Home
/
RELIGION & LIBERTY ONLINE
/
How the $15 minimum wage is pushing New York’s car washers to the margins
How the $15 minimum wage is pushing New York’s car washers to the margins
Mar 30, 2026 12:34 AM

As protests for a $15-per-hour minimum wage continue torage across the country, cities likeSeattleand Minneapolis and states likeCaliforniaandNew Yorkhave begun to adopt such schemes, leading to a range of unfortunate case studies in economic destruction.

Despite the popular narrative that such laws will benefit the most vulnerable and put the powerful in check, the negative consequences have tended to be most severe for small businesses and low-skilled workers.

Take New York City’s car wash industry, a sector known for its low wages and poor working conditions. In an effort to improve the situation, unions and politicians have spent the last decade trying to fix prices and pressure shops toward unionization.

The result: a flurry of closed businesses, a spike in car-wash automation, decreased consumer options, and a black market in by-hand car washing services.

In an in-depth profile from Reason Magazine, Jim Epstein provides prehensive look at the situation, highlighting the painful ironies of progressive efforts to help the marginalized through price manipulation.

Read the full story and watch Reason TV’s mini-documentarybelow:

The story begins with a failed attempt at unionization. “After six years, organizers have unionized 11 businesses, or about four percent of the city’s registered car washes,” Epstein explains. “Two of them have since closed down, and the union withdrew three more because of a lack of support from the workers. There are just six unionized shops remaining, or about two percent of the city’s registered car washes.”

The reason for the lack of traction? Workers seem to be largely content with their situation and struggle to see the value of the union’s efforts to protect them.

“Protection from whom?” asks Ervin Par, a car washer, who immigrated from Guatemala and works at one of the city’s few unionized shops. “If I don’t like working here, I’ll go find a job at a different place. There are many places to work where the pay the same. They don’t pay more. They pay the same.”

Yet when the union’s efforts to champion the $15 minimum wage succeeded, local businesses started adapting—either closing their doors or laying off workers and pushing toward automation. A snippet from Epstein:

Car wash owners are choosing to automate even though it entails substantial risk. Take Best Auto Spa, located at 810 Pennsylvania Avenue in Brooklyn. Known as one of the city’s premier handwashes, it draws clients who care deeply about the appearance of their cars and are willing to pay more for the human touch.

The $15 minimum wage means that this business model is no longer viable. So the owner of Best Auto Spa, who asked not to be named because he’s worried about the political repercussions, is transforming his business from the equivalent of an artisanal bistro to just another fast food joint. Two years ago, he installed $200,000 worth of equipment, which allowed him to lay off eight workers.

Now he’s facing another policy change that would further increase his labor costs. Employers are currently allowed to attribute a portion of the tips earned by their workers towards meeting the minimum wage requirement. New York State is seriously considering a proposal to eliminate the so-called tip credit. If that e January, the owner says he’ll have no choice but to give all these employees a pink slip and go fully automated.

It’s worth noting that, beyond the economic effects, such policies also presume a powerlessness among workers that simply does not exist. As seen in the responses from workers such as Par, these are not people looking for protection. They take full ownership of their duties and destinies and don’t require the arbitrary efforts of outsiders to improve their livelihoods or make vocational decisions.

Yet by making that presumption normative through the mechanisms of public policy, economic imaginations are bound to shift, leading many workers to focus on government-mandated prices rather than the creative capacity and economic power that they, themselves, actually hold. Such actions create an illusion that the wage-setter, alone, holds the power, and once such fixings are cemented into law, workers begin to adopt that as truth.

As for automation, it can be a good and productive thing, both for workers and consumers. But in cases such as these, where the driving reason isn’t consumer feedback but outside government force and coercion, the delivery and quality of services shifts for no apparent reason other than the grandiose opinions of outsider planners and activists. The values and virtues of the actual workers, consumers, and employers are subjected to the whims of the policymaker.

