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.