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
Aug 28, 2026 9:21 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
Sacred Selling
I have been thinking a lot about the way we sell church-related goods and services. I have been thinking about that and about Jesus overturning the tables of the money changers and sacrificial animal sellers in the temple. The marketing inside the church has probably never been more feverish than it is today. Hollywood hires savvy Christian marketers to try to gin up interest in certain films among our demographic. We trademark little phrases for sale to Christians. I recently...
Health Care Principles to Remember
With the health care debate heating up once again, and a vote pending on the legislation on Saturday in the US Senate, here are a few bits mentary on the process from Acton’s audio archives that will help you to understand some of the important issues at stake: September 10, 2009: Dr. Kevin Schmeissing joins host Al Kresta to analyze President Obama’s address to Congress on health care reform: [audio: 10, 2009: Dr. Samuel Gregg, Acton’s Director of Research, discusses...
The Gulag Lives On – But Not in Our Culture
I linked Daniel Crandall’s mentary on the paucity of films devoted to the Gulag in this week’s Acton News & Commentary (sign up here). But do to an, ahem, editing error the link did not send readers to The Gulag Lives On – But Not in Our Culture on OrthodoxyToday.org. Crandall also discusses the paintings of Nikolai Getman, whose work based on Gulag life is on display at the Heritage Foundation through Dec. 10. As Heritage explains it, “Getman began...
Economic Liberalism and its Discontents
How do we restore confidence in free markets? Formulate a robust explanation of their moral value. Read Economic Liberalism and its Discontents on Public Discourse. In his recent book The Creation and Destruction of Value, Princeton University’s Harold James observes that the 2008 financial crisis resulted in more than the devastation of economic value. It also facilitated a collapse of values in the sense of people’s faith in particular ideas, institutions, and practices. Among these, few would question that economic...
Studying Stewardship in Scripture
This weekend’s Grand Rapids Press featured a story about the release of the NIV Stewardship Study Bible. Ann Byle writes, Three Grand Rapids-based organizations and numerous local residents joined forces recently to create a study Bible that focuses on stewardship. The Acton Institute, the Stewardship Council and Zondervan brought the NIV Stewardship Study Bible into print after more than five years of work that began with Brett Elder, the council’s executive director. Elder traveled the world speaking on generosity. He...
The Financial Crisis: What We (Still) Haven’t Learned
It’s over a year now since the 2008 financial crisis spread havoc throughout the global economy. Dozens of books and articles have appeared to explain what went wrong. They identify culprits ranging from Wall Street financiers overleveraging assets, to ACORN lobbying policy-makers to lower mortgage standards, to politicians closely connected to government-sponsored enterprises such as Freddie Mac and Fannie Mae failing to exercise oversight of those agencies. As time passes, armies of doctoral students will explore every nook and cranny...
Catholic Business Blog
mon criticism of Catholic social teaching from businesspeople is that it remains too vague or abstract to provide concrete guidance for daily practice. There’s a new blog at CatholicCulture.org, where Peter Mirus, as a businessman, reflects on the moral dimensions of various aspects of his work. Here, for example, is a thoughtful one on being truthful. “At pany,” he says, some our greatest successes in consulting e through telling a current or potential client the hard facts. That decision hasn’t...
Oaths, Lies and Social Responsibility
The other day I was tracking down a quotation I heard repeated at a local gathering and came across an interesting book published in 1834. On the title page of the “Googled” Oaths; Their Origin, Nature and History someone had scribbled “full of information… a superior work.” The introductory paragraph reads: It is well observed by an ancient writer [Hilarius of Arles] that would men allow Christianity to carry its own designs into full effect; were all the world Christians,...
Catholics, Abortion, and the Health Care Debate
This morning, Kishore Jayabalan – Director of Acton’s Rome office – joined hosts Melanie Morgan and Ernest Istook on America’s Morning News to discuss the ongoing controversy over abortion coverage in the hotly debated Obama/Pelosi/Reid health care bills currently under consideration by Congress, and to give some perspective on how the Catholic Bishops have dealt with the issue to date. You can listen using the audio player below. [audio: ...
Acton Commentary: Government Health Care — Back to the Plantation
Black leaders constantly remind Americans of our racism. Should not these same leaders protest the expansion of government control contained in the health-care reform bill currently working its way through Congress? Here’s why. Notwithstanding their rhetoric of freedom and empowerment, many prominent black leaders appear content to send blacks back to the government plantation—where a small number of Washington elites make decisions for blacks who aren’t in the room. Why do minority leaders not favor alternatives that demonstrate faith in...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved