In this insightful conversation, David C. Smalley, a fact-checker and comedian, tackles the controversial institution of tipping in America. He argues it perpetuates racism, sexism, and exploitation of low-income workers while placing the burden of fair wages on customers. Smalley discusses the outdated minimum wage for tipped workers and debunks the myth that raising workers’ pay would inflate prices dramatically. He highlights the inequities faced by service workers and proposes a reevaluation of how we compensate those in the service industry.
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Tipping's Controversial Origins
Tipping was initially frowned upon, seen as a bribe for preferential treatment.
In the US, tipping emerged after the Civil War, enabling employers to avoid paying formerly enslaved people.
insights INSIGHT
Tipping's Economic Impact
Tipping is unique to the US, shifting the burden of fair wages from businesses to customers.
Other businesses incorporate wages into prices; customers don't decide if employees 'eat tonight'.
question_answer ANECDOTE
The Performance Pay Analogy
Comedian Dave Chappelle's analogy: performers get paid for the attempt, regardless of performance.
Tipped workers face instant pay cuts for minor mistakes or personal distractions.
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Tipping isn't a city in China. But it is a shameful institution that encourages racism, sexism, harassment, and exploitation of low-income workers while placing the burden of compensation on customers instead of business owners. If most restaurants and service-based industries in the world can exist without relying on tipping, why does the custom persist in the United States, and what would be a fairer, more sustainable alternative?
Welcome to Skeptical Sunday, a special edition of The Jordan Harbinger Show where Jordan and fact-checker, comedian, and podcast host David C. Smalley break down a topic that you may have never thought about, open things up, and debunk common misconceptions.
The federal minimum wage for tipped workers is $2.13 per hour -- the same as it was 31 years ago (though it can be even less in some states under certain circumstances). Why is it the customer’s responsibility to pay these workers a fair wage?
Why, contrary to the protests of whoever happens to be holding the purse strings, raising the minimum wage for the person serving you will not make your burger cost $25.
How tipped workers are still expected to fulfill untipped tasks during their "down" time, but without a raise in compensation to make up for it.
Why the institution of tipping encourages racism, sexism, harassment, and exploitation of low-income workers.
How the custom of tipping came about, why it persists in places like the United States, and what we should be doing to replace it with something that would better serve the server and served, alike.
Connect with Jordan on Twitter, on Instagram, and on YouTube. If you have something you'd like us to tackle here on Skeptical Sunday, drop Jordan a line at jordan@jordanharbinger.com and let him know!
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