Journalist Nina Martyris discusses the controversial history of tipping in the United States, from its roots in post-Civil War labor exploitation to its enduring presence in American culture. The podcast explores the societal impacts of tipping, opposition from figures like President Taft, and the complex evolution of tipping norms despite attempts to abolish the practice.
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Quick takeaways
Tipping in the US originated as a way to exploit cheap labor post-Civil War, enabling companies to pay low wages.
The persistence of tipping in the US reflects systemic inequalities and perpetuates a power dynamic requiring workers to perform for their livelihood.
Deep dives
The Origins of Tipping and the Anti-Tipping Movement
Tipping originated in Europe during the Middle Ages as a recognition of good service. The anti-tipping movement in America began in 1915 with the aim of banning tipping due to its feudal nature and class divisions. There were efforts to legislate against tipping, but they failed as tipping became deeply ingrained in American culture.
The Impact of Tipping on Labor Practices
Tipping became a way to exploit cheap labor, notably in industries like restaurants and Pullman Car Company. This practice thrived during prohibition when businesses relied on tips due to reduced revenues. The inability to pay workers a living wage led to the entrenchment of tipping as a means of compensation.
Minimum Wage Laws and the Persistence of Tipping
Despite the establishment of minimum wage laws in 1938, the exclusion of restaurant workers perpetuated the sub-minimum wage tipping system. In 1966, the sub-minimum wage was frozen at $2.13 per hour through a tip credit amendment, reinforcing the reliance on tips for compensation.
The Evolution of Tipping in America and Europe
While tipping became entrenched in America, Europe transitioned to a service charge model to ensure fair pay for workers. The persistence of tipping in the US reflects systemic inequalities and perpetuates a power dynamic that requires workers to perform for their livelihood.
Tipping is a norm in the United States—and it's always been controversial. The practice took off after the Civil War, as employers sought cheap labor from formerly enslaved people: if tips were expected, companies could get away with paying laughably low wages. But the practice was always controversial, and has been vehemently challenged since it first came to the U.S. from Europe. We speak with Nina Martyris, a journalist who's written about the history of tipping in the United States, to find out how tipping—once deemed a "cancer in the breast of democracy"— went from being considered wholly un-American to becoming a deeply American custom.
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