Democrats in New York City have nominated Zohran Mamdani, a state assemblyman from Queens and member of the Democratic Socialists of America (DSA), for Mayor. Mr. Mamdani delivered a stunning blow to former Governor Andrew Cuomo, a significant pushback against the Democratic Party establishment and moderates inside the party. Mr. Mamdani offered New Yorkers a radically progressive agenda; one that has tried and failed in cities around the world – and even in New York already. His election is also a microcosm of what is wrong with American politics today.
Among Mr. Mamdani’s most radical positions are his lopsided housing policies. He has promised to freeze the rent for tenants in rent-stabilized housing and go after “bad” landlords while also building more housing in the city. Rent freezes have happened in NYC before, and in NYC and everywhere else this policy has been tried it has been a failure. Low-income renters, the very people misguided policymakers are trying to help, bear the brunt of this foolish policy. Building repairs stop, and landlords are disincentivized to rent their properties. Units may be left underutilized, empty, and in deep disrepair.
How then could Mr. Mamdani expect to build more housing? Investments in the city would leave; there would be no incentive for private developers to build units that landlords would be unable to rent at the rate set by the market. The answer certainly can’t be to have the government for a landlord. Government intervention in the housing market has exacerbated the problem.
The government also makes a terrible grocer. That has not stopped Mr. Mamdani from advocating for city-owned grocery stores in NYC. The problem with city-owned grocery stores is that they have always ignored costs, lose money, and fail to meet consumer demands. Unlike a private business, when city-owned grocery stores continuously lose money, they don’t shutter their doors. Instead, city-owned grocery stores use more and more taxpayer dollars as a lifeline to keep the doors to their sparsely-stocked shelves open. This operation destroys wealth.
City-owned grocery stores aim to alleviate the struggles of living in a food desert. However, they do not address the underlying issue, so these stores that have always been doomed to fail to solve the problem. Food deserts exist because of a lack of public safety or the feeling of being safe. There is naturally a market for grocery stores in food deserts, but addressing public safety concerns is how you incentivize investment in these areas. Mr. Mamdani’s inflammatory remarks regarding the New York Police Department and his desire to defund the police leave one to conclude he would start a political battle with the largest municipal police force in the U.S.
Mr. Mamdani’s plan to fund his laundry list of rehashed ideas is to increase taxes in the city. Mr. Mamdani wishes to raise the corporate tax in NYC from 9% to 11.5%, which he estimates will generate $5 billion annually. He would also create a 2% “New York City Income Tax” that targets anyone making more than $1 million per year, which he estimates will generate another $4 billion annually. These tax hikes startle New York business leaders, and could have a detrimental impact on investment.
One in 24 New Yorkers is a millionaire; NYC has the highest concentration of millionaires. While only about 4% of the city’s population, millionaires play a crucial role in NYC’s economy, as they do everywhere else. These business leaders employ people; they spend money in the city; they invest in the city’s infrastructure and help the city to grow. Mr. Mamdani’s tax hikes may see these business leaders leave the city for more business-friendly environments in the south, like North Carolina, Tennessee, Florida, and Texas or out west in states like Nevada or Utah. NYC does not need to bleed people and investments.
Moderate House Democrats on Long Island have already lamented Mr. Mamdani’s nomination. Rep. Laura Gillen stated Mr. Mamdani is “too extreme to lead New York City,” citing “unachievable promises and higher taxes, which is the last thing New York City needs.” What remains to be seen is how the Democratic Party as a whole responds. If NYC embraces degrowth policies that have historically crippled entire nations, it could be terrible for the Democratic brand in the 2026 midterms.
NYC, like every city, changes over time; the NYC from the turn of the 21st century is gone. Political dynasties come and go. Democratic politics have changed drastically, and in the wake of Trump’s shocking election to the Presidency again, the party is struggling to find its way. Basic economic principles, however, stand the test of time. If history has told us anything, Mr. Mamdani’s agenda for the nation’s most prosperous city would be disastrous. Mr. Mamdani’s New York is the City of Pipe Dreams.
