By Douglas V. Gibbs
New York City Mayor Zohran Mamdani promised greater fiscal responsibility during his campaign for office. He would tax the rich, and they’d stay in town to pay it. He would make the buses free, subways free, housing free, and would create a chain of government-owned grocery stores to make sure the capitalist grocery stores’ higher prices would be challenged by the might of the warmth of collectivism. Everyone applauded, and a majority voted him into office so that Mamdani could bring brighter days to New York City. Except, none of these things have happened, except maybe taxing the rich – and they are escaping in droves.
The socialist grocery stores, in particular, have proven to be quite the difficulty. According to the New York Post, the city-owned store he wants to place in East Harlem will cost taxpayers about four times the amount of money rival markets spend on construction, and would likely run at a loss in perpetuity. You see, Margaret Thatcher’s quote about socialism working until you run out of other people’s money is hitting Mamdani’s plans faster than even conservatives expected.
The daily sales if the market was operating in a normal manner for a privately owned store would take about six years to recoup the cost of construction if there was any profit being made. But, the problem with Mamdani’s socialist idea is that to keep it from being a complete bust he would have to charge prices at least even with or higher than the competitors (so much for cheaper prices) and with the history of projects under socialist style management (or should I say mismanagement), the store would be losing money. Privately owned grocery retailing already operates at a very slim profit margin as it is. The store, according to experts, will likely lose at least $300,000 per year, likely in perpetuity, and that cost will be borne by the taxpayer.
However, taxpayer dollars are dropping as the rich that were supposed to bear the costs are heading out of town. The money is leaving, the costs are going up, and eventually the lot the store is supposed to be built on will likely become something like Gavin Newsom’s train to nowhere in California – overprice, unfinished, and just another ugly relic proving that the Democratic Party’s socialist pipe dreams are nothing but costly failures.
As for the overall loss of money in New York City, since the wealthy are heading for greener pastures the brunt of the cost will be borne by the very people Mamdani claims he is trying to help – those with less in the bank, less in their paycheck (if they even have a paycheck), and who voted for him hoping for free stuff. History reveals a horrid truth. Communism always fails. Folks who put in place communist dictators always end up with less money in their pocket, less freedom, and less services than the elitist power players promise.
— Political Pistachio Conservative News and Commentary
