This is a guest post by ‘Jason Garik‘. I don’t particularly disagree with what he writes, and in fact

Last season one player in the NFL decided to not follow tradition (and the NFL handbook) when it came to the pregame pla

Some twenty plus years ago when I first passed my driving test in California the lady at DMV in San Jose pointed out tha

Update: TimN has a post on the same subject that is well worth reading Way back in the early days of the internet, John

When the story emerged that Roger had made a donation to Duke’s campaign, and there were calls to boycott his restaura

Bit by Bit: How Peer-to-Peer Technology Is Freeing the World argues that today’s emergent technology is about more

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  • It’s Exactly like Regular Sports Bar in Here. I Nike Chase Daniel Jersey will only think about conversation NFL executives had https://www.umagneticballs.com that fateful day Gee how can we alienate our fans? Next get accessories that will will allow you to display the items proudly.
    With there being really numerous replica nfl with really high…[Read more]

  • I saw the movie Reds when it came out in 1981, and I still rewatch it to this day. After all these years, the movie holds up as one of the most intellectually interesting and visually powerful portrayals of lost [Read story]
    • I also saw this film when it first came out and I agree; it is a 3+ hour intellectual blockbuster and a fabulous love story too.

      I think the following alludes to your later claim that these are the characteristics of all statists (red, brown, red state, blue state, etc.), Jeffrey, and faith in the state, however horrible, is the problem!

      “And here we come to understand something of the strange mind of the dedicated communist ideologue, so dogmatic in his adherence to a creed that nothing can shake the faith, not even the deaths of millions and millions of people. “

  • My Eastern New Mexico News column for the week
  • Just a heads-up: After tonight my internet is going to be shut off for a couple of days (until I’m able to pay the bill). Depending on the weather, I may plop the laptop in the bike trailer and ride over to [Read story]
  • Who in their right mind would be in favor of interventionism?

  • “The police beat me both during Hitler’s reign and during Communist times, and I could not see any difference. Both were very painful.” – Richard Wurmbrand, Tortured for Christ, p. 46, 1967

  • I don’t think things are getting worse.  I think we just are more aware of the problem because of video cameras are everywhere now, and the internet lets the information spread quickly. The subreddit https://www.reddit.com/r/badcopnodoughnut/ reveals new abuses every day.

    It is hardly reasonable to expect the government to be an unbiased arbite…[Read more]

  • For the past few years, police departments have been on something of a power trip in the United States. Only citing the lesser-known instances that come to my mind, cops have assaulted autistic teenagers and murdered unarmed civilians, and were subsequently cleared of all charges and let back on the force. A zealous, dogmatic conservative…[Read more]

  • Not only in Honduras!

    Amusingly, that is exactly the argument that Evo is currently making in Bolivia to justify his intention to run again. Not only is he arguing that the constitution is unconstitutional but it is a made to measure constitution that he, himself, imposed on the country.

  • I walk into a restaurant and am promptly led to a table. A server — a cheerful woman who looks to be in her late twenties — immediately approaches, introduces herself, takes my drink order, and returns with a [Read story]
    • I have always been uncomfortable with tipping. First, if you travel a lot, you usually do not know how much is customary to tip. Second, the absolute amount of tipping depends on what the client spends, and in fine dining, especially wine: if you have a couple of 700$ SuperTuscany bottles, not to mention some Bordeaux, the 15%% of the waiter can easily be several hundreds dollars. Third, it does not make a lot of economic sense: if you are not likely to return to the restaurant, there is no incentive to tip after the dinner. Fourth, especially when I was young and money-constrained, it made me feel pressured and anxious.
      I especially remember an experience of around 30 years ago. As a recent graduate, I had a dinner in a posh restaurant in Boston with maybe 15 colleagues after a day of training, and it was my office turn to pay. I received a bill of around 2.000$, and, with shame toward my office, I decided to tip 200$ because I heard something about a customary tip of 10%, which, for a guy like me that used to be a part time waiter in Italy for most of high school and college, seemed an outrageous amount. After a while the waiter came back and talked to an American colleague saying that he was expecting 15%. When the guy told me that I HAD to tip more, I felt so pissed and humiliated that I tipped only 50$, instead of the 300$. The situation became so tense that the American guys had to tip instead of me on my way out.
      Think in this way: the consumer good is not the food or the service, it is the complete experience, with all its components organized and delivered in the best way possible. This is the job of the enterpreneur, in this case the owner of the restaurant. It makes much more sense the way it is in Europe: you are not expected to tip, the full price is clearly written in the menu, and the restaurant owner has his arrangements with his employees. You tip only if you received an unexpectedly great service, and the tip is really something extra.
      Now I do not care much, because I am relatively well-off, so I always tip what I think is around the higher number of the costumary percentage, but I still feel a bit stiffed every time I go to a restaurant. I am basically subsidizing other patrons that are spending less than me or are deciding to be free-riders.

