Finance & economics | Free exchange

Is America approaching peak tip?

The country’s gratuity madness may soon calm, so long as Donald Trump does not get his way

A chest half open with jewellery and labelled 'Tips'.
Illustration: Álvaro Bernis

Things are big in America. That is true of houses, cars and food portions. Perhaps most shocking of all is the size of tips. In much of the rest of the world, gratuities are a small gesture for good service. In American restaurants they are de rigueur. And they are becoming more generous and more common. For workers who already get them, tips are growing; for those who do not get them, tips may be coming their way. But this cannot go on for ever. Look closer at the tipflation gripping America and a surprising conclusion emerges: the country may be approaching peak tip.

Explore more

This article appeared in the Finance & economics section of the print edition under the headline “Tipped over the edge”

From the June 22nd 2024 edition

Discover stories from this section and more in the list of contents

Explore the edition

More from Finance & economics

Solar panels installed on the roof of a building at Skardu in Pakistan's Gilgit-Baltistan region.

Cheap solar power is sending electrical grids into a death spiral

Pakistan and South Africa provide a warning for other countries

People walk at Zaryadye park with the Kremlin and St. Basil's Cathedral in the background in Moscow, Russia.

Russian inflation is too high. Does that matter?

In a strong economy, price pressure can endure for a long time


illustration of a house cut in half diagonally, the lower corner being a bill.

Why you should repay your mortgage early

For the first time in decades, the arithmetic suggests settling housing loans


How AI will divide the best from the rest

Optimists hope the technology will be a great equaliser. Instead, it looks likely to widen social divides

The danger of relying on OpenAI’s Deep Research

Economists are in raptures, but they should be careful

Elon Musk is failing to cut American spending

DOGE has so far disrupted everything in government bar the deficit