Any basic economics class would tell you, people react to incentives. So when you take away the incentive, people don't work as hard anymore! That's precisely what's happened to tipping in America, where on several occasions I see waiters chasing down customers because they didn't leave a big enough tip (even at a Korean restaurant!) as if it's a duty or an obligation. If tipping has become an obligation, it's become a tax, and a tax on eating out. I already think that eating out is pretty expensive and "taxing" on the wallet as it is (the price of ingredients gets jacked up, pay for the building, the cooks, and the dish-washing, etc.) but then you add a 18-20% tax on top of it? That really disincentives me to go to a sit-down restaurant. And yes, nowadays in L.A. it's become standard to tip at least 18% (many restaurants offer that as the standard tip portion). It's really become ludicrous: the tips go to the waiters, who I would argue don't do as much as the cooks, the dishwashers, and many of the restaurants' other personnel. (I do understand that at some places the waiters do have to give a portion of their tips to the busboys, other staff, etc.). The waiters will counter that their pay is mostly coming from tips, which is unfortunate, but as my friend Jibraun once said, "when did that become my problem? I didn't force you to become a waiter." It's also the restaurants taking advantage of the situation by offering dirt low wages to service staff with the promise that they get tips. It's really a whole chain of people taking advantage of others and having their hands in the next guys' pocket. The healthcare industry, the legal industry, the real estate industry, all of it is just taking a percentage off the top. Sigh.
Recently I went to Las Vegas (again!) and witnessed a couple hitting one of those progressive jackpots (yes, apparently people do win those) for like $200,000+. A LOT of money and they seemed really stoked, more than just the average $10 blackjack table. Others around them started wondering what they'd do with the money, but then the dealers immediately talked about one thing: "How much do you think that couple tipped their dealer?" One dealer offered a story that someone who had won $50,000 or something tipped 5 grand, or 10% or something. My initial instinct was, "WHAT????" Tipping a dealer $20,000? For what? Doing her job? Flipping the cards over off a pre-shuffled deck? For getting just as lucky as the couple who won the jackpot to be working at that exact table that night? But what made me kind of upset was how entitled the dealers seemed to that tip, like it was expected that the couple should give a tip, and that anything less would be met with disappointment and maybe even anger. "How DARE they not tip $20,000 of their $200,000 winnings?" was kind of the attitude that I felt. First of all, that couple is going to be taxed profusely off their jackpot winning, like lottery winnings: more taxes than income taxes, they'd be lucky to walk away with half of that $200k. The tip they would give would be tax-free to the dealer. (Sure tips are supposedly taxable, but how many people don't report their cash tips?) In the end, though, it was the entitlement that got me. Tips should be to encourage good service and make a waiter grateful, but now the pendulum has swung so that NOT tipping the appropriate amount would be considered an insult? Seems like too lofty of an expectation.
Tipping is another example of an even bigger problem Americans have, IMO. Overspending; not being fiscally responsible. It's a consumer culture, and America's consistently top-ranked economy in the world is based on people spending and taking money out of their pockets and putting it into the economy, but some of the financial decisions people make really baffle me. A guy who's struggling to make ends meet living with his mom spends $50 on a random dodgeball jersey. Flying into Vegas for a Vegas for a weekend of fun on the Strip at lofty prices despite making median income at home (those trips are more for high society, and you can take buses/ rideshare to Vegas/ stay off the Strip for much cheaper!) People taking Uber or Lyft everywhere, which don't seem like much per trip, but if you're taking Uber 5 times a night to get to the next bar and then home, it adds up! And tipping! It all comes back to my primary concern that a person only has one income (or two if they're really hard-working) but like a thousand places to spend that income on! It would really behoove people, I think, to take a financial education course senior year of high school, right before going into the big bad world where everyone wants to get a hand in your pocket. From what I see amongst my peers and fellow adults, a lot of them would do well to take that course.
Fantasize on,
Robert Yan
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