    • @massimomazzone
      Tiping IS expected in America and everyone knows it. Don’t go if you can’t tip.

    • @justinhale But the cracks are starting to appear. This Google search for “tipping hospitality included”…
      https://www.google.com/search?q=tipping+“hospitality+included”
      … leads to many interesting articles about US restaurants that are experimenting with doing away with tips and paying their staff decent wages instead.

    • I couldn’t agree more. The problem is not tipping or not tipping. The problem is that restaurant owner think that it’s acceptable to not pay the people working for them properly…

    • Amen.

    • (This website doesn’t handle the above URL properly. Just copy-and-paste it into the browser address bar.)

    • Well, I NEVER tip. Instead I make a gift at the end of the meal and ALWAYS in cash. I also make sure that the server understands the importance of distinguishing between the two.

    • I have mixed emotions because I lived by tips for six years, but I didn’t agree with the concept. Go figure! My father didn’t tip, or very little. My mother overtipped. Again, mixed feelings. My wife overtips, adding to mine sometimes. I go along, except when she is totally wrong, as in when we get terrible service. I explain to her that she is encouraging laziness or incompetence or both.
      And here we come to the one time that tipping is helpful. If the service is poor or bad the tip should reflect this. It encourages the server to examine life choices. Maybe the server is not suited to the profession but in denial.
      Once the service was so terrible, as bad as could be imagined, and I wanted to leave without paying, but explain first. My wife was horrified and strongly objected, but we compromised. I subtracted the cost of my uneatable order and left no tip. I still think the correct response was to wait for the manager and explain, but we had been there for 2.5 hours already, and my temper was short. In retrospect, I should have gone over the manager’s head to the food service manager, who may have been incompetent also, but I least I would have felt better.
      In conclusion, there are pros & cons to tipping. The best argument against is: How can you draw a line? Why tip one service profession and not another? Argument for: Tipping gives the customer some control besides just complaining, which is often useless. Money talks louder.

    • Tipping is a horrible custom. It is considered an insult in Japan.
      One of the nice things about Peru is that there is no tipping (except in places that have been corrupted by American tourists).

    • Yeah, on one of my first trips to Japan, I made the mistake of tipping the customary American amount at a yakiniku restaurant. The waitress chased me down the street to give me my money back. I thought I was being generous, but later learned in Japan leaving a tip means you are trying to encourage the waiter to improve, ie, you thought he/she did a bad job.

    • @donduncan wrote: “Argument for: Tipping gives the customer some control besides just complaining”

      I think one of the things that caused the demise of tipping in Australia is that the restaurant scene became more competitive, and that the consumer had other ways to express their preference.

      During my childhood in Sydney, when restaurant tipping was the norm, restaurants didn’t even display their menus outside! You went in and, if you liked the look of the place, you took your chances. I don’t think there were restaurant reviews in the newspaper back then, and there was certainly nothing like the reviews on restaurant pages on TripAdvisor.

      Also, “just complaining” works much better nowadays. If there’s a problem, you will achieve more if you let them know at the time and give the restaurant a chance to correct the problem, than if you send some vague signal by adjusting the size of your tip.

    • You know what is interesting, I see articles that shame people for not tipping, , that the restaurant industry decrees you should tip at least 15% even when the service is bad, and just “talk to the manager”, otherwise you’re “messing with someone’s livelihood”, and the restaurant industry at the same time HATES sites like Yelp and thinks it’s unfair to complain online, again, they think that’s “messing with someone’s livelihood”. If we’re unhappy with the service, we can’t reduce the amount we tip, and we can’t complain online, they’re attempting to use shame to dictate to customers a very limited “acceptable” avenue of recourse for bad food and/or bad service, all in their favor.

      Two things:

      1. If I’ve already lost an hour or more of my life eating bad food and/or enduring bad (usually slow) service, I’m not going to sit around in that restaurant longer while I wait for the manager to come out and obsequiously offer me a coupon for a half order appetizer at a restaurant I have no plans of eating at again. The only time I would do so is if the food and/or service was so appallingly bad that being comped the entire meal is called for, but such situations are exceedingly rare. But for commonplace bad service/bad food, I’m not going to chase my losses by wasting more time there.

