❓WHAT HAPPENED: New York Democratic mayoral nominee Zohran Mamdani has proposed socialist grocery stores, claiming they can be funded by redirecting city subsidies from private grocery stores.
👤WHO WAS INVOLVED: Zohran Mamdani, New York City’s Economic Development Corporation, and private grocery stores participating in the FRESH program.
📍WHEN & WHERE: New York City, during Mamdani’s mayoral campaign.
💬KEY QUOTE: “We will redirect city funds from corporate supermarkets to city-owned grocery stores whose mission is lower prices, not price-gouging.” – Zohran Mamdani
🎯IMPACT: Mamdani’s proposal is based on a misunderstanding of city subsidies, which would lead to mass fiscal mismanagement if implemented.
Zohran Mamdani, the New York Democratic mayoral nominee, has defended his proposal for socialist grocery stores by stating that they could be funded by cutting city subsidies to private grocery stores. However, his claim is based on a misinterpretation of the city’s current grocery subsidy program, as first revealed by reporter Tim Carney.
Mamdani has repeatedly cited a figure of $140 million, claiming it represents the amount the city spends on subsidizing private grocery stores under the Food Retail Expansion to Support Health (FRESH) program. He has proposed redirecting half of this amount to fund his socialist grocery store initiative, which he estimates would cost $60 million.
The FRESH program, however, does not involve direct city spending of $140 million. Instead, it provides tax breaks and regulatory relief to grocery stores that invest in underserved areas, known as “food deserts.” Over the last six years, the program has cost the city approximately $20 million in waived tax revenue, rather than expenditure, averaging just $3.3 million per year. Furthermore, the $140 million figure cited by Mamdani refers to private investments made by grocery stores participating in the program, not government spending.
In a video, Mamdani argued, “We will redirect city funds from corporate supermarkets to city-owned grocery stores whose mission is lower prices, not price-gouging.” However, his misunderstanding of the FRESH program’s structure raises humiliating questions about the plan. Carney explains, “So, this program would take 42 years to cost the city the $140 million that Mamdani says “the city is set to spend” on it.”
This misrepresentation underscores a broader concern with Mamdani’s proposal: it appears to rely on a socialist framework that assumes private investment can be treated as public funds. Critics argue that such an approach would lead to fiscal mismanagement and actually undermine the city’s efforts to address food accessibility through public-private partnerships. This scenario would not just see government grocery stores with empty shelves, like North Korea, but also skew the market against private companies no longer incentivized to supply groceries to certain areas, leaving entire communities in new food deserts.
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