New Video Shows How NY’s $15 Minimum Wage Is Backfiring by Encouraging Automation, Lawlessness

ReasonTV/YouTube

A new video investigated the effects of New York’s decision to raise the minimum wage to $15 per hour, and revealed how some of the arguments against minimum wage hikes were true.

The video, released by the libertarian Reason Magazine on Thursday, showed how the wage change led to job losses in the car wash industry, distorted competition, and fostered a black market for labor.

Raising the wage reportedly pushed employers to use machines and helped incumbent employers avoid competition.

“We used to do the same thing with 25 people, and now I’m doing it with two,” Jack Belinsky, a Queens car wash manager, said.

Watch the video below:

He switched to just washing exteriors with machinery and letting customers vacuum their own cars.

“Before if I go exterior, my competition would say, ‘ah, he went exterior and I’m still full-service so I’ll take all his customers,'” Belinsky reportedly said.

“That never gave me a chance to go exterior. Now everybody is forced to go exterior because of this crazy law and the minimum wage $15 per hour. It evened out the field,” he added.

Reason also claimed that car wash workers started going to the streets where they could work without taxes, unions, and wage floors.

One man, only identified as Fausto, said the economy led him to work illegally. “The economy has led us to this situation to have to work washing cars in the street,” he said.

What do you think?

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Phyllis Softa
Member

First off, Sam was either flat out lazy on writing the article or intentionally misleading. NY minimum wage law excludes certain counties—excludes small businesses–and excludes tip employees. For anyone that believes that they could live on the federal minimum wage of $7.25 hr in NYC, has not visited NYC for decades.

Anonymous
Guest
Anonymous

I know…I know. Same bullshit different day! libertarians are the first to cry for regulation when their shit is being strong armed away from them. Pay the guys 15.00 an hour you cheap co*ksuckers.

Laura Mullen
Guest
Laura Mullen

Send in ICE. These are obviously illegal aliens. They are now working in the street illegally. They aren’t paying taxes, and they are probably getting welfare, adc, WIC, and earned income credits. They need to be thrown out of the country.

Friend
Member

As a small businessman, raising the minimum wage to $15 an hour equates to three things: I have to do more with less; Go semi or full automation; Or, simply close up the business. During my travel in and out of the country, I noticed that many fast food chain already turn to automation to place their orders. It reduced their workforce by more than 50%. It save the business much on payroll, payroll taxes, and social security and medicare contributions. The only losers are the employees. Those states and cities that passed the pay increase got exactly the opposite… Read more »

Friend dondero sr
Member

all part of the NEW WORLD ORDER .destroying our economy from inside

Joe
Guest
Joe

Universal basic income. I don’t know what the Hell that is but it sounds like just giving people money and something stupid. You want to eat get a job. As for $15 hr that was another brainy idea. Did these people think they would be become rich working at Popeye’s and would then be able to go to a steakhouse and order a $25 steak with a $8 dbl shot of Crown and Coke. Hell your higher pay takes out more rave now less hrs and that steakhouse menu prices just shot up. That steak is now $40 w/the drink… Read more »

Free Speech Forum
Guest

Things fall apart. The world has turned upside down now. Clean-cut, moral Americans who were taught to hate Communism, be hard-working, be responsible, respect free speech, support religious freedom, defend gun rights, oppose warrantless searches, seizures, and torture must be in a state of shock to watch the USA become Socialist. How could Americans go to the same schools and have such different beliefs? You know that you live in the Twilight Zone when Americans support tyranny. The USA is now an immoral bankrupt warmongering police state flooded with illegal immigrants. Americans scream homosexuality should be illegal because the Gestapo… Read more »

Anonymous
Guest
Anonymous

Minimum wage jobs, such as fast food, car washes, etc., were not intended to be a so called living wage. They were for our young people as job entry positions. To get experience in the real world. Or for our seniors as a social security supplement. Not for people to raise families in. Raising the minimum wage as much as they did, just caused job losses, small business closures and automation. Plus it forced the prices up so high for their product…they are becoming unaffordable. Buying fast food for a family of 4 is almost as much as going to… Read more »

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