      2. What do these anti-Yelp restauranteurs think happened before Yelp and the internet? If someone had a bad experience at a restaurant, they’d tell their coworkers around the water cooler, their friends on the golf course or gym locker room, at dinner parties, etc, and word of mouth would get around, and the restaurant owner would wonder why his dining room was empty on a Friday night, right before he had to go out of business. At least with Yelp, a restaurant owner can see what is being said about his business, can make improvements, and also on Yelp can publicly reach out to the people who gave him bad reviews, so that other potential customers can see he is a responsive business owner who will make things right if people have a bad experience.

    • This is a very culturally specific topic that does not lend itself to generalisation, and the US approach is very atypical. Indeed it makes no sense whatsoever in many countries.

      I recall being in the back of beyond in war torn Bosnia in 1994 and having a waitress run out to where I was parked with the money I had ‘forgotten’ on the table. My Croatian friend tried to explain it was a tip and that is what people did where I came from, but the waitress was having none of it, because a ‘tip’ was the local equivalent of a few pennies, not the hard currency note I had left. I more or less had to beg her to just keep it and I imagine she went back inside thinking what weird people some foreigners are.

      Tipping in that part of the world is now more acceptable, but no one expects more that 10% even if the service is truly stellar.

    • +Massimo Mazzone When you go to an out standing restaurant tell the host and your guests (if any) you don’t tip before they seat you, because you don’t believe tipping is honest, be honest up front. Otherwise you are a liar and a scam artist. Betting You will get a good view of the kitchen, a restful wait they will be out of all the fine wines you order, and the next time you will see your server is when he clocks out for the night. Rudeness needs to be spotlighted, Try paying your best people less than industry standard and watch how fast resumes start to fly.

    • If you are demanding upfront honestly, you should be directing that at the restaurants, at the sly little shell games they play with prices. I’ve traveled extensively throughout Europe and Japan. The prices are usually a nice round number and always include tax, and service is included, so if I sit down at a restaurant and order an 18 euro entree, and a 2 euro dessert, a 5 euro glass of wine, I know without a doubt the 20 euro note in my pocket is going to cover my cost without having to do any math in my head. And then the 2 euro coin I might happen to have in my pocket that I leave on top of that will be appreciated, not expected. But here in the US it’s $17.99 for an entree, $1.99 for a glass of iced tea, and on top of that add 8.25% for tax, and an expected 18% gratuity, and suddenly that $20 and $5 you have in your pocket aren’t enough to cover a meal with an advertised price of under $20. People who come into a meal with a round idea in their heads of what it is going to cost based on what the menu prices are and then see a bill over that mentally budgeted amount due to the tacked on fees are going to be tempted to scrimp the only place they can to get it closer to their expectation, and that is in how much they tip – even when using credit cards. And don’t try to put the blame all on the customer for underestimating. The “$**.99” price is a timeworn consumer psychology strategy to lull consumers into perceiving an item is cheaper than it really is, if restaurant owners didn’t know this and try to exploit it, they would simply price stuff at $20 even instead of “$19.99” to play that 1 cent shell game, so they can’t blame customers for doing the very bill underestimating they are trying to encourage. Pricing menus in round numbers, with tax included (like every other country does), would actually do a lot to simplify billing and customers’ expectations of what the bill will be, and would result in less uncertainty about tipping.

    • Generous, cheerful tipper here. Please don’t forget that.

      Used to consult a group of restaurants in Michigan. The GM used to say, “No one spends more time and energy on sales training than we. That said, I know at any given moment–no matter how hard we try–someone is having a bad experience in one of our restaurants.” Minimizing bad experiences was a necessary part of his responsibilities.

      What should he do? Increase the duties of all managers to follow around behind each waitperson, making certain they’re providing good service? (And how might he be sure they’d do so?) Or instead establish an incentivization program. You want to be paid well? You can be, but you have to provide excellent service.

      You write about “one of the core ideas of libertarianism.” I like that. But these transactions *do* involve another core idea of libertarianism: contracts. You appear to be writing about a non-explicit contract, and we are in agreement. But does the waitperson have *no* responsibility in it? While it’s true (even here in Mexico) I almost always receive good service–and that truly terrible service is exceedingly rare–what if I don’t?

      In these conversations I’m always fascinated about the missing element: what the tipping arrangement actually IS. A gratuity given for good service. If we are tipping for poor service, in what way are we promoting good service? We’re not; we’re undermining it.

      I see no reason why a restaurant owner can’t choose to pay his waitstaff $20 per hour or more. If it were a great place, I’d go and hope to enjoy. But I’ve spent enough time consulting businesses to admit a hunch: if there is not a direct incentive to delight patrons, over time, eventually service will decline. Not with every waitperson, but with plenty of them. If I were a restaurant owner, I’d consider conducting this experiment.

    • It is not theft because there is no contract. An unwritten contract is not valid. If I am nice to you in hopes of being rewarded (brown-nosing, sucking up, etc.) you have no obligation to reward me.

      You worded it quite clearly. The server GIVES you service. You did not hire them. They gave it to you. Simply because you do not financially reward someone for giving you something is not theft.

      You are incorrect on the minimum wage servers receive. They are guaranteed the federal minimum wage. However, an employer can pay them half the federal minimum wage as long as their pay plus tips is more than minimum wage. If the server did not receive any tip money, the employer would be required to pay them regular minimum wage.

      A tip is a reward for performance over and above what is considered normal. A tip is NOT part of a workers pay. It is a bonus. Workers are not entitled to bonuses simply because they want one.

      When I was in my teens, I worked in gas stations that offered full service. I made just over minimum wage. No one ever tipped me for coming out in nasty weather and pumping their gas and checking their oil and air in their tires and cleaning their windows. It was just an expected part of my job.

      My first real job when I was 16 was a dishwasher at a Ponderosa steakhouse. I worked a lot harder than the servers. I made minimum wage, while they often made $20 or $25 an hour with their tips. (No, they didn’t share their tips with the dishwashers either.) The ugly folks were the cooks and dishwashers. The reasonably attractive girls worked on the buffet line. The really good looking workers got hired as waiters and waitresses.

      Tipping is really just paying someone because they are attractive. It has nothing to do with the work they do. (Why do you tip the person who brings your food, but you don’t tip the person who cooked it or washed your dishes? They all made minimum wage, or slightly more.)

      I went to Ukraine a couple years ago. One restaurant I went to a couple times figured out I was American because I spoke English with my interpreter/guide. The girls would fall over themselves trying to be the one who waited on me. On the bill, the servers would always write in English, “Tips appreciated” with smiley faces. My interpreter said that tips are not normal there and 10% was plenty to leave as a tip. Basically, the servers have learned us rich Americans will leave tips, and since they are so poor, they are always excited to get a little money.

    • If I shovel the snow on your sidewalk, or decide to mow your lawn, but you have not hired me to do that, should I expect to be paid? Or in reality, did I really volunteer in the hopes of getting paid?

      If I take a girl out to a nice dinner and movie, what kind of ‘tip’ should I expect to receive? If I don’t even get a kiss at the end of the night, has the girl stolen from me?

      Just because you want something, or hope for it, doesn’t mean you are entitled to it.

    • @bfarmer Contracts do not have to be in writing. Oral contracts are perfectly valid (in law they are enforceable, but force destroys their beauty) for most transactions, including server services.

    • Yes, oral contracts are just as binding as written ones. However, they must be expressed, and not implied.

      There must be offer and acceptance, and a meeting of the minds in order for a contract to be valid. In the case of a server, they offered their services and the patron accepted, but there was never a meeting of the minds to negotiate a payment. Because of that, a server and a patron do not have a contract. Without a contract, you just have hospitality on the part of the server.

      (If I go to a friend’s house, and they offer to bring me something cold to drink, should I tip them when they bring my drink?)

    • Actually some actions can be “implied contracts” as regular business practice. For example, a supplier that ships a “regular order” repeatedly without the customer repeatedly ordering it.

      (Not that I’m arguing for automatic/mandatory tipping)

    • Yes, but case law has found more than once when you call something a gratuity it is always at the customers’ discretion whether to pay it or not. Courts have found that restaurants that tack on an “automatic gratuity” for large parties cannot successfully sue for nonpayment, whereas if they call it a “service charge”, they can. If there is no stated “service charge” any money a customer pays for a meal above what he is explicitly billed is by convention a “gratuity” and there is no implied contract legally obligating him to pay it.

    • Tipping is a voluntary action which may or may not be expected. It is cool when voluntary arrangements evolve in the marketplace. If tipping is widely accepted, it’s a way for people to reward good service, and protest poor service. No need for state intervention, and it is certainly not an institution based on theft.

      If it is imperfect, improvements will be developed over time. Let freedom reign!

