ECONOMIC WASTE
The question then recurs, is this gift to the waiter a sound economic transaction? Economists teach that no transaction is industrially sound which does not involve an equal exchange of values. The exchange of five dollars for a pair of shoes is a sound transaction because the dealer and the customer each receive a value. But the gift of a quarter to a waiter as a tip is an unsound transaction because the patron receives nothing in return—nothing of like substantiality.
The patron may justify the gift from sentimental considerations, of pride, generosity or fear of violating a social convention, but no sophistry of reasoning can prove that a substantial value has been received.
Of course, a waiter may give a patron more than the proprietor agrees to give in the bill of fare, and this undoubtedly is an extra service—but it is also a dishonest service. Every extra service to one patron means a deficiency of service to other patrons. It is a common experience that liberal tipping obtains special attentions which non-tipping patrons miss, but, being dishonest, such a condition is outside the scope of this inquiry. When a patron pays for food he is entitled to adequate and equal service, and no largess by other patrons should interfere with this basic right.
On its economic side, then, tipping is wrong. Wealth is exchanged without both parties to the transaction receiving fair values. The psychology and ethics of the transaction will be considered in other chapters.