$15 Minimum Wage - Real World Results

One of the problems with progressives is that they often have a hard time seeing the impact of their policies. They rarely do a detailed look back to see how their policies actually play out in the real world.

Anyway, I can across a great video on $15 minimum wage in NYC and how it has completely messed up the car wash industry. The video is about 10 minutes long, but it really does a great job explaining how unionization and minimum wage hikes changed the industry.

For those that don't watch the video, here is a synopsis:

Car washes were labor intensive. You bring your car in and an army of guys would wash / dry / clean the car. Obviously, these workers weren't making a lot of money.

Some progressive decided to unionize the car wash workers and get passed a $15 minimum wage. So what happened?

Most of the labor intensive car washes closed and the owners just automated. An owner in the video explains what he used to do with 35 employees, he now does with 3 because of automation. In addition, the expense of automation has made it harder for new car wash entrants to get into the business due to the upfront capital costs.

Many of the workers who used to work at the car washes are upset as they don't believe the minimum wage helped them since they now have no jobs.

In addition, the laws also created a black market. Many of the workers who lost their jobs because of the $15/hr minimum wage now work the black market doing illegal car washes since they can't get hired at legal car washes now. They basically wash cars on the street.

Anyway... figured it would be a good discussion. I see this kind of stuff across a lot of industries.

honestly stop trying to talk people into slavery unless you're the one who's willing to work for that wage you shouldn't be telling anyone else to work for it

inequality.org...

The minimum wage reached its (inflation-adjusted) historic high in 1968, when it was raised from $1.40 to $1.60 per hour. Adjusted for inflation using the BLS online inflation calculator that would come to $10.55 per hour in 2012 dollars.

Using 1968 as our benchmark for the minimum wage implies that low-wage Americans today should be making just as much as low-wage Americans were making 44 years ago. That benchmark is — frankly — ridiculous.

A better way to update the minimum wage is to benchmark it to personal income growth in the economy as a whole.

Per capita real personal income excluding current transfer receipts — that is, the personal income earned in the economy, excluding Social Security and other government programs, adjusted for inflation — has grown by 100.6% since 1968.

In other words, the NELP has it too low — by half. If our standard for minimum wages had kept pace with overall income growth in the American economy, it would now be $21.16 per hour.

here's what I think would wake you up, everyone who works in the supply chain should go on strike and refuse to work for less than $25 an hour. when you shelves stop getting stocked your perspective will change on the value those jobs provide to you and your family

and remember, if you're not willing to accept something you shouldn't be talking others into doing what you yourself wouldn't be doing

a reply to: Edumakated

I see it seeping into many different industries. Lately i've noticed a lot of people selling homemade food on FB marketplace.

a reply to: Edumakated

also I would like to point out anyone who's working for less than minimum wage right now is literally a slave, that's a joke and how dare you try to talk people into accepting less

the hell is wrong with you??

imagine making less than minimum wage and working 40+ hours a week and only taking home $200... are you out of your mind? stop the fake arguments

Watch the video because it is obvious you didn't...

This isn't about talking anyone into a low wage job. As the video explained, many of these car washes used a lot of low skilled labor because they perform better than machines. However, the labor itself was not worth $15/hr.

Once the minimum wage kicked in, the ROI on investing in automation now made sense and most of the workers lost their jobs. As one owner stated, he had 35 employees, now he has 3. So yeah, those 3 employees are now making $15/hr but what about he other 32 employees who might have been making $9 or $10/hr?

Those employees now find themselves hustling illegal car washes because they can't get hired.

Supply and demand is what drives wages. Nothing else. You can intefere all you want, but at the end of the day, the supply and demand curve is going to win out.

originally posted by: toysforadults

here's what I think would wake you up, everyone who works in the supply chain should go on strike and refuse to work for less than $25 an hour. when you shelves stop getting stocked your perspective will change on the value those jobs provide to you and your family

That's the easiest way to get automation faster. A mandated $25/hour means automation is a no-brainer.

a reply to: Edumakated

Nope.

Maybe for a 12 year old less than 7.25 an hour is good but anyone over 15 should be making more for ANY labor produced. Automation is going to replace them REGARDLESS.

