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It is a difference in who decides how much they’re paid. In a traditional business their pay is at the discretion of the business and thus in competition wit

It is a difference in who decides how much they’re paid. In a traditional business their pay is at the discretion of the business and thus in competition with what could be the business’s profits. Tips are inaccessible to the business, so they get paid more closely to what consumers are ok with paying. I’m probably paying more too because of being guilted into feeling like I must tip x% because I’m directly responsible for the person’s wages. These two points mean there’s no guarantee a tipped wage would convert 1:1 into an hourly wage if we simply removed tipping, even if the value provided by the tipped employee stays constant.

sellyme 6y ago
> It is a difference in who decides how much they’re paid. In a traditional business their pay is at the discretion of the business and thus in competition with what could be the business’s profits. I don't really see how this is any different to me going into an American restaurant today and having the waiter's pay be at the discretion of myself, and in competition with what could be my money. At the end of the day it's still a person deciding how much money to give the waiter, knowing that they can keep any that's left over. > I’m probably paying more too because of being guilted into feeling like I must tip x% because I’m directly responsible for the person’s wages. Entirely plausible, but I see eliminating this consequence of tipping to be a huge positive. If a significant portion of someone's pay relies on guilt, then clearly the actual service they're providing isn't worth what they're being compensated for.