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[B] CNBC: Why Tipping Is So Out of Control In The U.S

LET'S UNLOCK WORDS AND PHRASES 🔐

forestall

[ fohr-'stawl ]

verb

- to prevent something from happening by acting first

She hurried to finish her work to forestall any potential delays.

manifest

[ 'man-uh-fest ]

verb

- to show something clearly, through signs or actions

The company's success was manifested in its rising profits.

bribe

[ brahyb ]

noun

- to try to make someone do something for you by giving them money, presents, or something else that they want

The politician was accused of attempting to bribe the jury during the trial.

presumably

[ pri-'zoo-muh-blee ]

adverb

- used to say what you think is the likely situation

The train was delayed, presumably due to the bad weather.

federal

[ 'fed-er-uhl ]

adjective

- relating to the central government, and not to the government of a region, of some countries such as the U.S

The federal government announced new regulations to address environmental concerns.

LET'S TAKE A LOOK! [ FULL CLIP ]

What is the video all about? Choose two statements that refer to the main ideas of the video.


1. The origins of tipping date back to ancient times, possibly emerging from customs related to colonization and trade.

2. Tipping culture has evolved over the decades, with people now commonly tipping anywhere from 15% to 25%, according to a 2022 survey.

3. The practice of tipping has expanded beyond traditional service industries to include various transactions and services, leading to increased pressure on consumers to tip.

4. In Europe, tipping culture has also seen a surge, replacing service charges with tipping at the beginning of the coronavirus pandemic.

LET'S TRY IT! - FIRST CUT

A. Script Completion

Direction: Watch the first cut of the video and complete the following lines below with the missing words. Write or type down your answers while listening.

⏱ 00:47 - 01:40

While the percentage that consumer are tipping at (1) in the past couple of years has remained about the same, in the fourth quarter of 22, the number of tips provided at full service restaurants grew 17%. Meanwhile, the tip frequency at quick service restaurants such as coffee shops and fast food chains rose 16% during the same time period. "What we're seeing now (2) is something that is known as tipflation. At every opportunity, were being presented with a tablet that's asking us how much we'd like to tip." In many cases, not only replacing the (3) that you could feel good about throwing some (4) into, but actually suggesting tip amounts, often right in front of the employee receiving the tip, not to mention also your dinner date, and the (5) standing behind you in line. And it's (6) gone beyond just the tablets.

LET'S PRACTICE - SECOND CUT

A. Script Completion

Direction: Watch the second cut of the video and complete the following lines below with the missing phrases.

⏱ 01:40 - 04:05

The other day I was using the Hopper app to book a hotel, and it wasn't until I confirmed my payment that I realized my hotel was $10 more expensive. It turns out, Hopper assumed I wanted to add a tip and I had to go back to a prior page in order to (1) . Tipflation refers to not just that we're tipping more, but we're tipping everyone for everything. "Youre being (2) that is technically a service. Someone simply doing their job. In those situations, consumers are feeling resentful. Where do you draw the line? Tip stands for (3) " ." Tipping may go back as fas as the Roman era, but according to most experts, the practice likely has its origins in medieval era. "Noblemen taking passage on roads would (4) to ensure safe passage. One theory is that it evolved in eating and drinking establishments as way to (5) that when you're eating and drinking, you're having fun and the people who are serving you are not." Fast forward to the 19th century when waiters who received a full wage went on strike demanding higher wages. They were replaced with women who employers could pay less. A decade later, there was the population of (6) . The idea from these restaurant owners was that they were given the luxury or privilege of a white person's tips. That was without a full wage. "Ironically, as tipping exploded in the United States it became less common in Europe and was replaced with (7) ." While the first federal mininum wage law was passed in 1938, it wasn't until almost three decades later when the (8) was established. In 1991, the federal minimum wage for tipped employees was set at $2.13, which is what it remains at as of March 2023. "As far as I know, the United Stated is the only country that (9) tipped workers from having to receive the full minimum wage. In 43 states, it is legal to pay tipped workers less than the standard minimum wage because tips (10) make up that difference.

LET'S DO THE CHALLENGE - FULL CLIP

Direction: Answer the following questions by giving your opinion.


  1. How has tipping culture changed over the decades, as mentioned in the video?

  2. What is "tipflation" as mentioned in the video, and how does it manifest in modern society?

  3. What historical events contributed to the emergence of tipping culture in the United States, as mentioned in the video?

  4. How did the COVID-19 pandemic impact tipping behavior?

  5. Why do some consumers feel pressured to tip more, according to the video transcript?