The US is different, but I’d think that not by much. The same factors are at play. The thing is that we don’t have indulge in theoretical analysis.

We can simply look at how it works in other places in the world. I can surely agree that restaurant business in Europe is not an easy one. However it does work. The prices of restaurant meals are lower than in US even before that awkward tip thing that you tax your customers with. Are the raw products cheaper in Europe? I guess not.

I think you have taken the perspective of the restaurant owner. And yes, it’s better for him to be able to pay less for the work force.

However it’s worse for employees and it’s worse for customers. I’d rather go with that.

Interesting approach.

If I understand correctly, your arguments for the tipping are

1. Income tax relief for the young
2. Progressive meal prices depending on the income.

As for 1. - there are better ways of doing that. Like in my country people under 26 don't pay income tax at all. None of them, why should we cherry pick waiters only? I don't agree with this argument.

2. I guess this is somewhat self-regulated. the poorer you are, the less fancy restaurants you choose and the more you cook your food yourself.

Also with 10-20% tip your burger now costs 12$, not 20$ and you know the price you're paying. No hidden cost.

I don't get why the waiters would get less in that case. Restaurants need waiters more then young people need restaurants as their employers. If the restaurant doesn't pay enough, they'll find other jobs.

Why shouldn’t it be regulated just like any other job? I mean I don’t get tipped, but work well.

Me too. I blame American pop culture. Tipping is ridiculous if you think about it.