You are not making a good argument for slavery. You should stop trying to talk people into accepting lower wages.

a reply to: schuyler

it's already being automate regardless. stop trying to talk people into accepting less.

oh btw if the supply chain shuts down tomorrow you're out of food in 3 days, you tell me how valuable that labor is when you don't have any food to eat

a reply to: toysforadults

So when these people become dependant on the gov't they become what exactly?

a reply to: TheLead

who the people making less money? if you make less money you're already relying on charity where is your brain at???

a reply to: toysforadults

No the people now making NO money.

a reply to: TheLead

making no money and taking home 150 a week is the same damn thing you will require government assistance regardless and government assistance in most states is worth 21+ an hour

stop trying to talk people into working for less is a disgusting argument

originally posted by: toysforadults

here's what I think would wake you up, everyone who works in the supply chain should go on strike and refuse to work for less than $25 an hour. when you shelves stop getting stocked your perspective will change on the value those jobs provide to you and your family

and remember, if you're not willing to accept something you shouldn't be talking others into doing what you yourself wouldn't be doing

Can I mow your lawn for 200 bucks? That is what I think I'm worth, my time...

a reply to: Xtrozero

does it take you 40+ hours to mow my lawn?

you see how your argument doesn't make any sense?

here's how we solve this problem

end ALL social welfare programs and the nearly 100 million people in this country on some form of assistance will burn this place to the ground

no social welfare = NO LOW WAGES

problem solved

Toysforadults is demonstrating exactly what I meant in my OP when progressives can't accept that their policies can have unintended consequences. Instead of addressing the points in the OP and video which show conclusively how an industry was screwed up by politicians interfering with wages, he just keeps having emotional outbursts.

Wages (Price) is where supply and demand intersect. Basic economics. You cannot arbitrarily raise wages without screwing up either supply or demand. Sometimes the effect is minor other times it can eliminate demand for jobs entirely kind of like in the car wash example.

Other examples are full service gas stations, elevator operators, theater ushers, etc.

a reply to: toysforadults

Persuading businesses to ditch their employees at a faster rate will help noone in the end.

originally posted by: toysforadults
honestly stop trying to talk people into slavery unless you're the one who's willing to work for that wage you shouldn't be telling anyone else to work for it

inequality.org...

The minimum wage reached its (inflation-adjusted) historic high in 1968, when it was raised from $1.40 to $1.60 per hour. Adjusted for inflation using the BLS online inflation calculator that would come to $10.55 per hour in 2012 dollars.

Using 1968 as our benchmark for the minimum wage implies that low-wage Americans today should be making just as much as low-wage Americans were making 44 years ago. That benchmark is — frankly — ridiculous.

A better way to update the minimum wage is to benchmark it to personal income growth in the economy as a whole.

Per capita real personal income excluding current transfer receipts — that is, the personal income earned in the economy, excluding Social Security and other government programs, adjusted for inflation — has grown by 100.6% since 1968.

In other words, the NELP has it too low — by half. If our standard for minimum wages had kept pace with overall income growth in the American economy, it would now be $21.16 per hour.

here's what I think would wake you up, everyone who works in the supply chain should go on strike and refuse to work for less than $25 an hour. when you shelves stop getting stocked your perspective will change on the value those jobs provide to you and your family

and remember, if you're not willing to accept something you shouldn't be talking others into doing what you yourself wouldn't be doing

Now. THERE'S a crock of sh*t.

Here's the deal.

The thing that leftist "equality of outcome" people just can't seem to grasp is the fact that there are people, let's call them "Employers", for lack of a better term.

These people are absolutely DESPERATE for real "Hard Chargers". Unfortunately, they are forced to hire useless young people who don't understand that despite what they think of themselves, and their self-worth, they are NOT special, or wonderful, or even worth a single turd.

Let me please to 'splain.

The "REAL" world is not what you were obviously taught to believe.

Your parents LIED to you.

You are NOT special. You are ABSOLUTELY and COMPLETELY WORTHLESS in a competitive job market.

If you can't hack it, I hate it for you.

I REALLY do.

But while YOU are cleaning toilets in eastern Europe, because you don't have the stuff, there is a motivated hard-ass that IS willing to put in sweat and blood, and you're left cleaning porta-johns because,m to be honest, you just can't hack it.

I'm sorry, sweety, but YOU are the master of your destiny.

You either hack it, or you don't.

Eventually Darwinism wins out.

I'm sorry to have to break it to you Puddin', but in the real world, you ain't sh*t, until you SHOW me why you ARE sh*t.

You win,or you lose.

Either way, YOU are the one responsible for it. Moan, pussificate, and whine all you want.

Otherwise, put up, or SHUT up.

Because, honestly, you ain't showed me SH*T!!!

Take responsibility for your destiny, or go away and shut the f*ck up.

Jesus Christ...Are you SERIOUS?

Incredible. A thread actually telling people: hey people, you don't want to make more money, that's stupid. Everyone knows less money is better!

ATS has no bottom.

Of course, no one is going to make the connection that the douche owner exploited 35 employees and it was great for him. When protections for workers went in he went auto, at his choice, because he could not exploit workers any more.

With all of that, you want to tell people they're dumb for wanting higher wages.

originally posted by: Mahogany
Incredible. A thread actually telling people: hey people, you don't want to make more money, that's stupid. Everyone knows less money is better!

ATS has no bottom.

Of course, no one is going to make the connection that the douche owner exploited 35 employees and it was great for him. When protections for workers went in he went auto, at his choice, because he could not exploit workers any more.

With all of that, you want to tell people they're dumb for wanting higher wages.