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 2:42 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
Verse of the Day
  Commentary on Today's Verse   Commentary on Proverbs 25:28   (Read Proverbs 25:28)   The man who has no command over his anger, is easily robbed of peace. Let us give up ourselves to the Lord, and pray him to put his Spirit within us, and cause us to walk in his statutes.   Proverbs 25:28 In-Context   26 Like a muddied spring or a...
Verse of the Day
  Commentary on Today's Verse   Commentary on Proverbs 10:18   (Read Proverbs 10:18)   He is especially a fool who thinks to hide anything from God; and malice is no better.   Proverbs 10:18 In-Context   16 The wages of the righteous is life, but the earnings of the wicked are sin and death.   17 Whoever heeds discipline shows the way to life, but whoever...
Verse of the Day
  Romans 2:5-6 In-Context   3 So when you, a mere human being, pass judgment on them and yet do the same things, do you think you will escape God's judgment?   4 Or do you show contempt for the riches of his kindness, forbearance and patience, not realizing that God's kindness is intended to lead you to repentance?   5 But because of...
Verse of the Day
  Isaiah 40:28-31 In-Context   26 Lift up your eyes and look to the heavens: Who created all these? He who brings out the starry host one by one and calls forth each of them by name. Because of his great power and mighty strength, not one of them is missing.   27 Why do you complain, Jacob? Why do you say, Israel,...
Verse of the Day
  James 4:1-3 In-Context   1 What causes fights and quarrels among you? Don't they come from your desires that battle within you?   2 You desire but do not have, so you kill. You covet but you cannot get what you want, so you quarrel and fight. You do not have because you do not ask God.   3 When you ask, you...
Verse of the Day
  Commentary on Today's Verse   Commentary on 1 Peter 3:14-22   (Read 1 Peter 3:14-22)   We sanctify God before others, when our conduct invites and encourages them to glorify and honour him. What was the ground and reason of their hope? We should be able to defend our religion with meekness, in the fear of God. There is no room for any...
Verse of the Day
  Commentary on Today's Verse   Commentary on 1 Corinthians 3:16-17   (Read 1 Corinthians 3:16-17)   From other parts of the epistle, it appears that the false teachers among the Corinthians taught unholy doctrines. Such teaching tended to corrupt, to pollute, and destroy the building, which should be kept pure and holy for God. Those who spread loose principles, which render the church...
Verse of the Day
  Commentary on Today's Verse   Commentary on Proverbs 5:15-23   (Read Proverbs 5:15-23)   Lawful marriage is a means God has appointed to keep from these destructive vices. But we are not properly united, except as we attend to God's word, seeking his direction and blessing, and acting with affection. Ever remember, that though secret sins may escape the eyes of our fellow-creatures,...
Verse of the Day
  Isaiah 26:8-9 In-Context   6 Feet trample it down- the feet of the oppressed, the footsteps of the poor.   7 The path of the righteous is level; you, the Upright One, make the way of the righteous smooth.   8 Yes, Lord, walking in the way of your laws,Or judgmentswe wait for you; your name and renown are the desire of our...
Verse of the Day
  Isaiah 45:5-6 In-Context   3 I will give you hidden treasures, riches stored in secret places, so that you may know that I am the Lord, the God of Israel, who summons you by name.   4 For the sake of Jacob my servant, of Israel my chosen, I summon you by name and bestow on you a title of honor, though...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved