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
May 5, 2025 2:11 AM

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 Ecumenical Future
Today is my last day at the Evangelical Theological Society (ETS) meeting in Atlanta. I plan to make my purchases from the various book sellers this morning, having already reconnoitered the exhibits and mapped out my plan of attack. One thing that has struck me is that there are a number of new books discussing ecumenism and Christian unity from host of different perspectives. On the one hand this shouldn’t be surprising. The unity of the church is a constant...
Debate: The Source of Human Morality
The University of Maryland — Baltimore County Orthodox Christian Fellowship and the school’s Secular Student Alliance sponsored a Nov. 16 debate on the subject of “The Source of Human Morality” with about 450 people in attendance. Fr. Hans Jacobse, an Orthodox Christian priest and president of the American Orthodox Institute (he blogs here), squared off with Matt Dillahunty, the president of the Atheist Community of Austin, and host of the public access television and Internet show The Atheist Experience. The...
Vocation: The Doctrine of the Christian Life
On Nov. 18, at the General Meeting of the Evangelical Theological Society in Atlanta, Gene Edward Veith of Patrick Henry College gave a lecture titled, “Vocation: The Doctrine of Christian Life.” In the lecture, he explains why theological educators can’t fulfill their own vocation until they recover the vocations of those around them. The lecture was sponsored by the Oikonomia Network, a project of the Kern Family Foundation, dedicated to integrating discipleship with everyday life by developing a biblical perspective...
Peter Cook: A Champion of the Free and Virtuous Society
Peter Cook (center) with fellowship recipients Bo Helmlich (right) and Adam Co at Acton’s 1999 Annual Dinner. In the main hallway of the Acton Institute hangs a large plaque. The plaque carries the names of the most exceptional students to grace Acton’s Toward a Free and Virtuous Society conferences from 1994 forward. These students, named as Cook Fellows for their outstanding promise and engaged participation, share a connection to the great businessman and philanthropist, Peter Cook. Over the 20 years...
Secular Waste Lands and Hollow Men
Joseph Epstein’s essay, “T.S. Eliot and the Demise of the Literary Culture,” in the November issue of Commentary, strengthens the case for The Waste Land author’s enduring legacy. Epstein captures the high points of Eliot’s biographical and literary plishments in only eight pages – an admirable feat given the extent of Eliot’s influence on the past century. After filling out the checklist of Eliot’s early poetry, friendships, jobs, marriages, alleged anti-Semitism, and criticism by rote, Epstein concludes Eliot was a...
Europe, Immigration, and Merkel’s Christian Values
This week’s Acton Commentary. Sign up for our free, weekly email newsletter here. Europe, Immigration, and Merkel’s Christian Values By Samuel Gregg It’s not often senior European political leaders make politically-incorrect statements, but Germany’s Chancellor Angela Merkel has recently made a habit of it. The subject has been the touchy question of Muslim immigration and the challenges it poses for European identity. Not only has Merkel upset the European political class (especially the Left and the Greens) by saying what...
Catholic Social Teaching and the Tea Party Movement
Kevin J. Jones of the Catholic News Agency interviewed Acton’s Rev. Robert A. Sirico and Dr. Steven Schneck, Director of the Institute for Policy Research & Catholic Studies at the Catholic University of America, to find out how the Tea Party lines up with Catholic Social Teaching. Here’s a snip: Fr. Sirico described the Tea Party as “an amorphous thing” with a lot of variety and as a “populist, spontaneous movement.” He thought mon themes include a desire for less...
When Ecumenism Meets Subsidiarity
Today a group of Calvin Seminary students enjoyed a lunchtime talk by Dr. John H. Armstrong, founder of ACT 3 and adjunct professor of evangelism at Wheaton College, “Missional-Ecumenism: The Protestant Challenge and Opportunity.” Dr. Armstrong spoke about his book, Your Church is Too Small: Why Unity in Christ’s Mission Is Vital to the Future of the Church, where he lays out his vision for missional-ecumenism. Rather than emphasizing the institutional and international focus of the older mainline ecumenical movement,...
Lincoln’s Thanksgiving Day Proclamation
Text of proclamation: The year that is drawing toward its close has been filled with the blessings of fruitful fields and healthful skies. To these bounties, which are so constantly enjoyed that we are prone to forget the source from which e, others have been added, which are of so extraordinary a nature that they cannot fail to penetrate and soften the heart which is habitually insensible to the everwatchful providence of almighty God. In the midst of a civil...
Acton at ETS 2010
A number of Acton staffers, including myself, had the pleasure of attending the 2010 meeting of the Evangelical Theological Society held in Atlanta, Georgia. There will be more on some of the goings-on at this event e, but to get a sense of what our presence was like in the exhibition space, check out the pictures below. Kudos especially to Kara Eagle who did a great job with design (assisted by Melissa Burkholder) and execution of our exhibit space. We...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved