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 9, 2026 1:25 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
Rent and Regulations are a Household’s Greatest Expenses
A new study estimates the cost of regulation in the U.S. at $14,768 per household: For two decades, Wayne Crews of the Competitive Enterprise Institute has tracked the growth of new federal regulations. In his 20th anniversary edition this week, he’ll report that pages in the Code of Federal Regulations hit an all-time high of 174,545 in 2012, an increase of more than 21% during the last decade. Relying largely on government data, Mr. Crews estimates that in 2012 the...
Bruce Edward Walker: ‘Shutting down discourse is justice denied’
Bruce Edward Walker recently wrote mentary for The Tampa Tribune entitled, Shutting Down Corporate Speech in the Name of Social Justice. He says that: Corporate boardrooms arebeing caught up ina newwave of religious fervor sparkedbyclergy andmembers ofreligious ordersin search ofsocial justice. Alas, this movement is only superficially about the spirit.In truth,corporate directors pany executives are facinga very worldlymissionary effort bypriests, pastors, nuns and laypersonsarmed withproxy shareholder resolutionsthat advance politically liberal dogmas, including attempts to undermine the Supreme Court’sCitizens United ruling....
If Only Women Ran The World….
My persuasion can build a nation Endless power With our love we can devour You’ll do anything for me -Beyonce, “Run the World (Girls)” That’s the apparent fantasy of Democratic Congresswoman Jan Schakowsky of Illinois. She recently hosted her annual fundraising luncheon, with guest speaker, Planned Parenthood’s Cecile Richards. Schakowsky said, “humanity is at a crossroads on this small planet and that our survival as a species is dependent on women taking charge, taking the world in our own hands.”...
Paying For College By Selling Yourself
There is no doubt that higher education is costly. Textbooks alone can run $1000 a semester for some undergraduates. Waiting tables and flipping burgers won’t cover those costs. With many parents just as strapped for cash as their children, how does one pay for a college diploma? For some young women, the answer is to sell themselves. There are websites that offer “matching” services for “mutually beneficial relationships”; that is, a young woman signs up for a “sugar daddy”. He...
‘The USDA of Europe?’
Tim Burrack, vice chairman and board member of Truth About Trade & Technology, recently wrote mentary for the Washington Times about the agriculture industry in the U.S. and how it is ing more and more European. He says there is fear of a “growing bureaucracy that is smothering freedom and innovation.” Burrack goes on to explain that the U.S. Department of Agriculture has taken an unfortunate step toward Europeanization when it delayed the approval of two crops that will help...
‘God’s Love with Work Gloves’
After a disaster strikes, very few organizations have the vast resources and expertise to feed so many people as Southern Baptist Disaster Relief. They have received praise from countless victims and organizations, including The American Red Cross. After Katrina, they were the first to have hot food tents up and running, feeding tens of thousands three meals a day in munities along the Gulf Coast. Most state Baptist Conventions have their own disaster relief agencies that in many instances have...
Q&A: Neighborhood Film Company on Transforming the Broken Through Business
Ricky Staub and Anders Lindwall were on a steady path to success in the film industry. Ricky was working for a big producer and Anders was freelancing as mercial director. Then, God called both of them to leave their jobs and start pany of their own — one focused on leveraging the process of filmmaking toward whole-life transformation for adults in recovery. Creating a unique business model founded on a concept called “family ratios,” NFCo melds for-profit with non-profit to...
Commentary: Recruiting for Big Government: Food Stamps Run Amok
The Supplemental Nutrition Assistance Program (SNAP), the federal government’s “food stamp” program, is symptomatic of America’s current view of the role of government, says Elise Hilton. It is there to take care of our every need. Hilton notes that the government is actively recruiting people for SNAP, in a heady mix of money, entitlement, and big government. The full text of her essay follows.Subscribe to the free, weekly Acton News & Commentary and other publicationshere. Recruiting for Big Government: Food...
Churches Mobilize Professional Response for Oklahoma
One of the powerful scenes after Hurricane Katrina was church organizations cutting their way through the roads with chainsaws so they could set up hot meal tents the very next day. Church responders have transformed into “well oiled machines” and are being praised by The Red Cross and federal agencies. Because of Katrina, and tornadoes like the ones that decimated parts of Tuscaloosa, Ala. and Joplin, Mo., churches in munities can offer a level of expertise to the local houses...
Religious Persecution: Syrian Christians Are ‘Exhausted’
The plight of Syrian Christians is well-documented, and includes the kidnapping of two Syrian bishops. In an address to the General Assembly of the Church of Scotland this week, Dr. Mary Mikhael of the National Evangelical Synod of Syria, said Syrian Christians are “exhausted” from the strain of life in that nation. She said there was no Arab Spring for the people of Syria but ‘only a stormy dark winter’. In particular, she expressed concern that there would soon be...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved