Economists and business leaders are warning that New York City mayoral candidate Zohran Mamdani’s plan for city-owned grocery stores could backfire — big time.
“You don’t lower grocery bills by having government-run stores,” said Ryan Bourne of the Cato Institute. “They don’t compete. They don’t innovate. They waste money and dodge accountability.”
Bourne slammed the idea as “political hubris,” arguing that private grocers operate on tight margins and survive only by delivering value. Government stores, he warned, won’t face those same pressures.
E.J. Antoni from the Heritage Foundation agreed, saying the math just doesn’t work. “You can’t undercut the private market and make money. If everyone flocks to the cheaper stores, shortages are inevitable.”
Mamdani, the surprise winner of the Democratic mayoral primary, says his plan will cut costs by avoiding rent, buying wholesale, and partnering with local farms. He wants to fund it by redirecting $140 million in grocery tax breaks.
His proposal includes five public stores — one per borough — with a $60 million startup cost. The socialist candidate insists it’s about making food affordable for all.
But supermarket billionaire John Catsimatidis isn’t buying it. “If New York’s going socialist, I’ll shut down or sell off my Gristedes stores,” he said. “It’ll crush private grocers like me.”
Wall Street heavyweights are also pushing back. Bill Ackman blasted Mamdani’s economic ideas and pledged to support a rival candidate. “Socialism has no place in the financial capital of our country,” he warned.
Other real estate and finance moguls echoed the concern. Jeff Gural hinted at reviving Mayor Eric Adams, while hedge fund manager Dan Loeb called it “hot commie summer.”
Former Trump advisor Larry Kudlow wrapped it up: “Young people will wake up when they lose their jobs. This guy will financially bankrupt us.”