>It took the world decades to conclude that Marxist economics was more Groucho than Karl. Perhaps Mayor Zohran Mamdani’s experiment in socialism in New York City will shorten that instruction time.
Groucho Marx socialism is already on display in the initial rollout of the mayor’s plans for city-run grocery stores. Mayor Mamdani said last week that the city will build its first store in East Harlem to open by 2029. Estimated cost: $30 million.
Even in New York City, that cost is out of this world. The city doesn’t need to build a store from scratch when space can be refurbished and rented. But the mayor wants a gleaming 9,000 square-foot example of what he called the “warmth of collectivism” in his inaugural address.
>
>He wants a store in each of the city’s five boroughs by the end of his term at an estimated capital cost of $70 million. The plan is for the city to select private operators, albeit with what will be strict rules for pricing and wage rates for employees (unionized of course), while subsidizing staples like bread and eggs. In other words, price controls.
>
>One advantage that government-run operations have is that they can operate with subsidized capital, while paying no taxes, and no need to make a profit. The city will pick up any rental costs. This means the Mamdami Marts will be able to undercut prices at the private grocery stores and bodegas in their neighborhoods. This kind of collectivist competition isn’t what the other store owners would call warm.
>
>Meantime, as Mr. Mamdani builds his socialist grocery chain, the city faces huge budget shortfalls. The New York City Housing Authority says it needs $78 billion in repairs, and the Metropolitan Transportation Authority another $69 billion. The city budget is estimated to have a deficit of more than $12 billion through 2027, which is one reason Mr. Mamdani is begging Albany to raise taxes again. A socialist education is expensive.
B3stThereEverWas on
Municipal supermarkets are one of those ideas that sound noble right up until you remember incentives exist. City Hall can undercut prices when taxpayers cover the rent, overhead and inevitable losses. But as for the local independent grocers, bodegas and surrounding market day sellers? They can go and eat cake. A small independent grocer has to make payroll, cover spoilage, absorb theft, and survive on ultra thin margins.
And the best part, the socialist flourish at the heart of it, is that even this grand anti market experiment is still partially privately run once someone has to handle the boring task of, you know….actually selling something.
Peace be to you all, fellow Comrades!
CurtisLeow on
Many grocers are already employee-owned. There’s plenty of competition. I don’t see why local governments needs to compete with people making $30,000 or so a year.
3 Comments
>It took the world decades to conclude that Marxist economics was more Groucho than Karl. Perhaps Mayor Zohran Mamdani’s experiment in socialism in New York City will shorten that instruction time.
Groucho Marx socialism is already on display in the initial rollout of the mayor’s plans for city-run grocery stores. Mayor Mamdani said last week that the city will build its first store in East Harlem to open by 2029. Estimated cost: $30 million.
Even in New York City, that cost is out of this world. The city doesn’t need to build a store from scratch when space can be refurbished and rented. But the mayor wants a gleaming 9,000 square-foot example of what he called the “warmth of collectivism” in his inaugural address.
>
>He wants a store in each of the city’s five boroughs by the end of his term at an estimated capital cost of $70 million. The plan is for the city to select private operators, albeit with what will be strict rules for pricing and wage rates for employees (unionized of course), while subsidizing staples like bread and eggs. In other words, price controls.
>
>One advantage that government-run operations have is that they can operate with subsidized capital, while paying no taxes, and no need to make a profit. The city will pick up any rental costs. This means the Mamdami Marts will be able to undercut prices at the private grocery stores and bodegas in their neighborhoods. This kind of collectivist competition isn’t what the other store owners would call warm.
>
>Meantime, as Mr. Mamdani builds his socialist grocery chain, the city faces huge budget shortfalls. The New York City Housing Authority says it needs $78 billion in repairs, and the Metropolitan Transportation Authority another $69 billion. The city budget is estimated to have a deficit of more than $12 billion through 2027, which is one reason Mr. Mamdani is begging Albany to raise taxes again. A socialist education is expensive.
Municipal supermarkets are one of those ideas that sound noble right up until you remember incentives exist. City Hall can undercut prices when taxpayers cover the rent, overhead and inevitable losses. But as for the local independent grocers, bodegas and surrounding market day sellers? They can go and eat cake. A small independent grocer has to make payroll, cover spoilage, absorb theft, and survive on ultra thin margins.
And the best part, the socialist flourish at the heart of it, is that even this grand anti market experiment is still partially privately run once someone has to handle the boring task of, you know….actually selling something.
Peace be to you all, fellow Comrades!
Many grocers are already employee-owned. There’s plenty of competition. I don’t see why local governments needs to compete with people making $30,000 or so a year.