The Truth About Tipping
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Video Transcript
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Tipping isn't about rewarding good service. It's about not paying wages. Here's what actually
happened. After the Civil War, restaurants wanted free labor.
So they hired newly freed slaves and paid them nothing. Customers were expected to tip instead.
The system worked perfectly for owners. Zero labor costs. All the risk on workers.
Then it spread. Other industries saw the model and copied it. Why pay employees
when customers will do it for you? Laws tried to fix this. Minimum wage was
introduced. But restaurants lobbied hard. They created a separate lower minimum for
tipped workers. It's still legal today. So the practice stuck.
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