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 25, 2026 8:57 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
What Margaret Thatcher understood about income inequality
Margaret Thatcher once told an interviewer, “Of course, I am obstinate in defending our liberties and our law. That is why I carry a big handbag.” During her time as Prime Minister, Thatcher’s handbag became an iconic symbol of her ability to handle opponents. The term “handbagging” even entered the Oxford English Dictionary (the verb “to handbag” is defined as: (of a woman politician), treat (a person, idea etc) ruthlessly or insensitively) to describe her rhetorical style. Thatcher’s handbagging usually...
Texas: Big, Hot, Cheap and Right in the New York Times!
Brian Burrough has a mostly enjoyable New York Times review of a book that’s mostly positive about my native state’s mostly small-government formula for economic growth. Some excerpts: Ms. Grieder, a onetime correspondent for The Economist who now works at Texas Monthly, and a Texan herself, has written a smart little book that … explains why the Texas economy is thriving. It’s called “Big, Hot, Cheap and Right: What America Can Learn from the Strange Genius of Texas”…. What might...
10 memorable Thatcher quotes on economics and freedom
1. “Pennies don’t fall from heaven, they have to be earned here on earth.” (Speech at Lord Mayor’s Banquet, 11/12/79) 2. “If a Tory does not believe that private property is one of the main bulwarks of individual freedom, then he had better e a socialist and have done with it.” (Article for Daily Telegraph, “My Kind of Tory Party,” 01/30/1975) 3. “I came to office with one deliberate intent: to change Britain from a dependent to a self-reliant society...
Executive Pay and Shareholder Resolutions
As keystroke mitted to screen in the writing of this post, J.C. Penney honcho Ron Johnson received his walking papers. This after it was announced last week that the ousted CEO had his pay cut 90 percent– tanking his 2012 salary to a mere $1.9 million from a sum north of $50 million in 2011. With numbers like that, Johnson more than likely won’t apply for unemployment benefits anytime soon. But pensation unfortunately will add more fuel to the fire...
Albert Mohler on Leadership, Stewardship, and the Sovereignty of God
In a recent post on leadership and stewardship, Albert Mohler argues that although “Christians are rightly and necessarily concerned about leadership,” we often exhibit a tendency to “aim no higher than secular standards and visions of leadership.” Instead, Mohler argues, the Christian is called to “convictional leadership,” something defined by fundamental Biblical beliefs that are “transformed into corporate action,” rather than a general deference to the status quo of secularist thinking: Out in the secular world, the horizon of leadership...
What’s Wrong With Politics? – Lady Margaret Thatcher
In 1968, Margaret Thatcher, then a member of the Shadow Cabinet as a junior minister of Great Britain, gave a speech entitled, What’s Wrong With Politics? Despite that fact that the speech is now 45 years old, it is as relevant today as then – in some unfortunate ways. Here are some excerpts. [T]he extensive and all-pervading development of the welfare state is paratively new, not only here but in other countries as well. You will recollect that one of...
Video: John Blundell on Thatcher
On October 5, 2011, Acton ed John Blundell, Distinguished Senior Fellow at the Institute of Economic Affairs, to deliver a lecture as part of the 2011 Acton Lecture Series. His address was entitled “Lessons from Margaret Thatcher,” and provided insight into the Iron Lady from a man who had known Thatcher well before she became the Prime Minister of Great Britain. You can watch his lecture below. ...
New Mexico Wisely Breaks With Bad California Tax Policies
The best show on TV over the past five years has, in my not-so-humble-opinion, been AMC’s Breaking Bad. This is one over-hyped show that lives up to all of it (and more). While the on-air sage of Walter White concludes this summer, Breaking Bad‘s pop-culture legacy may take a back-seat to it’s legislative and fiscal ones. From The Hollywood Reporter: New Mexico Gov. Susana Martinez signed into law Thursday the state’s “Breaking Bad” bill, which will increase subsidies on film...
New Abraham Kuyper Volume: ‘Rooted and Grounded’
Christian’s Library Press has released Rooted & Grounded by Abraham Kuyper. This short volume includes first-ever translated sermons by Kuyper showing his passion to the church. While he’s well known forhis writings on theology mon grace, this book demonstrates Kuyper’s enthusiasm for the church as well.In his seminal sermon, included in this volume, Kuyper outlines the basic distinction and connection between his conception of the church as institution and the church as organism, a view which became formative for neo-Calvinist...
Crime and the Nanny State
“Crime has been in decline,” says Acton Research Fellow Jonathan Witt, in an article for The American Spectator, “but current government policies are bound to reverse this trend.” Against the backdrop of sluggish growth and high unemployment, one bright spot has been declining crime rates, with levels in the United States now about half what they were 20 years ago. This gradual decline holds true even in the perennially high-risk demographic of young men, suggesting it isn’t merely a knock-on...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved