[Post 233] Why Tipping Is So Out Of Control In The U.S.

Summary

Tipping in the United States is on the rise and experts are calling it tipflation. In the fourth quarter of 2022, the number of tips provided at full-service restaurants grew by 17% from the fourth quarter of 2021. Meanwhile the tip frequency at quick-service restaurants rose 16% during the same time period. 

Experts say that's because of the newer and sleeker-looking Point-of-Sale, or POS, systems by tech companies like Square, Toast and Clover, who also have increased their sales as a result. The pressure to tip well in front of the tip receiver, before a service is completed, or in front of other customers makes a difference for many. After customers swipe their credit card, they're typically prompted with three large tipping options on a screen. While businesses can opt out of the tipping feature, most aren't. In fact, even Starbucks started prompting customers for tips in stores in September 2022. With Americans being pressured to tip higher percentages and for more services, the question is, where is the tipping point?

[Post 233] Apple vs. Banks: The Digital-Wallet War, Explained | WSJ

Summary

Digital wallets like Apple Pay are continuing to grow in popularity. Banks are worried they’re losing ground to tech companies eager to gain market share in consumer payments.

One of traditional finance’s biggest threats is Apple. Here’s how big banks are fighting back.

[Post 232] How a Traded-In Apple iPhone Gets Refurbished | WSJ

Summary

So you just traded in your used Apple iPhone 11 at your wireless carrier to get a deal on a brand new iPhone 14. Where does that old phone go? How do companies make money on it?

WSJ’s Joanna Stern heads to a U.S. Mobile Phones facility in New Jersey following an iPhone 11 through the refurbished process to explain how the second-hand phone market is a booming business

[Post 231] Young people living a lavish lifestyle on credit card debt | 60 Minutes Australia

Summary

Back in 2008, the global economy was in meltdown and the financial markets were in chaos. Basically, greed, dodgy loans and bad debt were to blame. So you'd think people were a bit cautious with their credit cards. Some may be, but not the kids they call Generation Y. 

They're young, reckless, and they've racked up an astonishing $60 billion of debt. New cars, new clothes, new toys, no problem. Just whack it on the card. These kids had never known tough economic times, so they think they were invincible but they're in for the shock of their lives. 

[Post 230] Why This Sign Is in Front of Banks | WSJ

Summary

The Federal Deposit Insurance Corporation was created from the Banking Act of 1933 to prevent the bank runs seen during the Great Depression. With Silicon Valley and Signature Banks, the FDIC is doing what it was designed to do—cover insured deposits.

But it’s taken its promise even further, saying it will protect even the uninsured. Here’s how the FDIC works. 

[Post 229] Working As A Food Delivery Rider: Are We Paid Enough? | Talking Point | Full Episode

Summary

In part two, host Steven Chia puts his pedal to the metal and becomes a food delivery rider. He finds out how dependent riders’ earnings are on platform algorithms and how certain incentives can make or break their daily income. He also investigates if their earnings that riders make is enough to last them through retirement and what more can be done for this group, besides the current protection measures out there.

[Post 227] Food Delivery Hustle: Is It That Lucrative? How Much Can You Make? | Talking Point | Full Episode

Summary

Flexible working hours, cash in hand and no qualifications needed – that’s what we see when we think about food delivery jobs. But is there more to it? The first of a four part series looks at the daily realities of everyday Singaporeans. Host Steven Chia finds out first-hand what it is like to be a delivery rider and if the algorithms of online platforms work against riders’ earnings. He also finds out what the consequences are of staying in this job for the long term.