speaker 1: please don't ask for one. Yeah, but in places where
- 58:54Speaker 1: people depend on tips for them to survive, please tip
- 58:58Speaker 1: them until we get our system fixed and they can
- 59:01Speaker 1: like earn a living wage, like we've got we gotta
- 59:04Speaker 1: be taking care of our people who are who are
- 59:06Speaker 1: out doing those things. So it's unfortunate, but like that
- 59:09Speaker 1: is the system we currently have, so like we can't
- 59:11Speaker 1: just stop tipping them until we figured out a way
- 59:13Speaker 1: to fix this.
- 59:14Speaker 2: Yep, exactly.
- 59:15Speaker 1: I think that's take on points. Though, is there anything
- 59:17Speaker 1: you'd like to add or anything that I forgot before
- 59:19Speaker 1: we transition to our recommendations.
- 59:21Speaker 2: I think the only thing we forgot is our next tadbreak.
- 59:30Speaker 1: All right, we are going to recommend some things. These
- 59:34Speaker 1: are things that we find joy in that are not
- 59:35Speaker 1: necessarily related to our topic. Sometimes they are today they're not.
- 59:39Speaker 1: This is I think a fun part. But before I
- 59:40Speaker 1: do that, I would like to get through our credits
- 59:42Speaker 1: really quick and then we'll get to the fun part,
- 59:44Speaker 1: which is the recommendations. So thank you so much to
- 59:46Speaker 1: my team of people writing in fact checking from Shane
- 59:49Speaker 1: and myself. Thank you for recording with me today.
- 59:51Speaker 2: Shane Hey, thank you for having me.
- 59:52Speaker 1: Our social media coordinator is Emma Wilson. And our person
- 59:55Speaker 1: who makes the sounds good is Justin. He does all
- 59:57Speaker 1: of our audio engineering, and the music that you hear
- 1:00:00Speaker 1: us also by him. Wherever you hear music, Justin did that.
- 1:00:03Speaker 1: So thank you Justin.
- 1:00:04Speaker 2: He's the best.
- 1:00:05Speaker 1: And of course thank you to our patron supporters. If
- 1:00:08Speaker 1: you would like to support this podcast, one way that
- 1:00:10Speaker 1: you can do that is by heading over to Patreon.
- 1:00:12Speaker 1: In addition, you can get episodes without ads, you can
- 1:00:15Speaker 1: get episodes before they actually publish, and you can get
- 1:00:18Speaker 1: other behind the scenes content and goodies of that nature.
- 1:00:21Speaker 1: And in addition, the thing that you probably want is
- 1:00:23Speaker 1: you want to hear your name from my voice on
- 1:00:25Speaker 1: these episodes locked in permanently in time for the period
- 1:00:29Speaker 1: of time that you are a patron supporter, and that
- 1:00:31Speaker 1: includes the like of such lovely people as Mike m Meghan,
- 1:00:34Speaker 1: Mike T, Justin, Kim Brad, Stephanie, Brian, Ashley, Kiara, and Charlie.
- 1:00:40Speaker 1: Thank you all very much. We really appreciate you.
- 1:00:43Speaker 2: Ah, you're the best. We love you so much.
- 1:00:45Speaker 1: In addition, you can leave us a rating and review,
- 1:00:48Speaker 1: tell a friend like and subscribe. You can head over
- 1:00:51Speaker 1: to our merch store. Apparently our our shopping cart link
- 1:00:54Speaker 1: is broken, so I will fix that. But we do
- 1:00:56Speaker 1: have merch for sale over there, and I will get
- 1:00:57Speaker 1: that fixed and figure out what's happening and why things
- 1:01:01Speaker 1: aren't working. But eventually they will, and I will report
- 1:01:04Speaker 1: back with an update when that happens. I'll probably post
- 1:01:06Speaker 1: to social media. Yeah. I think that is it for
- 1:01:08Speaker 1: our credits before we get your recommendations.
- 1:01:11Speaker 2: Yeah, sounds good.
- 1:01:12Speaker 1: All right, let's do it, yay.
- 1:01:21Speaker 2: Recommendations. Okay, So my recommendation is music. If you like music,
- 1:01:26Speaker 2: I like music, most of us like music that we
- 1:01:28Speaker 2: hang out here, and so hopefully you will enjoy this
- 1:01:31Speaker 2: new record. There's a band out of New York called
- 1:01:34Speaker 2: Hotline T and T. I believe they're out of New York.
- 1:01:36Speaker 2: They seem to play in New York a lot. They're
- 1:01:37Speaker 2: called Hotline T and T, and they are a newer
- 1:01:41Speaker 2: I would describe as like a shoegaze band, very fuzzy instrumentation,
- 1:01:46Speaker 2: very nineties feel, like, just really really good and really
- 1:01:49Speaker 2: catchy stuff. They have a new record out called Raspberry
- 1:01:52Speaker 2: Moon that is phenomenal if you like kind of like
- 1:01:55Speaker 2: the current feel right now where you know you like
- 1:01:58Speaker 2: guitars that sound like they hear played through like fifteen
- 1:02:00Speaker 2: distortion pedals, but they're still melody to it. Like, if
- 1:02:03Speaker 2: you like old Smashing Pumpkins and anything in that vein,
- 1:02:06Speaker 2: then I think that you'll dig Hotline T and T.
- 1:02:08Speaker 2: I think it's an update on the genre. I think
- 1:02:11Speaker 2: that it is a little bit catchier than some of
- 1:02:13Speaker 2: the more like heavier Smashing Pumpkins. It's like all the best,
- 1:02:18Speaker 2: all the pretty parts of Smashing Pumpkins put onto an album,
- 1:02:21Speaker 2: so it's worth giving it a listen. So if you
- 1:02:23Speaker 2: like that sort of stuff, the band is called Hotline
- 1:02:25Speaker 2: T and T and their album is called Raspberry Moon.
- 1:02:28Speaker 1: Fun All right, cool, Yeah, I'm gonna recommend a board game. Yeah,
- 1:02:33Speaker 1: it's been been a minute since I did that, probably
- 1:02:35Speaker 1: at least two episodes, so I'm gonna do it again.
- 1:02:39Speaker 1: I will preface this by saying that the theme of
- 1:02:42Speaker 1: the game not good, but the game itself quite good.
- 1:02:46Speaker 2: Yeah.
- 1:02:47Speaker 1: And so the theme of the game is called unconscious Mind, okay,
- 1:02:50Speaker 1: and this is all about Freud's theory of the unconscious,
- 1:02:54Speaker 1: and it's just not particularly tongue in cheek, although they
- 1:02:57Speaker 1: do have some intentional Freudian slips written to the rules.
- 1:03:00Speaker 1: It's pretty funny. If you look at pictures of this game,
- 1:03:03Speaker 1: it looks very intimidating and overwhelming, and even reading through
- 1:03:06Speaker 1: the rules the first time, I was a little taken aback,
- 1:03:09Speaker 1: and then I figured out how it all works together,
- 1:03:11Speaker 1: and I was like, oh, I get it. It's actually
- 1:03:13Speaker 1: not that it's not that complex, and it looks very complex.
- 1:03:16Speaker 1: It looks alarmingly complex, but it's really not actually not
- 1:03:19Speaker 1: that hard to learn or to teach. It's one of
- 1:03:21Speaker 1: those things where it's like, on when it's your turn,
- 1:03:23Speaker 1: you choose one of three things that you're gonna do.
- 1:03:25Speaker 1: That's pretty much it. Where it gets complicated is that
- 1:03:28Speaker 1: every choice you make could have a cascade of effects,
- 1:03:30Speaker 1: and so you're just trying to plan, like what cascade
- 1:03:33Speaker 1: is going to be the biggest advantage to me. But
- 1:03:36Speaker 1: they also did a really good job that like, no
- 1:03:38Speaker 1: matter what decision you make, it's probably not gonna not
- 1:03:41Speaker 1: do anything for you or even like hurt you in
- 1:03:43Speaker 1: any way. It just won't be as good as it
- 1:03:44Speaker 1: could have been. And I love that when they set
- 1:03:46Speaker 1: that up well in a game. Yeah, so the art
- 1:03:48Speaker 1: in this is fantastic. They have all these cards that
- 1:03:50Speaker 1: are called latent Dreams and there's manifest dreams, and the
- 1:03:53Speaker 1: art on these cards to depict dreams phenomenal. It's so good.
- 1:03:58Speaker 1: I love that they have these client that that are
- 1:04:01Speaker 1: these cards that they're like objectives you have to complete.
- 1:04:04Speaker 1: All you have to do is just it's actually like
- 1:04:06Speaker 1: you're barely doing anything to complete these objectives. You literally
- 1:04:09Speaker 1: just like move a dial down like they're done.
- 1:04:11Speaker 2: That's fun.
- 1:04:12Speaker 1: What's really clever about it is they have these transparent
- 1:04:15Speaker 1: cards that are the same size that have this sort
- 1:04:17Speaker 1: of roar shock ink blot looking like haze that you
- 1:04:21Speaker 1: then put on top of the client card and that's
- 1:04:23Speaker 1: called their grief layer. Okay, and it's just this really
- 1:04:26Speaker 1: fun idea where you have to first get rid of
- 1:04:27Speaker 1: the grief layer and then you can like finish treating
- 1:04:30Speaker 1: the client.
- 1:04:31Speaker 2: Oh that's fun.
- 1:04:31Speaker 1: Yeah. So again, theme is terrible, but the game itself
- 1:04:35Speaker 1: is actually very cool and very very well designed. I
- 1:04:38Speaker 1: really like how they worked everything together, and it's actually
- 1:04:42Speaker 1: really fun to like try and plan, like, Okay, if
- 1:04:44Speaker 1: I take this action, that'll cause this cascade of things
- 1:04:47Speaker 1: that'll happen, and I'll get all these cool bonuses along
- 1:04:49Speaker 1: the way because I set it up beforehand or something.
- 1:04:52Speaker 1: That's pretty much it, and I really like it. It's
- 1:04:54Speaker 1: a cool game. So if you're interested in checking out
- 1:04:56Speaker 1: a game that's going to take up your whole entire
- 1:04:58Speaker 1: table and look very intimidating but ultimately be pretty fun
- 1:05:02Speaker 1: and easy to pick up, it's called Unconscious Mind. It's
- 1:05:05Speaker 1: from Lucky Games, and I think Fantasia Games of the
- 1:05:08Speaker 1: two publishers on that very cool. I love that sweet
- 1:05:11Speaker 1: all right, If you would like to tell us about
- 1:05:12Speaker 1: board games or hotline, T and T or other bands,
- 1:05:15Speaker 1: or if you would like to chime in with your
- 1:05:17Speaker 1: thoughts on tipping and anything that we've talked about in
- 1:05:20Speaker 1: this episode. We did take some somewhat controversial stances, but
- 1:05:23Speaker 1: really try to do so in the context of supporting
- 1:05:26Speaker 1: humans ultimately, Like it sounds like we weren't in some places.
- 1:05:29Speaker 1: Probably when we say like no, taxes on tips, probably
- 1:05:32Speaker 1: not a good idea, but we did really try and
- 1:05:35Speaker 1: think of like big picture, like how is this going
- 1:05:36Speaker 1: to help or hurt people in the long run? And
- 1:05:38Speaker 1: if you have thoughts about that, you can email us
- 1:05:40Speaker 1: directly at info at WWDWWD podcast dot com or on
- 1:05:44Speaker 1: the social media platforms and we do look forward to
- 1:05:46Speaker 1: hearing from you. But as I said, if you would
- 1:05:48Speaker 1: like to go leave us a five star writing that
- 1:05:50Speaker 1: really helps us get into other people's feeds and then
- 1:05:52Speaker 1: we get more listeners and then they get to learn
- 1:05:54Speaker 1: things too.
- 1:05:55Speaker 2: Yeah.
- 1:05:55Speaker 1: I think that is what I have to say. Is
- 1:05:57Speaker 1: there anything that I'm missing or that you'd like to
- 1:05:58Speaker 1: add before we wrap up today?
- 1:06:00Speaker 2: I got nothing else.
- 1:06:01Speaker 1: All right, let's end Tipping together everybody. This is Abraham.
- 1:06:04Speaker 2: YY, this is Shane.
- 1:06:06Speaker 1: We're out. So.
- 1:06:06Speaker 2: Yeah, you've been listening to Why we do what we do.
- 1:06:10Speaker 2: You can learn more about this and other episodes by
- 1:06:13Speaker 2: going to WWDWWD podcast dot com. Thanks for listening, and
- 1:06:18Speaker 2: we hope you have an awesome day.