New York Inches Toward Electing Its First Democratic Socialist Mayor — Business Community Divided

Zohran Mamdani’s progressive platform is gaining ground, sparking hopes among workers and anxiety among corporate leaders

New York City, long considered one of the most expensive cities in the world, may be on the verge of electing its first democratic socialist mayor. After former Governor Andrew Cuomo conceded the Democratic primary, State Assemblyman Zohran Mamdani, 33, emerged as the new frontrunner — pushing an agenda centered on economic justice and affordability.

Mamdani’s campaign stands out for its bold proposals: a four-year rent freeze on stabilized units, fare-free public buses, city-funded grocery stores, and a higher local minimum wage. These ideas have resonated with younger and working-class voters, but they’re also triggering alarm bells across parts of the business community.

Progressive vision or economic risk?

Mamdani has promised sweeping reforms, including:

• A rent freeze affecting over 1 million residents in regulated apartments

• Raising New York City’s corporate tax rate to 11.5%

• Building 200,000 affordable housing units with public funding

• Launching a network of publicly run grocery stores to combat food deserts

• Increasing the minimum wage to $30/hour by 2030

While popular among advocates for economic equity, these measures have drawn criticism from establishment figures. Former Treasury Secretary Larry Summers described Mamdani’s policies as “economically reckless,” comparing them to radical socialist ideologies. He urged the candidate to reaffirm his belief in a market-driven economy.

Business organizations have echoed these concerns. Kathryn Wylde, CEO of the Partnership for New York City, argued that Mamdani’s tax hikes could backfire by forcing companies to raise prices, ultimately hurting the same consumers he aims to protect.

Landlords and property owners are especially worried. Kenny Burgos, president of the New York Apartment Association, warned that long-term rent freezes could result in deteriorating housing stock and discourage investment in older buildings. “If revenues are capped, there’s little incentive for property maintenance or development,” he said.

Labor unions rally behind Mamdani

Despite opposition from business leaders, Mamdani is gaining strong traction among labor groups. The United Auto Workers (UAW) endorsed him early in the race, praising his support for collective bargaining rights and his visible presence on picket lines.

His labor platform includes:

• Expansion of collective bargaining protections

• Industry-specific wage laws modeled after NYC’s fast-food wage mandate

• Gradual increase in the local minimum wage to $30/hour

The UAW described Mamdani as a “true advocate for working people” and called his campaign a break from politics as usual.

Still, the effects of such wage increases are uncertain. In California, where fast-food workers recently saw a wage jump to $20/hour, some businesses responded with job cuts, automation, and higher prices. Research remains mixed, with some studies citing limited impact and others noting signs of strain in small businesses.

“Halal-flation” and public grocery stores

Among Mamdani’s most talked-about policies is a plan to create city-run grocery stores exempt from property taxes and rent. The goal? Lower food prices and restore access in underserved areas hit by supermarket closures.

The policy gained attention after Mamdani visited food vendors and highlighted the soaring costs of city-issued permits — some vendors said they pay up to $20,000 on the black market just to operate legally.

He dubbed the problem “halal-flation,” referring to the inflation affecting halal street food, a staple in NYC’s diverse food scene. His campaign video drew praise from vendors, who appreciated his willingness to hear their struggles directly from behind the cart.

Mamdani backs the Street Vendor Reform Package, a series of city council bills that would expand vendor licenses and provide formal support to small operators. He’s the only candidate to publicly endorse the full package.

Business backlash: Threats to relocate

Not all entrepreneurs are on board. Billionaire grocer John Catsimatidis, owner of Gristedes and D’Agostino chains, told CNN he would consider shutting down his NYC operations if Mamdani is elected.

“We don’t do business with socialists,” he said bluntly, adding that he’d relocate company headquarters to New Jersey. Catsimatidis, a long-time Republican donor, has criticized Mamdani’s approach as anti-business.

A turning point for NYC?

If elected in November, Mamdani would usher in a dramatic political shift for New York City. Supporters see his policies as a long-overdue effort to curb inequality, while detractors warn of an economic experiment that could backfire.

For now, the race remains uncertain. Cuomo has hinted he may return as an independent candidate. Meanwhile, incumbent Mayor Eric Adams is also considering a third-party bid, setting the stage for a historic and unpredictable election.