    • This article is predicated on faulty premises and fallacious arguments, including the Marxist labor theory of value. A gratuity is freely given, hence the name. It is not the duty of the customer to see that the restaurant employees get paid a certain amount, it is the duty of their employer. Requiring any gratuity at all, let alone a certain percentage, militates against the plain meaning of the word. Moreover, it encourages mediocrity by providing a guaranteed and unmerited bonus for bad service.

    • A tip is a BONUS, given for GOOD service. It is NOT MEANT to be a significant part of a waitstaff’s salary. Call me old school, but we figure 10% for decent service and 15% for above-average service. I don’t know where this nonsense of 15-20% for servers nowadays–especially when they whine about having to do tasks (like cleaning the bathrooms) that have been part of waitstaff duties for DECADES–and they’re not doing as much work as their predecessors did to get it.

    • @illuminarch Furthermore, it’s a self-resolving “problem”. If people stopped tipping, restaurants would need to pay their wait staff more (or they would lose them). If people increase how much they tip, the restaurants will soon discover that they can pay even less and still be able to recruit staff.

    • A more correct word would be swindling

    • You describe vulgar libertarianism. Many people dismiss libertarianism as virtue signaling to wealthy capitalists (regardless of their rent seeking) and rationalization of free riding, because many libertarians fit the description in reality. Most libertarians fit the description, I’d say, but libertarians are hardly unique in this regard. It’s not libertarian nature per se. It’s human nature. Most Christians are only Christians around noon on Sunday, if ever, and most socialists only want freebies from the state.

      [In the past, socialists wanted fewer freebies from the state, namely the monopoly rents of privileged capitalists. So they said. Workers were supposed to receive the fruits of their labor, not their own share of the state’s largess. In the nineteenth century, libertarians were socialists and said things like, “The natural wage of labor is its product.” This sentiment doesn’t assume state ownership of capital. It assumes Lockean ownership of capital by the laborer.]

      I sympathize with your point, but I feel no obligation to tip at least 15%. I understand the custom in my neck of the woods, and I tip 15% as a rule for acceptable service or 20% for exceptional service, but I’ll also tip 10% for substandard service. I’ve only refused to tip once in recent memory, and I felt justified by extremely poor service.

      I also “libertarian tip”, though I hadn’t seen the name until now. I thought I had invented the practice. When I tip in cash, I sometimes say, “You’ll do me a favor by not reporting it.” I don’t have the balls to evade taxes, a la Thoreau or Karl Hess, but the libertarian tip is a token in their direction.

      This week and next, I’m working in Toronto. Here, tipping seems less common, and service workers presumably receive wages not anticipating tips, as in Europe. I tip by U.S. standards anyway, because I’m on an expense account and can afford to be a “big spender”. On the whole, life would be simpler if service workers received attractive wages without tips or if the implied contract were more explicit.

    • Although I appreciate the situation with people who work for tips (I’ve been there myself), not tipping is NOT theft. When I go to a restaurant, I don’t have an option to be seated without benefit of server. I also don’t usually have the option of picking my own server and establishing a private “contract” between us. As it’s a mandatory “service,” the burden of providing it belongs to the establishment. That service is part of the meal, as is cooking the food, having clean dishes, and chairs to sit in. The issue of wages is between the server and the owner, not me. If I appreciate the quality of service, I may elect to give a token of that appreciation… a tip. I occasionally do this with my mechanic, my letter carrier, fire station, etc. If restaurant servers, either singly or as a group, believe they are paid too little, they should take the matter up with their employers, rather than attempt to put the blame on their customers.

    • I worked in high school and college as a waiter. Started out in a little Mom & Pop Italian restaurant in front of my neighborhood that I could walk to before I had a car, then worked for a couple of the casual dining chains before getting a job at a fine dining restaurant. I, like everyone else I worked with, worked as a waiter because I earned way more than I could have gotten at any other job as a teenager or a college student. Having seen how tough the work can be, for years I tipped 20% post-tax in every restaurant for standard service. A waiter could mess up my order, be totally in the weeds and keep me waiting, spill food on me and still get 20%. The only time a waiter would get less is if they were rude or pompous.

      I’ve stopped the automatic 20% in recent years, and it has nothing to do with making a political statement about taxes or living wages or anything like that. It’s simply because I have seen a rise in a sense of entitlement among young waiters that makes me feel my generosity is not being appreciated, it is coming to be expected. Sure, my fellow waiters and I would complain about certain customers in the kitchen or at the bar after closing, but the tenor of the complaints I see these days in articles, blogs, and social media is entirely different, a strong sense of entitlement, without any appreciation for the fact that as people without college degrees, or with useless liberal arts degrees, they are making way more money waiting tables than they would be making at any other job they are qualified for. I read article after article written by waiters, or where waiters are interviewed, where they proclaim that 20% is the “standard” for average service, and deride patrons who pay any less, while they also deride patrons who ask for substitutions or adjustments to a dish, or who have the audacity to ask waiters for recommendations of what is good.

      This last complaint especially baffles me. When I was a waiter, I made a point to taste as many of the dishes as I could, and even ones I hadn’t tasted, I took note of which dishes customers liked and which they didn’t. Even if the customer didn’t ask for a recommendation, I would sometimes steer them away from a dish I knew wasn’t our best, saying “if you want fish, may I instead suggest…” or something like that. At a Tex-Mex restaurant, there were bison fajitas on the menu, which were more expensive than the regular beef fajitas because they were a novelty, but were also tough and chewy. Whenever a customer ordered the bison fajitas, I would recommend they get the beef instead. Such recommendations usually got me a really nice tip. But now I see waiters mocking customers for asking them to make a recommendation (eg “How am I supposed to know what you like?”). Waiters are demanding that they be tipped more for the service they provide, even as they want to provide less service. This sense of entitlement has turned me off, and I have gone from blanket tips of 20% post-tax for standard service to 15% pretax for standard service, with money on top of that coming only for waiters who are especially good at their job, pleasant, nonobtrusive, and who make good recommendations that aren’t blatant upselling.

      Unless a menu specifically states a “service charge”, not tipping is NOT theft. And the verbiage used in the menu is important, as case law has found “automatic gratuity” or any other phrase that uses the term “gratuity” implies the charge is optional. Customers only have a legal obligation to the owner of the restaurant, to pay the posted prices. What the waiter gets paid for his work is a legal obligation only between him/her and his/her employer. You can argue all you want about “moral obligations”, but 1. “theft” is a specific legal term, and 2.) one could counter the “moral duty to tip” with an argument that by continuing to pay tips, customers are helping perpetuate a system whereby restaurant owners are the only employers who get out of having to pay their employees a decent base wage. And I myself feel responsible that my years of automatic post-tax 20% tipping contributed to the unhealthy sense of entitlement of waiters. I’m not ready to go down below 15% yet, but a few more articles about how waiters “deserve” tips, a few more articles like this one which attempt to shame people for questioning the automatic gratuity system, that posit absurd claims that the waiter is directly working for the customer, and I might eventually stop tipping altogether. The sense of entitlement over tipping is alienating people away from wanting to be generous.

      I also think the lack of transparency in pricing in this country, the sly little shell games played with prices, contributes at least a marginal part of resistance to tipping. Pro-tipping advocates love to say “if you can’t afford to tip, don’t eat out.” I’ve traveled extensively throughout Europe and Japan. The prices are usually a nice round number and always include tax, and service is included, so if I sit down at a restaurant and order an 18 euro entree, and a 2 euro dessert, a 5 euro glass of wine, I know without a doubt the 20 euro note in my pocket is going to cover my cost without having to do any math in my head. And then the 2 euro coin I might happen to have in my pocket that I leave on top of that will be appreciated, not expected. But here in the US it’s $17.99 for an entree, $1.99 for a glass of iced tea, and on top of that add 8.25% for tax, and an expected 18% gratuity, and suddenly that $20 and $5 you have in your pocket aren’t enough to cover a meal with an advertised price of under $20. People who come into a meal with a round idea in their heads of what it is going to cost based on what the menu prices are and then see a bill over that mentally budgeted amount due to the tacked on fees are going to be tempted to scrimp the only place they can to get it closer to their expectation, and that is in how much they tip – even when using credit cards. And don’t try to put the blame all on the customer for underestimating. The “$**.99” price is a timeworn consumer psychology strategy to lull consumers into perceiving an item is cheaper than it really is, if restaurant owners didn’t know this and try to exploit it, they would simply price stuff at $20 even instead of “$19.99” to play that 1 cent shell game, so they can’t blame customers for doing the very bill underestimating they are trying to encourage. Pricing menus in round numbers, with tax included (like every other country does), would actually do a lot to simplify billing and customers’ expectations of what the bill will be, and would result in less uncertainty about tipping.

  • Former WWE superstar Glenn Jacobs tells Matt Kibbe about the moment he first discovered ideas of liberty among his fellow wrestlers. …The post WWE’s Kane on His Discovery of Austrian Economics appeared first on [Read story]

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