[mjevans]

1) I want all restaurant workers to just get a fair proper wage...

2) So that tipping is no longer subsidizing the restaurant owners.

3) Also, FFS, when demand is inelastic, the only way to lower prices is MORE SUPPLY (where it's needed). Build the housing, do not stop, just keep going until after we all die.

[amrocha]

Restaurant workers already get a fair wage. At minimum they make minimum wage. If you don’t think the minimum wage is fair then fight to raise it. Otherwise you’re gonna have to start tipping at a lot more places than just restaurants.

[n4r9]

There are many states where the minimum wage for restaurant workers is $2.13: https://www.dol.gov/agencies/whd/state/minimum-wage/tipped

[amrocha]

If workers make less than minimum wage from tips, then the employer needs to make up that difference.

[TipsForCanoes]

I think this could be solved with two small legal changes.

1. Abolish lower minimum wages for so called "tipped" workers and raise it to a fair value.

2. Make it illegal for any business to solicit tips.

If a customer wishes to tip then they certainly can but no business should be allowed to pressure you (and just asking is pressure) into paying more than the price they are listing for an item.

[scotty79]

> Build the housing, do not stop, just keep going until after we all die.

China did exactly that. And ended up with 3 apartments per each citizen. Most of them perpetually empty because real estate is still expensive there.

[tptacek]

Tipping doesn't subsidize the restaurant owners.

[n4r9]

I'm guessing they mean that without tipping, more of the restaurant's revenue would go towards wages.

[abdullahkhalids]

Which is likely incorrect. Suppose currently a meal costs 20, and the average tip is 15%, so that the customer pays 23. This means that the restaurant knows that customer is willing to pay 23 for a meal.

Now, get rid of tipping. The restaurant will raise prices to 23 per meal. And instead of that 3 ending up in the waiter's pockets it will instead be split between the owner and the waiter. Most likely, the worker's wages will be likely suppressed down to minimum wage and the owner will get whatever remains of the 3.

You will need to do more interventions beyond removing tipping to ensure waiters get more than minimum wage.

[n4r9]

In most states, the minimum wage for tipped workers is significantly less than the minimum wage otherwise: https://www.dol.gov/agencies/whd/state/minimum-wage/tipped

If we assume that the restaurant owner pays the minimum possible wage out of the revenue, then the claim is correct.

[tptacek]

Sure, but the prices would also be commensurately higher.

[xoa]

>but the prices would also be commensurately higher.

No, the prices would be more transparent, not higher. You've made clear in other comments ITT that you believe tipping to be mandatory ("If you don't want to tip, don't dine at full-service restaurants in America"), which means you consider prices 15% or more higher then sticker price to already be the rule. Requiring that to be part of the advertised price instead of hidden is purely good for free market efficiency. Anything that isn't fully optional should be part of the advertised price. The employers and employees have superior information for correct decisions, and once a transaction (dining) has already been committed to a superior position of power as well.

[tptacek]

I mean, you can not tip. It's contemptible behavior in the US, but you can do it.

[tossandthrow]

Thisnis one of these counter arguments you often hear in favor of low wages in general.

And it is a horrendous argument.

You are literally actively arguing for greater inequality.

If a company can not cover their costs with their revenue, then they need to cease to exists.

And ofcause they need to pay fair market wages.

[n4r9]

Does that make it not a subsidy? We say that the US govt subsidises oil companies even though petrol prices would be higher if they stopped.

[10000truths]

The consumer already paying the "higher price" through tips. I much prefer transparent pricing with no hidden expectations or fees.

[samastur]

They already are, it's just expected you calculate yourself the real price.