Why does the tablet spin at the coffee counter feel so awkward? This episode traces tipping from 17th century thieves’ cant and the ‘drink money’ customs of European aristocracy to the American service industry and the modern phenomenon of tipflation.

We explore how wealthy Americans imported tipping in the 1850s and 60s, why six states once banned it, how post-Civil War employers and Prohibition cemented it into wage structures, and what economics and research reveal about who really benefits from the tip.

• How the word tip emerged from 17th century criminal slang and why many languages call it drink money
• Why tipping was once seen as anti-democratic in America and banned in six states between 1909 and 1926
• How employers used tipping to cut labor costs, leading to the $2.13 federal tipped cash wage
• The principal agent problem, risk sharing, and Michael Lynn’s five motivations for tipping
• Bias in tip amounts, the UK tronc system, automatic service charges, and digital tipflation screens