New York City can’t afford Mamdani’s campaign promises

Zohran Mamdani has won New York City’s mayoral election. The self-described democratic socialist has promised New Yorkers a cornucopia of policies, programs, and services. There’s ample reason to believe that his plans will backfire and that New York taxpayers won’t be able to cash the checks that Mamdani is writing on their behalf:

1. Freezing the rent: Mamdani’s signature campaign promise was to freeze the rent for more than 2 million tenants living in rent-controlled housing. But the city’s cost of living has grown unabated despite decades of rent control—which, coupled with restrictive zoning, has made the city’s housing shortage worse.
2. $30 minimum wage: There’s good reason for New Yorkers to be skeptical of Mamdani’s plan to raise the minimum wage. When the city raised the minimum wage to $15 an hour in 2018, the predictable result was increased unemployment and black markets in labor. Nearly doubling the current minimum wage of $16.50 by 2030 would produce similar consequences.
3. “Free” buses: On the campaign trail, Mamdani promised to eliminate the fare on every city bus to make them “fast” and “free.” The plan would cost taxpayers $600 million–$800 million annually and likely result in slower speeds, which is what happened when the city piloted five fare-free bus lines in 2023 and 2024.
4. Government-run grocery stores: Mamdani has proposed not-for-profit, government-run grocery stores—subsidized to the tune of $140 million a year—to reduce prices at the checkout counter. New York’s grocery stores, like others across the country, operate on razor-thin margins. The profit motive isn’t to blame for high grocery prices; inflation and supply chain disruptions are.
5. “Universal” day care: To prevent an exodus of families struggling to afford child care, Zohran wants to offer free child care to children 6 weeks to 5 years old. Mamdani’s state-run day cares would cost taxpayers—including parents who work part-time or stay at home to take care of their children themselves—an estimated $6 billion annually.
6. $5 billion corporate tax: Naturally, Mamdani promises that you won’t pay for his multi-billion dollar programs—greedy corporations will! If Mamdani manages to convince state lawmakers to increase the city’s corporate tax rate from 7.5 percent to 11.5 percent, New Yorkers should expect companies to reduce salaries, benefits, and headcount to remain in business. Some might opt to abandon the city altogether, leaving the taxpayers of the People’s Republic of New York to foot the bill for their socialist utopia.

Only time will tell if Mamdani can actually pass his socialist schemes. But if they are implemented, they’re likely to drive producers out of the city, make goods and services more expensive, and reduce the revenue available to fund the largesse he promises.