In a city already struggling with rising rent, inflation, and a fragile job market, New York may soon face what one economist calls “a full-blown economic disaster — the kind you don’t recover from.”

That warning came this week after Democratic Socialist candidate Zohran Mamdani unveiled his sweeping “People’s Platform” — a citywide initiative that would include state-managed housing, government-run grocery stores, and a wealth-redistribution tax on top earners.

To supporters, it’s a vision of fairness and justice.
To critics, it’s a socialist time bomb.

And to economists, it’s a direct threat to the financial heartbeat of America’s largest city.

A Plan That “Sounds Good — Until You Read the Fine Print”

The alarm began when Mamdani, a self-described democratic socialist representing Astoria, outlined his plan for a “City-Owned Grocery Network” — a system in which the government would open and operate stores across New York to compete with private chains.

He claimed it would address “food deserts” and combat “corporate price gouging.”

But economists across the political spectrum are warning that it could backfire catastrophically.

“If Mamdani’s policies are put into place, especially at scale,” said Dr. Ronald Shepard, a senior fellow at the Manhattan Institute, “it would be a catastrophic decline in living standards, not just for the rich, but for everyone. As has been the case with every socialist experiment in modern history.”

According to Shepard, the plan’s government-controlled model would undermine private competition, inflate taxpayer costs, and discourage business investment — effectively punishing the same middle-class families Mamdani claims to defend.

“You can’t fix capitalism by breaking it,” Shepard added. “You can’t make food affordable by destroying the economy that produces it.”

The “Cuban Grocery” Model — in Queens?

Mamdani has defended his proposal as a way to “liberate New Yorkers from corporate greed,” citing the need for “public control of essential services.”

But critics point to failed models around the world — from Venezuela’s collapsed state-run food programs to Cuba’s rationed markets — as proof that government ownership only leads to scarcity, inefficiency, and corruption.

“The road to ruin is always paved with good intentions,” said Lydia Grant, a former City Comptroller economist. “New Yorkers should ask one question: If government can’t run the subway on time, why should we trust it to run supermarkets?”

Tax the Rich… or Drive Them Out?

Another key pillar of Mamdani’s platform — a “Fair Share Wealth Tax” on high earners — has drawn sharp warnings from business leaders.

Under the proposal, individuals earning over $500,000 annually would face new taxes, with funds redirected to public welfare, housing subsidies, and “economic equality programs.”

Supporters see it as moral justice.
But opponents see it as economic suicide.

New York has already lost nearly 500,000 residents since 2020, many citing high taxes and cost of living. Experts fear Mamdani’s plan would accelerate that flight — shrinking the city’s tax base and leaving fewer resources for those who need them most.

“You can’t build equality by driving away opportunity,” said Anthony DeMarco, a Brooklyn small-business owner. “If this plan passes, the wealthy will leave, businesses will follow, and the people left behind will pay the price.”

The Political Firestorm on Capitol Hill

Mamdani’s proposal has sparked fierce debate even within his own party.

Moderate Democrats fear his radical policies could alienate centrist voters and hand conservatives a political lifeline in upcoming elections.

“People want fairness, not full-blown socialism,” said one Democratic strategist who asked to remain anonymous. “If this becomes the face of the party, we’re finished in every swing district from Queens to the Bronx.”

Republicans, meanwhile, have seized on the controversy — framing Mamdani’s agenda as proof that “the left has gone off the deep end.”

“New York doesn’t need socialism — it needs sanity,” said Rep. Elise Stefanik (R-NY). “If Mamdani gets his way, the city will look more like Havana than Manhattan.”

“A Catastrophic Decline in Living Standards”

Economists aren’t mincing words about the potential fallout.

The combination of high taxation, centralized planning, and government-run industries could, they warn, cripple New York’s private sector — leading to job losses, rising prices, and decreased innovation.

“Mamdani’s platform would create a perfect storm of economic dysfunction,” said Dr. Alan Novak, a Columbia University economist. “You’d have massive government inefficiency, collapsing productivity, and capital flight. It’s textbook economic decay.”

Even some progressives privately admit that the plan’s scope could be financially unsustainable.

“It’s a beautiful idea in theory,” one aide to a New York City Council member told The Post. “But in practice, it’s like setting fire to your own house to stay warm.”

A Warning from History

Critics point out that Mamdani’s rhetoric echoes earlier socialist movements that promised equality but delivered hardship.

From Britain’s postwar nationalizations to Venezuela’s state-controlled industries, the results have been strikingly similar: fewer goods, lower productivity, and greater dependence on government.

“Every time we’ve seen this play out — whether in Eastern Europe or South America — it ends the same way,” said historian Dr. Charles Morgan. “Rationing, poverty, and power concentrated in the hands of bureaucrats. It’s not justice. It’s just a new kind of inequality.”

Mamdani’s Defense: “It’s About Humanity”

Despite the backlash, Mamdani remains defiant.

“They call it socialism,” he said in a recent interview. “I call it humanity. We’ve tried the billionaire economy for decades — it doesn’t work for ordinary people. It’s time for something new.”

His message resonates with younger voters disillusioned by inequality and corporate power. Polls show growing support for policies like rent caps, universal healthcare, and public grocery networks among New Yorkers under 35.

Still, experts warn that emotional appeal doesn’t make for sound economics.

“Good intentions don’t balance budgets,” said Dr. Shepard. “You can’t redistribute what you don’t produce.”

The Battle for New York’s Future

As election season heats up, the “Mamdani model” has become the defining political fault line in New York — a clash between idealism and realism, compassion and capitalism.

Is it the dawn of a fairer city — or the beginning of an economic collapse?

For now, both sides are digging in. Supporters call it revolutionary. Opponents call it reckless.

But everyone agrees on one thing: if Mamdani’s plan becomes reality, New York will never be the same again.