ACT Success - Reading Comprehension Practice #5

The debate over tipping culture in the United States has persisted for generations, stirring up conversations about fairness, equality, and the economic well-being of service workers. While some argue that tipping is a way to reward exceptional service, I contend that the U.S. should phase out this antiquated practice and instead pay service workers a fair, living wage.

The History of Tipping

Tipping in America has roots that dig deep into feudal Europe. Back then, tipping was a token of gratitude from masters to their servants. Wealthy Americans traveling abroad in the 19th century saw this custom and decided to bring it home, believing it added a veneer of sophistication to their social interactions. However, what started as a European import morphed into something far more complex and troubling after the Civil War.

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As the country grappled with the aftermath of slavery, employers, especially in the hospitality and railroad industries, found a loophole to exploit newly freed African Americans. Rather than paying them a fair wage, these employers used tipping as a way to sidestep the costs of proper compensation. The Pullman Company, notorious for its luxury train services, hired Black men as porters and paid them paltry sums, expecting them to make up the difference in tips from predominantly white passengers. This system did more than just save money for the companies—it entrenched racial and economic inequalities that linger to this day.

The early 20th century saw a wave of opposition to tipping. Many Americans viewed it as undemocratic, a practice that clashed with the country’s ideals of equality. Critics condemned tipping as a relic of aristocratic society that had no place in the new world. States attempted to abolish it, but businesses fought back, recognizing that tipping allowed them to shift wage costs onto consumers. By the 1920s, these anti-tipping laws had been repealed, and tipping became a fixture in American service industries, rooted not in gratitude but in exploitation.

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What’s the Problem?

The tipping system has always been inconsistent, and for many, it has also been inequitable. In restaurants, servers live on the whims of patrons, with tips fluctuating based on factors like customer mood or ingrained biases. Women and people of color frequently find themselves on the losing end of this arrangement, often receiving lower tips due to prejudice. This isn’t just unfair—it perpetuates inequality in a workforce already struggling with wage gaps and economic disparities.

Worse still, tipping shifts the burden of paying workers from employers to customers, creating a distorted system where businesses can dodge their responsibilities. In most jobs, employers are expected to pay their workers; in the service industry, this duty falls to the patron. As a result, the minimum wage for tipped workers stagnates at a meager $2.13 per hour, forcing many to depend on tips to make a living. This wage, frozen since 1991, leaves workers in a precarious financial position, struggling to cover basic necessities.

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Some argue that tipping incentivizes better service, but the reality is far murkier. Studies reveal that the link between service quality and tip amounts is tenuous at best. Customers tip for a variety of reasons, often unrelated to the service they receive. According to a Pew report, 60% of Americans admit to feeling pressured to tip more frequently, even in situations where the service is minimal. This phenomenon, known as ""tipflation,"" has expanded the expectation to tip across various services without any corresponding improvement in quality.

Moving Forward

So, where do we go from here? The answer lies in reimagining how we value and compensate service workers. A system that pays a fair wage would eliminate the inconsistency and inequity that tipping perpetuates. Countries that have ditched tipping in favor of higher wages, like those in Europe, demonstrate that businesses can thrive while treating their workers fairly. Such a model reduces exploitation and fosters a more equitable industry.

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Individuals can take action by supporting businesses that have adopted no-tipping policies and paying fair wages. By choosing to dine or shop at establishments that prioritize ethical compensation, consumers can help push the market in a more just direction. Additionally, people can engage in conversations about the pitfalls of tipping, raising awareness among friends and family about the need for change.

Companies, especially those in the service sector, can lead by example. By phasing out tipping and offering transparent wages, businesses can create a more stable and equitable environment for their employees. Implementing service charges or adjusting pricing models to reflect fair wages can help balance the scales, ensuring that all workers are compensated for their efforts. Businesses can also explore tip-pooling systems that distribute tips equitably among all employees, including those behind the scenes, to reduce income disparities.

Governments have a critical role in this transformation. Lawmakers can push to abolish the subminimum wage for tipped workers, guaranteeing that all employees receive at least the standard federal minimum wage. This could involve passing laws similar to those being considered in states like New York and Maine, which are moving to phase out the subminimum wage. Additionally, governments should enforce wage and hour laws more rigorously, cracking down on businesses that exploit loopholes to underpay their workers.

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In sum, the journey toward a more equitable service industry requires collective action from individuals, businesses, and governments. By working together, we can move beyond tipping and create a fairer system that truly values the hard work of all service employees."