In the 1920s, Prohibition helped cement tipping norms in the US

How the federal income tax affected Prohibition

In the early 1900s, 30% to 40% of government tax revenue came from liquor, wine, and beer, a reliance that made Prohibition seem like a fiscal impossibility. But the passage of the federal income tax in 1913 changed the calculus, which helped allow the government to ban alcohol production and sales.

19th-century Americans discovered tipping in Europe

Tipping waiters was a custom in medieval Europe, where masters gave their serfs money for exceptional work. Wealthy Americans vacationing in Europe in the mid-1800s discovered the behavior and brought it back to the US.

72% of Americans say tipping is now expected in more places than it was 5 years ago

This change has been driven by multiple factors, including point-of-sale systems from fintech companies such as Square that prompt customers for tips directly. Americans also increased tipping during the pandemic in an effort to support local businesses struggling financially due to a lack of physical foot traffic.

During Prohibition, 'happy hour' became the go-to term for illegally having a drink after work before heading to dinner

This article provides a timeline of happy hour’s shifting shape in US culture, from the first recorded happy hour on a US Naval ship to today’s happy hours that sometimes include non-alcoholic beverages. It also details how prohibition actually helped establish the tie between alcoholic beverages and happy hour.

Nearly 9 in 10 Americans were annoyed by tipping as of 2025

That’s a sharp increase from the 75% who thought tipping culture had gone too far in 2024. One potential culprit? The proliferation of tipping screens in places outside sit-down restaurants, such as coffee shops and hair salon. Three in 10 Americans say they give less when presented with tipping screens.

After emancipation, many slaves went from working for free to working for tips.

Americans spend an average of nearly $500 per year on tipping at restaurants and bars

The habit runs contrary to economic rationality: Why pay more for a good or service you have already received when it isn’t mandatory? Researchers found that people tip, in part, to avoid the psychological pain of not fitting in.

The federal government allowed toxic chemicals into alcohol during Prohibition

Industrial alcohol was still legal during Prohibition, and was often used by bootleggers. In an attempt to disrupt the black market, the government required toxic additives to be included in industrial alcohol, leading to more than one death.

How Prohibition changed beer

This historical survey from The Beer Connoisseur explores the breweries that survived the government's ban on alcohol production. The common denominator? They all pivoted their business models.

How tax laws helped the federal government catch mob bosses during Prohibition

The IRS arrested top mob bosses during Prohibition after the Supreme Court ruled illegally-made income could be taxed. The IRS's biggest catch was Al Capone, who was charged with tax evasion and sentenced to 11 years in prison. But Capone wasn't the only bootlegger the IRS nabbed for tax evasion during this era.

George Pullman popularized tipping in the US with his Pullman sleeping car business

By 1868, Pullman, who operated luxury sleeping cars on the country’s growing network of railways, had started hiring formerly enslaved Black men as porters for extremely meager wages, working long hours in poor conditions. He encouraged wealthy passengers to tip them, helping institutionalize tipping in the US.

Visualize tipping norms around the world with this map that reveals the US tips more service providers and leaves larger amounts than anywhere else globally.

Fintech companies made it easier for merchants to request tips, leading to fatigue

In recent years, companies such as Square and Toast have created touch screen technologies prompting customers at coffee shops and casual restaurants to tip upwards of 25%. Despite the interesting psychological conundrum this presents to consumers, one tech columnist argues that shoppers don't need to succumb to the pressure.

US tipped employees receive the 'subminimum wage' of $2.13, unchanged since 1991

Tipped employees (anyone who makes $30+ per month in tips) are not federally entitled to a traditional minimum wage. Customers determine their earnings. The National Restaurant Association believes that if restaurant owners are forced to pay above the subminimum wage for tipped workers, restaurants could be forced to close.

The Fair Labor Standards Act established a minimum wage—but it didn't cover everyone

A 1966 amendment created the “tip credit,” which allowed restaurants to pay below minimum wage if tips compensated the difference. However, this federal tipped minimum wage has remained frozen at $2.13 per hour since 1991, whereas the regular minimum wage has increased multiple times since then.

America's ice cream obsession began under Prohibition, with the street treat acting as a legal vice that helped ease the pain of the Great Depression.

Explore why Americans are drinking less alcohol

US alcohol consumption fell 5% in 2025, with beer and wine leading the decline. Economists point to tighter budgets and less face-to-face socializing overall, while younger Americans are increasingly choosing not to drink.

Some US states are now revising their happy hour bans

While states like Massachusetts started banning happy hour in the 1980s as an anti-overconsumption measure, not every state has kept these bans intact. This article dives into the arguments for and against revising the happy hour ban in Massachusetts, the first state to institute such a ban.

Women tend to tip more often than men

For instance, among people who visit hair salons or barber shops, 62% of female respondents said they always tipped. Only 45% of men said the same. This article includes more takeaways and stats about how Americans tip, and who receives them.

Tipped workers in ‘$2.13 states’ experience an estimated 18.5% poverty rates

In so-called “equal treatment states,” where tipped workers are subject to the normal federal minimum wage or higher rather than the tipped minimum wage, the poverty rate is 11.1%.

The 21st Amendment was the only amendment to repeal another

The 1933 constitutional amendment rolled back 1920's 18th Amendment, better known as Prohibition, which outlawed "the manufacture, sale or transportation of intoxicating liquors."

Illinois rolled back its happy hour legislation in 2015, opting to cap reduced-price drink sales at 15 hours per week and prohibit them after 10 pm instead

In this episode of the podcast "The Right to Drink," alcohol expert and host Jarrett Dieterle explains why some states allow happy hour while others don't. The host also dives into the fight to change happy hour legislation across the US.

The US restaurant industry generates over $1T in sales

In 2024, the industry brought in $1.1T, and the National Restaurant Association anticipated reaching $1.5T in 2025, numbers that are considered a return to normal after the tumultuous years of the COVID-19 pandemic. The industry also employs a large workforce, with over 13 million employees. (Some readers may experience a paywall.)

Jimmy Carter signed a 1978 bill that legalized home brewing, a move credited with kick-starting the craft beer industry.

Happy hour is banned in Ireland

For a country famous for drinking a lot of alcohol, it might seem surprising that happy hours are banned in Ireland. But that reputation is exactly why the country banned happy hours in the first place—a 2010 report found that alcohol use in Ireland had doubled between the 1970s and the early 2000s. Read this article to learn more.

Despite originating in America, happy hour isn't allowed in every state.

In the 1960s, eateries started using discounted drinks (and sometimes food) as a marketing tactic to make money during off-peak hours

Today, we know happy hours as a time where bars and restaurants offer discounted alcoholic beverages (and sometimes even food or non-alcoholic drinks) in order to attract customers during off-peak hours. But originally, the term “happy hour” didn’t involve alcohol at all.

A group of daring bootleggers created NASCAR

When Prohibition made alcohol illegal in 1920, it didn’t stop Americans from making and consuming it. The law drove the practice underground. Runners risked their lives to deliver moonshine and began racing among themselves.

Anheuser-Busch sold half of its real estate holdings to survive Prohibition

The Budweiser parent company also created and sold out more than 25 different nonalcoholic products during this time, including but not limited to infant formula, frozen eggs, and specialized coffees and teas.

Total per capita US consumption of beer has dropped 30% since the 1980s

Between 2011 and 2021, AB InBev and MolsonCoors (two of the leading beer parent companies in the US) experienced a combined 17% drop in US market share. Budweiser parent company AB InBev has focused on premiumization and diversifying their product offerings in recent years to combat the losses.

Massachusetts banned happy hour in 1984 during a surge in advocacy around preventing drunk driving

Massachusetts was the first US state to ban happy hours. The ban, which prohibits selling discounted drinks during designated times, occurred after a 20-year-old woman died in a drunken driving accident in Braintree, Massachusetts.

The temperance movement loathed toasting

The 19th- and 20th-century groups opposed to drinking alcohol viewed toasting as a vile practice that encouraged excess and debauchery. One reverend wrote in 1881 that "toasting is a relic of the vile custom of drinking to the honour, applause and commemoration of depraved men and women, whose persons should have been despised, and whose memories should be perished."

