Exploring Price Controls and the History of Tipping in America

State-level laws regarding price controls are largely ineffective in lowering prices but do not create shortages in the market, contradicting the expectation that such regulations would lead to market distortions. Instead of inducing queuing or limiting access to goods, price controls do not typically occur in the U.S., even amidst fears of wartime economy measures. The discussion then shifts to the practice of tipping, which has a complex history in America. Tipping, originating from English criminal slang around the 1700s, developed from a cultural practice in Tudor England where hosts would reward servants for additional labor during visits. This aristocratic custom was adapted by Americans visiting Europe in the 19th century. The institutionalization of tipping took a troubling turn with the Pullman railway service in the 1860s, where tipping became a crucial component of income for newly freed black men, highlighting a legacy tied to slavery and creating a unique model of low-paid service work in the United States. Tipping serves dual roles: as a form of customer benefit for enhanced service and as a means of compensation for low wages, revealing deeper social and economic implications of the practice.