By The Wall Street Journal Editorial Board
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.
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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.
Neighborhood bodegas and private grocery stores will be hit hard by the government-run Mamdani Marts.https://t.co/VjgcvWVTgG
— Wall Street Journal Opinion (@WSJopinion) April 20, 2026