Advocate estimate roughly 27% of Black service workers live below the poverty line

That’s significantly higher than the rate for restaurant workers overall. Approximately 37% of tipped workers are mothers, nearly half being single moms struggling with income volatility. This article includes more statistics about what the average tipped worker looks like and offers a peek inside their lives.

Delivery apps have realigned the restaurant industry

As delivery apps like Grubhub and DoorDash became popularity, traditional dine-in restaurants have adapted to become more accommodating. In this thinkpiece for the Atlantic, Ellen Cushing argues that it's both changed the kind of food being made and realigned our very notion of a restaurant. (Some readers may experience a paywall.)

Years before the 1969 Stonewall Uprising, patrons at another New York bar staged a protest against an antigay liquor law.

Restaurants are where most of us contract food poisoning in the US.

Stand-up became more popular during the Great Depression

The stock market crash of 1929 caused vaudeville theaters to shutter. Audiences were looking for lighthearted distractions from the country’s financial problems, though, and stand-up became more popular, albeit in very different venues.

In 1639, Puritans in the Massachusetts Bay Colony banned toasting

Like the Anglo-Saxons and the ancient Greeks before them, the American colonists tended to party when they got to toasting. That led to a 1639 law banning the practice, which they viewed as excessive and superstitious. Alcohol remained legal, but the hope was that banning toasting might reduce excessive drinking.

Why the craft beer industry is in decline

The trend began in 2024, when more craft breweries closed than opened, and has continued since then. Some blame the rise of canned cocktails, hard seltzers, and non-alcoholic beers, while others point to declining drinking rates for Gen Z.

Many states require higher direct wage amounts for tipped employees than the federal requirement

Employers of "tipped employees" are required to pay them $2.13 per hour in direct wages if that amount, combined with the tips, at least equals the federal minimum wage of $7.25. If the employee's tips combined with the employer's direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer has to make up the difference. However, this differs from state to state. This interactive map shows what tipped workers make per hour in every state.

The US developed a coin circulation problem in 2020

As people reduced the frequency with which they paid for things in cash and change during the COVID-19 pandemic, opting for tap-to-pay systems or online shopping instead, the number of coins in circulation decreased. Those who did make cash purchases were more likely to keep their change at home rather than use it on a subsequent purchase.

Al Capone's business structure kept him from ever getting charged for bootlegging.

Nevada legalized gambling in 1931

Las Vegas was originally a quiet town, but the legalization of gambling (along with relatively lax divorce laws) turned it into a Prohibition-era destination.

During Prohibition, Pabst Brewing Company switched from brewing its Blue Ribbon beer to making cheese.

Tariffs once fueled the US economy, historically serving as a primary source of revenue and a means to protect domestic industries.

Only 28% of Americans think restaurant prices are fair

Seven in 10 Americans dine out at least once a month, but only 28% of diners think menu prices are fair, a 2025 YouGov survey found. That changes only slightly by income, with 44% of higher-income Americans finding the prices fair.

The American diner evolved from a 'lunch wagon' into a restaurant

Providence, Rhode Island's Walter Scott began serving homemade dishes from a freight wagon to late-night workers, who were looking for meals long after proper restaurants had closed for the night. Scott quickly inspired dozens of copycats, crowding the streets and leading to complaints. Soon, Scott and his imitators parked their carts, which became the earliest American diners.

One of the driving forces behind an increase in pay transparency laws is their ability to help close the gender pay gap.

Since 2018, pay transparency laws have been enacted in more than a few states and cities across the US. But what's driving the trend, from a legal perspective? This law review article attempts to answer that question, citing factors such as the Great Recession and the gender pay gap—click here to learn more.

A Portland dive bar helped drive Pabst Blue Ribbon's early 2000s comeback by selling cans for $1 apiece.

How America became a nation of gamblers

For thousands of years, humans have liked to gamble. What started as dice games and betting on chariot races became a way for states to generate revenue here in America. This article explores how states have been using gambling to pay for infrastructure and capital projects–and the cost it’s had on the citizens.