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
Feb 20, 2026 2:22 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
ResearchLinks – 09.28.12
Article: “Big Questions and Poor Economics” James Tooley. “Big Questions and Poor Economics: Banerjee and Duflo on Schooling in Developing Countries.” Econ Journal Watch 9, no. 3 (September 2012): 170-185. In Poor Economics, MIT professors Abhijit Banerjee and Esther Duflo set out their solutions for global poverty. Their key premise is that development experts have been sidetracked by the “big questions” of development, such as the role of government and the role of aid. This approach, they say, should be...
Samuel Gregg on the Vatican’s Role in Global Diplomacy
World Politics Review recently interviewed Acton Research Director Samuel Gregg about the Vatican’s foreign policymaking: WPR: What are the main policy initiatives that the Vatican is currently promoting on the international stage, and how receptive are other nations to its interests? Gregg: At present, one major initiative concerns the promotion of religious liberty. The Holy See believes this right is poorly recognized in many nations — especially in the Middle East and China — and that Christians are suffering as...
Is Student Loan Debt an Avoidable Crisis?
At the height of the housing crisis, it was estimated that 11 million homes in America were mortgaged for more than they were worth. That debt crisis may soon be dwarfed—if it hasn’t been already—by the student loan debt problem: With college enrollment growing, student debt has stretched to a record number of U.S. households — nearly 1 in 5 — with the biggest burdens falling on the young and poor. The analysis by the Pew Research Center found that...
Obamacare ‘tramples parental rights’
It is alarmingly clear that so-called “Obamacare” has troubling implications for parents and children, not just employers with religious convictions regarding artificial birth control and abortion. According to an article in the National Catholic Register, Matt Bowman, senior counsel for Alliance Defending Freedom, Obamacare “tramples parental rights” because it requires them to “pay for and sponsor coverage of abortifacients, sterilization, contraception and education in favor of the same for their own children.” To date, 26 states and the District of...
Societal Development and the Kalamazoo Promise
In a recent New York Times article (here), Ted C. Fishman offers and in-depth feature on the Kalamazoo Promise: Back in November 2005, when this year’s graduates were in sixth grade, the superintendent of Kalamazoo’s public schools, Janice M. Brown, shocked munity by announcing that unnamed donors were pledging to pay the tuition at Michigan’s public colleges, universities munity colleges for every student who graduated from the district’s high schools. All of a sudden, students who had little hope of...
Is There a Moral Duty to Not Vote?
During the electoral season of 2004, philosopher Alasdair MacIntyre wrote aprovocativeessay titled, “The Only Vote Worth Casting in November.” In the essay he writes, [T]he only vote worth casting in November is a vote that no one will be able to cast, a vote against a system that presents one with a choice between [X’s] conservatism and [Y’s] liberalism, those two partners in ideological debate, both of whom need the other as a target. Andrew Haines, founder of the Center...
Where Does Your Mutual Fund Go to Church?
Are you a risk-adverse investor? Then you may want to avoid choosing a mutual fund that’s headquartered in an area with lots of Catholics. New research from the University of Georgia and Southern Methodist University and published in Management Science shows that the dominant local religion—whether Protestant or Catholic—significantly affects mutual fund behaviors. Specifically, the findings show that mutual funds headquartered in heavily Catholic areas tend to take more risks and funds in heavily Protestant areas take less risks, said...
EU’s Highest Court Rules in Favor of Religious Refugees
The European Court of Justice has ruled that those who are unable to practice their religion openly are entitled to claim asylum on the continent: In what could prove a landmark ruling for oppressed Christians, the European Court of Justice has ruled that people who are persecuted in their native countries due to their religion have the right to apply for asylum in Europe. Confirming the ruling of a German court, the European Court of Justice – the highest court...
Christian Manufacturer Strives Toward Productivity and Grace
I recently wrote about Hobby Lobby’s billionaire CEO, who, in a recent Forbes profile, made it clear how deeply his Christian faith informs his economic decision-making. This week, in Christianity Today, HOPE International’s Chris Horst profiles another Christian business, Blender Products, whose owners Steve Hill and Jim Howey actively work to elevate the practices of the metal fabrication business and, above all, operate their business “unto the Lord.” pany’s foundational verse? Colossians 3:17: “And whatever you do, in word or...
‘People are the number one resource, not money’
Very often in charity and foreign aid work, we forget that the people to whom charity and aid are given are quite capable, smart and resourceful but are simply caught in difficult situations. I recently had a chance to speak with Mary Dailey Brown, the founder of SowHope. She shared with me her organization’s method of meeting with the leaders of villages and areas that SowHope is interested in helping, listening to what they have done and wish to do,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved