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by Trezoid 4667 days ago
> In a tipless society, your entree would just cost more

I live in a tipless society. Things cost exactly the same here (in Australia) as they do in the US. Difference is we don't have to pay extra on top of the meal.

We also get paid far far more. Minimum wage over here, in fast food, is $20 an hour.

1 comments

> Things cost exactly the same here (in Australia) as they do in the US

That's not true. The cost of living in Australia is considerably higher than in the US. Melbourne and Sydney are both in The Economist's Worldwide Cost of Living top 10 (no US city is)[1].

Looking at food specifically, in 2011 one litre of milk was on average $2.21 USD in Australia, and a 1kg loaf of bread $5.24 USD.[2] In the US they were $1.80 and $2.80[3]. Half the price.

> Minimum wage over here, in fast food, is $20 an hour.

It's actually around $15 per hour. It varies a little with age[4][5]. Still quite high though. I'm not saying food prices necessarily directly connected with the minimum wage, just refuting the idea that in Australia food is the same price as the US. It simply isn't!

[1]:http://www.cfoinnovation.com/system/files/worldwide%20cost%2... [2]:http://www.liveinvictoria.vic.gov.au/living-in-victoria/cost... [3]:http://data.bls.gov/cgi-bin/surveymost?ap [4]:http://www.theatlantic.com/business/archive/2013/08/the-magi... [5]:https://www.fairwork.gov.au/pay/national-minimum-wage/pages/...

Service sector workers are most likely casual (ie not permanent part or full time) and thus their minimum wage is AUD$20.30/hr [1]

Tipping the scales further against America is that they are also fully covered by the national health insurance system, Medicare.

That said, it's hard to directly compare Australia and the USA - there's just too many variables. You are correct in that food is a little cheaper in the States; not 50% but probably 30% cheaper on average, from experience. Rent, too, is higher in Australia.

All things considered, though, I think it's pretty inarguable that a service sector worker is going to have a higher income and better quality of life in Australia. That's a consequence of deliberate economic policy. It's not without its negatives, of course - service hours in Australia are much less than in the USA, and certainly a factor in that is the higher cost of staff. For example, there is not a single 24-hour supermarket in Sydney!

[1] https://www.fairwork.gov.au/pay/national-minimum-wage/pages/...