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
Dec 25, 2025 5:59 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
The spiritual core of political hate
“A new study confirms that creeping tribalism has Americans bitterly divided, acrimonious, and dismissive of others based on political differences,” says Rev. Ben Johnson in this week’s Acton Commentary. “Behind this animosity lies a spiritual principle that Rev. Timothy Keller touched on during his address at this year’s Acton Institute annual dinner.” The problem, Keller said, is that people chose a “modern identity” by defining pletely with one, selected characteristic or feeling. Often, it is a profession, especially high-status careers...
Rev. Tim Keller on the myth of omnicompetence
One of the dangers of forming a modern identity around achievement is what Rev. Tim Keller calls “the success-failure whiplash.” Succeeding in one area can cause people to believe they have the skills and inner qualities to do anything, and everything, alone – that they are petent. Keller discussed the process in his address to the Acton Institute’s 2018 annual dinner, which he titled “Identity, Business, and the Christian Gospel”: If your identity has e your business and your profession,...
Does social media compromise free will?
In an article for Law and Liberty, Michael Matheson Miller, a research fellow at the Acton Institute, reflects on the book “10 Arguments for Deleting Your Social Media Accounts Right Now.” Written by Jaron Lanier, a “technologist and musician”, “10 Arguments” shares thought-provoking ideas about the dangers and risks involved with social media. “It’s worth noting that Lanier is not anti-technology,” Miller writes. Working panies like Atari and Microsoft, Lanier has devoted much of his life to the tech industry....
What exactly is the unemployment rate?
Note: This is post #98 in a weekly video series on basic economics. If someone has a job, they’re defined as “employed.” But does that mean that everyone without a job is unemployed? Not exactly. For the official statistics, you have to meet quite a few criteria to be considered unemployed in the U.S., explains economist Alex Tabarrok. In this video by Marginal Revolution University, Tabarrok explains how unemployment is officially defined by the federal government. (If you find the...
Radio Free Acton: Hot, dirty, noisy: Purposeful work at Kerkstra Precast; Media blackout on Gosnell movie
On this episode of Radio Free Acton, award winning news anchor Anne Marie Schieber speaks with James Morgan about his job at Kerkstra Precast, an industrial plant. We get a look into James’ daily work and how he finds meaning and motivation in what he does. Then, Caroline Roberts talks to Phelim McAleer, co-producer of the newly released film “Gosnell: The Trial of America’s Biggest Serial Killer,” successful with audiences but since it’s release the film has faced harsh backlash,...
Explainer: What you should know about the White House’s report on socialism
What just happened? On Tuesday the White House released “The Opportunity Costs of Socialism,” a report outlining the “opportunity costs of socialism on the macro economy, including standards of living, and the impact on the Federal budget.” What is the purpose of the report? The purpose of 70-page report (the main text is 55 pages while the list of references is 15 pages), which was produced by the Council of Economic Advisers, is to “evaluate the claims of modern U.S....
The enduring influence of Russell Kirk’s ‘The Conservative Mind’
This is the seventh in a series celebrating the work of Russell Kirk in honor of his 100th birthday this October. Read more from the serieshere. Back in the glory days of the Reagan years, I considered myself a rather hard-core libertarian. My mom—one of the most brilliant and well-read persons I have ever known (and ever will)—was a devout Goldwaterite and munist. She read everything under the sun, and she encouraged me to do the same, never censoring anything....
Rev. Tim Keller on how the modern identity presents problems for life and business
On October 17, Rev. Timothy Keller delivered a keynote speech to a sold-out audience at the Acton Institute’s 2018 Annual Dinner. In his address, Keller explains the concepts of “traditional identity” and “modern identity” and their prevalence in present-day culture. Modern identity, claims Keller, presents serious problems for the contemporary business world. Keller presents the Gospel as the answer to modern issues of identity. From engaging work by scholars such as Charles Taylor to reciting lyrics from Disney’sFrozen, Keller’s municates...
Manna and the land: God’s methods of miraculous provision
Throughout the Bible, we see miraculous moments of God’s immediate provision. He provides manna and quail for the Israelites in the wilderness (Ex. 16). For Elijah, he uses ravens to deliver bread and meat and later supplies daily meal and oil (1 Kings 17). He provides wine for the wedding at Cana (John 2). He multiples loaves and fishes among Jesus’ disciples to feed a crowd of five thousand (Matthew 14). Yet if God is able to intervene and provide...
Acton Institute continues its Mini-Grants on Free Market Economics program to support college faculty for research and teaching
iStock With the application now live, the successful Mini-Grants on Free Market Economics: Research & Teaching continues for the 2019 year. This grant program is intended to enhance the effectiveness in the research and teaching of market economics for faculty at colleges, universities, and seminaries in the United States and Canada. With minimal application requirements and a streamlined application process, there is an ample amount of time to prepare your ponents and apply by the March 31, 2019 deadline. The...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved