This does not hold true in any economics ecosystem I can think of. It might be highly infrequent or frowned upon.. but there will still be occasions where someone earning a decent wage also gets little extra.. tickets to game, dinner, or outright cash. Think of bonuses as tips too. There can definitely be businesses where management doesn't allow people on the clock to accept gratuities.. but there will still be other situations and business interactions where people earing a living wage receive a little extra here and there... from customers. it just isn't the norm.. Even happens in Japan..
I agree. It's very hard to simplify economic theory or hypothesis because the economic system is a complex beast. People just say ceteris paribus, all other things being equal, as a way of simplifying explanations in a complex system where an outcome can affect an outcome can affect outcome etc.
My ceteris paribus statement is saying "it's a zero sum game between a tipping society and a meritocratic society".
In truth, it's a spectrum, not a zero sum game. Wikipedia has a good graphic to summarise it
How one goes from meritocratic, non-tipping society to tipping society is good to think about.
The US is the outlier here. If I have to guess, the US started out as meritocratic, non-tipping society. Somewhere along the way, maybe during the roaring 20's or post-war period, people had more money to splash around and gave them away to waiters and waitresses. You can go to post
#69 to see how this morphed into a tipping society.
For a meritocratic, non-tipping society like Australia, I think it's pertinent that consumers STOP tipping for these reasons:
1. It's not meritocratic. In a ski resort, tipping an instructor doesn't recognise the hard work of the groomers who worked from midnight. It doesn't recognise the hard work of the gate attendants who are freezing their ass off. Arguably, the work of the instructor is "easier" than the groomer or gate attendant. They get to ski after all!
2. The same can be said in a restaurant setting. The cooks are working in a high-pressure environment getting stressed by the head chef in a hot and sweaty kitchen. The dishwasher is drenched and wet over the course of an 8-hour shift. The waiters and waitresses get it easy compared to them.
3. Your normal consumer doesn't see the hard work of #1 and #2. All they see are front-facing workers like the waiters and ski instructors.
4. If Australians starts tipping #3, it will build resentment from #1 and #2. Why should #3 get more money when their work is "easier"?
5. If the tipping keeps up and money keeps rolling in for #3, the free economy will morph from meritocratic, non-tipping to tipping society as explained in
#69. The US is the prime example of this. It might have taken 50-100 years, but it will happen eventually.
6. Tipping is sub-optimal for the consumer anyway. We pay more money than what's needed and calculating the gratuity in your head everytime is annoying than just paying the prices up front from the menu or price list.