There’s a pattern so worn into progressive city governance that you could write the script in advance. A left-wing politician rides into office on promises of “affordability” and “equity,” then immediately implements the exact policies that drive up costs, crush small businesses, and send productive citizens packing for the suburbs. We’ve watched it play out with rent control. We’ve watched it with cashless bail. We’ve watched it with the defund-the-police fantasy — and the crime wave that followed. Every single time, the politicians responsible dust themselves off and move on to the next brilliant idea.
Now New York City has found a fresh way to torch what remains of its struggling private economy — this time in the grocery aisle. The city’s newly elected democratic socialist mayor has apparently decided that what the Big Apple really needs is for the government to start selling you your milk and meat. I wish I were joking.
From the Daily Wire:
Socialist New York City Mayor Zohran Mamdani came under fire Monday after making another promise for his controversial plan for city-run grocery stores, with critics, business leaders, and economists savaging the $70 million taxpayer-funded scheme as an illiterate economic disaster that will drive neighborhood bodegas into bankruptcy.
The backlash came swift and furious just hours after Mamdani took to the stage to proudly pitch a network of five government-owned supermarkets promising a mandatory 30% discount on “essential staples” like meat, produce, cheese, and milk. Brandishing a plantain and hawking a QR code like a late-night pitchman, Mamdani insisted government price controls are the only fix for soaring food prices and corporate “surveillance pricing.”
Seventy million dollars of taxpayer money to open government-run grocery stores selling food at a guaranteed 30% loss. That’s not a policy proposal. That’s economic arson with a receipt.
Republican comptroller candidate Joseph Hernandez did the math Mamdani apparently couldn’t be bothered with. Each proposed store is projected to pull in roughly $5.4 million in annual sales. Slash prices by 30%, and you’re staring at a $1.5 million yearly loss — per location. Year-one cost to taxpayers: approximately $78 million, followed by a permanent annual drain that never, ever stops. Hernandez nailed it: “This isn’t affordability. It’s a tax hike disguised as a discount and a private business killer.”
Hedge fund co-founder Vuk Vukovic spelled out the brutal arithmetic even more plainly. If a store sells food 30% below market rate, only four things can possibly be true: suppliers accept lower prices, workers accept lower wages, taxpayers cover the gap, or the store collapses. There is no fifth option. There is no magic. Just math that Mamdani apparently slept through.
A bodega killer in a suit
Here’s the part that should enrage every small business owner in America. CNBC anchor Sara Eisen noted that grocery stores already survive on margins of just 1-2%. Mamdani’s government stores won’t pay commercial rent. They won’t pay property taxes. They never need to turn a profit. Meanwhile, every bodega, corner store, and independent grocer in the five boroughs shoulders all three burdens — and now they’re supposed to compete against a city that can bleed money forever without consequence.
Mamdani’s defense? His stores won’t sell hot food, beer, or cigarettes, so bodegas have nothing to worry about. Think about that for a second. That’s like claiming you’re not competing with the restaurant down the street because you skip dessert — while handing out their main course for free.
And here’s the real tell. During his campaign, when pressed on what happens if his grocery experiment craters, Mamdani offered this gem: “C’est la vie, then the idea was wrong.” Seventy million dollars of other people’s money, and the man answers with a French shrug. That’s not governance. That’s malpractice.
Soviet shelves in the five boroughs
Venture capitalist Shaun Maguire was blunt: “This is LITERALLY how you destroy an economy. This is the story of the Soviet Union, Cuba, Venezuela, etc. Now coming to NYC!”
Dramatic? Maybe. Wrong? Not even close. A government-run grocery experiment in Kansas City lost nearly $900,000 in a single year while leaving shelves completely bare. Already tried. Already failed. Mamdani wants to replicate it five times over in the most expensive city in America. Genius.
The nonpartisan Citizens Budget Commission weighed in too: “It is hard to see how subsidizing grocery stores — and groceries for everyone who shops there — is the most cost-effective way to increase affordability.” That’s watchdog-speak for “this is absurd.”
The bill always comes due
The victims here won’t be the politicians. They never are. It’ll be the bodega owner pulling sixteen-hour days who suddenly can’t compete with a government printing its own price tags. It’ll be taxpayers funding a permanent money pit dressed up as compassion. And it’ll be ordinary New Yorkers staring at empty shelves when reality finally arrives — because in economics, unlike in politics, you can’t legislate away the laws of supply and demand. Mamdani can try. The math will win.
Key Takeaways
- Mamdani’s $70 million government grocery scheme saddles taxpayers with a permanent, growing bill.
- Subsidized city stores will bankrupt bodegas and independent grocers across all five boroughs.
- Government-run grocery experiments have already failed spectacularly in Kansas City.
- Mamdani’s “C’est la vie” attitude reveals stunning contempt for taxpayer money.
Sources: Daily Wire, Mesabi Tribune