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 7, 2026 3:56 PM

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
Happy Smothers, I Mean, Mother’s Day
Augustine observes that humans are constituted in large part by their sociality. As he puts it in the City of God, “For there is nothing so social by nature as this race, no matter how discordant it has e through its fault.” I have written that a corollary of the natural law is a vision of society as one based on mutual aid. This includes economic exchange as well as the economy of gifts and the corresponding gratitude, as I...
Gerson on the Common Good
Michael J. Gerson’s ium to Jim Wallis’ book on mon good includes this curious paragraph: Nearly every Christian tradition of social ethics passes two sorts of justice. The first is procedural justice: giving people what they deserve under contracts and the law. The second is distributive justice: meeting some needs just because human beings are human beings. This is not the same thing as egalitarianism; confiscation is passion. But distributive justice requires a decent provision for the vulnerable and destitute....
The IRS and the Tea Party: A Confederacy Theory
When I was a young Marine I learned that when manding officer says, “I wish” or “I desire,” these expressions have the force of a direct order and should be acted upon as if they had given a direct order. If our CO were to say, even in musing to themselves, “I wish there was something that could be done about that,” we knew we should jump into action. But what sort of action was called for? And should we...
How to Integrate Work and Discipleship in Your Congregation
Over at The High Calling, Michael Kruse observes that many pastors and church leaders are now looking for a “programmatic strategy” for helping their congregations integrate work and discipleship. The problem, Kruse argues, is that such a strategy doesn’t exist: As leaders, we need to realize that to make faith and discipleship integrated in our congregations, we cannot do itwith our congregation’s existing knowledge and skills, requiring those in our congregation (including ourselves) to make a shift in our values,...
Community Colleges Lower Standards And Cheat Students
Higher education is in serious trouble. Plagued with the pressures of escalating costs and retention challenges, all sorts of perverse incentives are being introduced that are changing the quality of the education delivered. In an effort to save money, many college students make the choice to spend their first two years at munity college and then transfer to a traditional school to finish out their college degree. Instead of being driven by education quality, students are making decisions on the...
Lower the Age of Consent to Thirteen? Why Stop There?
Barbara Hewson, a London barrister, has made the call for lowering the age of sexual consent in the United Kingdom from 16 to 13. Her reasoning (if one may call it that) is that the current age of consent leads to the harassment and “persecution of old men.” She also believes that under-age victims should have no right to anonymity, and that law based on the best interests of the child should not trump the “rights” of men who like...
Shoeing Horses in Detroit: How Unions Are Hindering A City’s Revival
Anyone who’s been to Detroit in recent years knows it’s a mess. Acres and acres of abandoned houses, a population decline of 25% in the past 10 years, an astronomical crime rate, and the city is literally leaking money to the tune of some $200 million in two months. Back in March, Gov. Rick Snyder appointed bankruptcy attorney Kevyn Orr as the city’s emergency financial manager, and Orr has just released his report on the city’s financial state. Before we...
Video: This is Angola
Yahoo! Sports recently posted this interesting video about the Angola Prison Rodeo. In theVolume 22, Number 3 issue of Religion & Liberty, Ray Nothstine had a chance to go to Angola and interview Burl Cain, the longest serving warden. During the interview Cain says: I cannot change our reputation because it still makes people shudder, “Angola.” Life magazine called it the bloodiest prison in America. And we can’t shirk the reputation because the people e here are so violent. People...
Cato Unbound: Conservative-Libertarian Fusionism
I’m a contributor to this month’s edition of Cato Unbound, on the topic of “Conservative-Libertarian Fusionism.” The forum consists of four lead essays from the panelists followed by ad hoc discussion. The first four essays are up: “The State of the Debate” by Jacqueline Otto“An Unequal Treaty” by Jeremy Kolassa“The Death of Fusionism” by Clark Ruper“Against Confusionism: Liberty and Civil Society” by Jordan Ballor Read more about the contributors and be sure to check out the pieces and follow the...
Less Ayn Rand, More Wilhelm Röpke
Some Christian free market enthusiasts mistakenly believe we have to make a choice between socialism and Randianism. But as Joel Miller points out, there are far better intellectual leaders than Ayn Rand. Wilhelm Röpke is a prime example: Capitalism has had many defenders. Some, rather than being anti-religious like Rand, are self-consciously Christian. Rand’s contemporary, Wilhelm Röpke, is one such example. Looking back at the tremendous upheavals of the first half of the twentieth century, many responded by embracing socialism,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved