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 6, 2026 7:50 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
Audio: Todd Huizinga Talks Global Governance and the New Totalitarian Temptation
Todd Huizinga, Acton’s Director of International Outreach, joined host John J. Miller of National Reviewto discuss his new book,The New Totalitarian Temptation, on the Bookmonger Podcastat Ricochet.They discussed the problems afflicting the European Union, the potential Exit of the UK from the EU, and whether or not the United States faces the same problems with unaccountable government that bedevil Europe. You can listen to the podcast here. If you find the topic interesting, you can join us tomorrow here at...
5 Facts About Patrick, the Indiana Jones of Saints
An aristocratic British teenager is kidnapped by pirates, sold into slavery, escapes and returns home, es a priest, returns to his land of captivity and face off against hordes of Druids. It’s not a Hollywood story, but the real life adventures of Patrick. Here are five facts about the amazing life of St. Patrick, the Indiana Jones of Christian saints: 1. Taken from his home in southern Britain, Patrick was captured by pirates in A.D. 405 when he was only...
Video: A Gentleman’s Debate – Distributism vs. Free Markets with Jay Richards and Joseph Pearce
On February 18th, the Acton Institute was pleased to e Jay Richards and Joseph Pearce to our Mark Murray Auditorium for an exchange on two distinct ideas on economics: Distributism vs. Free Markets. The gentleman’s debate was moderated by Acton Institute President Rev. Robert A. Sirico. Joseph Pearce, writer in residence at Aquinas College in Nashville, Tennessee, and Director of the college’s Center for Faith and Culture, argued in favor of distributism; Jay Richards,Assistant Research Professor School of Business and...
Feel the Romantic Bern
“Do voters have a mitment problem’ with Bernie Sanders?” asks Dylan Pahman in this week’s Acton Commentary. So why would someone who seems really to want to be President (unlike candidates who appear to be using their campaigns to promote a book, for example) tell Americans he’s a socialist when half the country says they wouldn’t vote for one? How does that serve his interest? Shouldn’t it hurt his electability? The full text of the essay can be found here....
U.S. House unanimously passes bill declaring Islamic State guilty of genocide
UPDATE: (3/17/16) United States: Islamic mitted genocide against Christians, Shi’ites. U.S. Secretary of State John Kerry: “The fact is that Daesh kills Christians because they are Christians. Yazidis because they are Yazidis. Shi’ites because they are Shi’ites,” Kerry said, referring to the group by an Arabic acronym, and accusing it of crimes against humanity and of ethnic cleansing. Video of Secretary Kerry giving his statement on the Islamic State is now included at the bottom of this post. ✶✶✶✶✶ In...
The Double Disaster of Anti-GMO Activism
Your writer persistently has defended genetically modified organisms (GMOs) from munity of religious shareholder activists in this space. Among these activists are the religious investors affiliated with Green America, including As You Sow. Even outside Green America’s orbit, AYS members continue to reject science and the itant reduction of world hunger. Just last week, AYS released its 2016 Proxy Preview wherein it boasts: GMOs: Just two proposals concern themselves with genetically modified organisms (GMOs) in 2016, a drop from recent...
Audio: Joe Carter on Trump’s Folk Marxism
Yesterday, Acton Institute Senior Editor Joe Carter joinedhost Al Kresta on Ave Maria Radio’s Kresta in the Afternoonto discuss the phenomenon that is Donald Trump and his presidential campaign. Carter explains that Trump’s appeal lies in the fact that he’s bringing a brand of folk Marxism to an entirely new audience. Trumpis nota Marxist, but his pitting of oppressed classes against their oppressors is drawn from folk Marxism, and has been a powerful political tool in the 2016 campaign. You...
Explainer: What You Should Know About GMOs and Mandatory Food Labeling
Last year, the House passed a bill to preempt states from imposing mandatory labeling of genetically engineered food (GMOs). But as Daren Bakst notes, “While it looked like the Senate was going to follow suit, in the last minute, the new Senate bill would actually effectively mandate the labeling of genetically engineered food.” “In the Senate bill, there would be a national mandatory labeling requirement unless the Secretary of Agriculture determines that there has been substantial participation by labeled foods...
How to Avoid the ‘Messiah Complex’ in Short-Term Missions
As many are beginning to realize, and as the new documentary, Poverty, Inc., details at length, the foreign aid movement has largely failed the global poor, promoting top-down solutions at the expense of bottom-up enterprises and institutions. This is partly due to errors in economic thinking, but it es froma lack of understanding and appreciation forthe intangible assets in munities, particularly as it relates to the social and the spiritual. “There has got to be more than just a change...
Gregg on Pope Benedict, Western civilization, law, and reason
Pope Benedict XVI often ventured into venues historically hostile to the Judeo-Christian tradition. A new collection of essays discusses many of these speeches, probing the relationship of reason to religion, the West, and natural law. Pope Benedict XVI’s Legal Thought: A Dialogue on the Foundation of Law, edited by Marta Cartabia and Andrea Simoncini, explores the Pope Emeritus’ speeches as well as the implications they have for law and democracy. Writing for Public Discourse, Acton’s Samuel Gregg discusses this collection...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved