New York City is about to test Mamdani’s progressive economic vision

With nearly 9 million residents and the world’s largest financial hub, New York City is about to test a progressive economic vision under Mayor-elect Zohran Mamdani.

Proposals such as free buses, city-owned grocery stores and rent freezes have already rattled Wall Street, prompting sharp criticism from Mamdani’s critics. The clash underscores a widening divide between progressive ambitions for the city and the financial sector that has long powered its economy.

Affordability sits at the center of Mamdani’s agenda as he prepares to run America’s largest city. Here’s a breakdown of how he plans to address it.

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Mamdani has committed to creating a "network of city-owned grocery stores focused on keeping prices low, not making a profit."

"Without having to pay rent or property taxes, they will reduce overhead and pass on savings to shoppers. They will buy and sell at wholesale prices, centralize warehousing and distribution, and partner with local neighborhoods on products and sourcing," Mamdani has promised. 

The mayor of New York City has control over city-run programs, so he can accomplish this goal by securing New York City Council approval.

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Billionaire John Catsimatidis, owner of Gristedes and D’Agostino’s, the largest independent supermarket chain in New York City, has previously said he would consider moving his corporate office out of New York following a Mamdani win.

Atlanta Mayor Andre Dickens has launched a similar pilot program, opening a city-owned grocery store in a neighborhood long classified by the U.S. Department of Agriculture as a low-income, low-access food desert.

Mamdani has vowed to "permanently eliminate the fare on every city bus and make them faster by rapidly building priority lanes, expanding bus queue-jump signals and dedicated loading zones to keep double parkers out of the way."

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This proposal would require coordination with the Metropolitan Transportation Authority (MTA). MTA is a state-run agency, which the mayor of New York City does not have direct control over. 

According to City & State New York, Mamdani's free bus fare promise would require an additional expense, possibly more than $700 million. It's unclear how Mamdani plans to pay for the additional fee.

Additionally, Mamdani has said he wants to raise the minimum wage to $30 an hour in the next four years.

"After that, the minimum wage will automatically increase based on the cost of living and productivity increases," Mamdani claims on his campaign website. 

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By allowing the City Council to create its own minimum wage law, Mamdani has proposed a way to raise the minimum wage in New York City without the state's approval. But a state-level increase is unlikely.

Mamdani has also campaigned to provide every New York family that has a child up to 5 years old with free childcare. 

It is unclear how he will finance this proposal, which experts estimate could cost billions of dollars annually. 

He has previously floated a tax increase on the wealthiest New Yorkers and corporations to pay for the increased services, which would require state-level approval. 

Mamdani has pledged to freeze rents for tenants in rent-stabilized apartments and expand affordable housing using city resources.

While a rent freeze may sound like a straightforward fix to New York City’s affordability crisis, housing experts warn it could backfire by discouraging investment and pushing rents higher in non-stabilized units.

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New York Apartment Association CEO Kenny Burgos said the policy could deter developers. "I don’t know any investor or builder who would want to build in a city where the mayor is threatening to cap revenues," Burgos told Fox Business.

Ed Elson, a business analyst and co-host of the "Prof G Markets" podcast, echoed that concern, saying rent freezes undermine supply. "Paradoxically, they disincentivize construction, which causes rents elsewhere to rise," he said, calling the policy "too good to be true."

Mamdani said he would fund his programs through a "revenue plan" that would "raise the corporate tax rate to match New Jersey’s 11.5%, bringing in $5 billion. And he will tax the wealthiest 1% of New Yorkers, those earning above $1 million annually, a flat 2% tax."

While Mamdani has certainly done the math, a plan like this requires approval from the state legislature and the signature of the governor. 

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New York Gov. Kathy Hochul has voiced her opposition to tax hikes, which could create some hurdles for Mamdani's marquee campaign promise.

FOX Business' Daniella Genovese contributed to this report.