These are but a few examples of how the ripple effects of price manipulation go well beyond the material pains of increased unemployment and shuttered businesses. With the imposition of outsider control of wages and prices, we lead ourselves toward an economic order that prioritizes the ease of surface-level policy over the messier but more authentic process of tapping real human gifts to meet real human needs.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Nothing New ‘Underneath that Burning Sun’
Friedrich Hayek once called intellectuals “professional secondhand dealers in ideas.” And the Preacher proclaimed, “There is nothing new under the sun.” So perhaps it shouldn’t be surprising when ideas, memes, and other cultural phenomena pop up again and again. There is, however, a notable correspondence between an Acton Commentary that I wrote earlier this month, “The Worst Christmas Song Ever,” and a piece that appeared weeks earlier at The Federalist. In “‘Do They Know It’s Christmas’ Is The Worst Christmas...
Radio Free Acton: Remembering Holodomor with Luba Markewycz
In this edition of Radio Free Acton, Paul Edwards speaks with Luba Markewycz of the Ukrainian Institute of Modern Art in Chicago, Illinois about the Holodomor – the Great Famine of the 1930s inflicted on Ukraine by Josef Stalin’s Soviet Government that killed millions of Ukrainians through starvation. They discuss the Holodomor itself, and the process undertaken by Markewycz to create an exhibition of art by young Ukrainians memorate the event. You can listen to the podcast using the audio...
Reflections on How We Approach God
We know how God approached mankind: the surprising incarnation as a baby at Christmas.But how ought we to approach Him? Here is a wide range of 14 ways we often try, along with abenefit for each: Love the right things and you will find your way home to GodThink the right things and you will know the sovereign GodBelieve the right thingsand you will live at peaceObey, obey, obey and you will not go to hellWithdraw from the world and...
The Year in Acton Commentary 2014
Every Wednesday we publish the Acton Commentary, a weekly article that covers topics related to Acton’s mission. As es to a close I thought it would be worth highlighting the mentaries that have been produced by Acton Institute staffers over the past year. Rev. Robert A. Sirico A Dangerous Moment with Promise The Holy War on Corporate Politicking Pope Francis, without the politics The Holy War on Corporate Politicking Pope Francis, without the politics Samuel Gregg Poverty, the Rule of...
10 Things Political Scientists Know That We Don’t
“If economics is the dismal science,” says Hans Noel, an associate professor at Georgetown University, “then political science is the dismissed science.” Most Americans—from pundits to voters—don’t think that political science has much to say about political life. But there are some things, notes Noel, that “political scientists know that it seems many practitioners, pundits, journalists, and otherwise informed citizens do not.” Here are excerpts from Noel’s list of ten things political scientists know that you don’t: #1. It’s The...
The Blue-Cold Child
From Flannery O’Connor’s The Violent Bear It Away: God told the world he was going to send it a king and the world waited. The world thought, a golden fleece will do for His bed. Silver and gold and peacock tails, a thousand suns in a peacock’s tail will do for his crib. His mother will ride on a four-horned white beast and use the sunset for a cape. She’ll trail it behind her over the ground and let the...
Pope Francis, World Day Of Peace And Human Trafficking
January 1, for Catholics, is celebrated as the World Day of Peace. For January 1, 2015, Pope Francis’ message is a reflection on the horror of human trafficking. Entitled No Longer Slaves But Brothers And Sisters, the pope’s message calls trafficking an “abominable phenomenon” which cheapens human life and denies basic human rights to those enslaved. Taking his theme from St. Paul’s letter to Philemon, Pope Francis reflects on human dignity and true fraternity among all peoples. Pope Francis prayerfully...
Undercover Boss Celebrates Female Dehumanization
To end the 2014 on an incredibly dehumanizing note, CBS aired an episode of Undercover Boss that stirred up protests from all walks of life. Undercover Boss is usually a wonderful program that allows CEOs to see what is happening on the ground in panies and reward hard workers accordingly. However, this particular episode profiled Doug Guller, the CEO of Bikinis Sports Bar & Grill, who fired a bartender after she decided not to dehumanize herself by wearing a T-shirt...
A Dangerous Moment with Promise
In this mentary, Acton president and co-founder Rev. Robert A. Sirico reflects on Christmas, but also on the things weighing heavily on many hearts. Despite this being a joyful time, we are caught in perilous moment in history due to the meeting of various things: intellectual, financial, militarily, and theologically. President Ronald Reagan gave a similar address in 1981: Rev. Sirico says: How to get to the heart of the matter? That, as Shakespeare might say, is the rub. Yet,...
Poverty Imagery and the ‘Christmas Song’
In last week’s mentary, “The Worst Christmas Song Ever,” Jordan Ballor touched on the well-intentioned yet harmful message shared by “Do They Know It’s Christmas?” the 1984 song produced by the music group, Band Aid, in response to the famine that struck Ethiopia. Ballor describes the context and some of the song’s lyrics: The song describes Africa largely as a barren wasteland, ‘Where the only water flowing is the bitter sting of tears.’ It continues in this vein. Africa, the...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved