The $15 Minimum Wage Is Turning Hard Workers Into Black Market Lawbreakers

[Chris]

Sometimes laws are worth the paper they're written on, sometimes the best of intentions have unintended consequences.

The $15 Minimum Wage Is Turning Hard Workers Into Black Market Lawbreakers

As Reason chronicled in a feature story in our July 2016 issue, the real world impact of the unionization drive, the lawsuits, and the $15 minimum wage has been mainly to push car washes to automate and to close down.

Two years later, there are more unintended consequences. The $15 minimum wage is fostering a growing black market—workers increasingly have no choice but to ply their trade out of illegal vans parked on the street, because the minimum wage has made it illegal for anyone to hire them at the market rate.

The minimum wage is also cartelizing the industry: Businesses that have chosen to automate are benefiting from the $15 wage floor because outlawing cheap labor makes it harder for new competitors to undercut them on price and service.

As a sequel to the 2016 article, this video takes an in-depth look at the real world consequences that result when politicians interfere with a complex industry they don't understand, enabled by media coverage that rarely questions the overly simplistic tale of exploited workers in need of protection.

[Peter1469]

The $15 dollar minimum wage also turns full time employees with benefits into part time employees with no benefits.

[Captdon]

I can go downtown and go under the bridge and get people for 5 bucks an hour to cut the grass in my neighborhood. I wouldn't, of course, but I could and everyone would be happy.

[Mini Me]

"A rising tide lifts all boats"

Chris, but your tide recedes and never comes back!
Once again you show that you are on the side of the 1% Elite.

[Chris]

"A rising tide lifts all boats"

Chris, but your tide recedes and never comes back!
Once again you show that you are on the side of the 1% Elite.

All caused by do gooders like yourself.

The 1%ers? Midway throught the video you obviously failed to watch, a car washer is told but the union is here to protect you. He sponds, protect us from who? Really, you ought to watch.

[donttread]

Sometimes laws are worth the paper they're written on, sometimes the best of intentions have unintended consequences.

The $15 Minimum Wage Is Turning Hard Workers Into Black Market Lawbreakers

I can remember friends who worked under the table back in the 70's and 80's when the going rate was 3 something an hour.

[Chris]

I can remember friends who worked under the table back in the 70's and 80's when the going rate was 3 something an hour.

Under the table is not taxed.

[Peter1469]

Under the table is not taxed.

That's why they were doing it.

[donttread]

Under the table is not taxed.

I thought that was the point. Do the Van guys report there income?

[Tahuyaman]

The $15 dollar minimum wage also turns full time employees with benefits into part time employees with no benefits.

In seattle it's resulted in the average minimum wage worker a reduction of $150.00 to $200.00 a month in pay. When one is in a minimum wage job, that's a significant amount.