La Marxista: Mamdani Pledges To Open First City-Run Store With Projected $30 Million Initial Cost
Mayor Zohran Mamdani used his “First 100 Days” speech this week to announce that he has kept his promise to create a chain of city-run stores . . . by pledging to open one store sometime “next year.” According to the New York Post, the city is planning to make an East Harlem location the first store at a cost of $30 million. It will be located in La Marqueta near Park Avenue.
It is not clear if La Marqueta will be renamed La Marxista, but it will follow a long line of failed state-operated and city-operated stores.
Chicago’s mayor, Brandon Johnson, also pledged such city-run stores.
It is notable that the stores received such emphasis by Mamdani.
It is not difficult to set up a grocery store, particularly when you run the city that approves permits and compliance conditions.
It is not even difficult to set up a money-losing store as long as you have a city budget to pay for it.
It is far more difficult to set up an independently sustainable store.
In my book, “Rage and the Republic,” I discuss the rise of support for socialism and communism among young citizens who have no experience or memory with the failures of such systems in the 20th Century. I specifically discuss Mamdani and his policies. These are calls that are likely to increase with the emerging new economy:
With the rise of American socialism, there are new calls for state subsidies and even the establishment of state-run grocery stores in places like Chicago. Past efforts have been colossal failures, including the still-ongoing effort in Kansas City. Over seven years, KC Sun Fresh is gushing money with losses in 2024 at $885,000. The millions lost on this store are on top of the $17 million that the city paid to buy the entire strip mall. By 2025, many of the shelves were entirely bare, while private grocery stores were successfully operating in the area. Despite these failures, there are new calls in other states to create their own state-owned stores. In New York City, socialist mayoral candidate Zohran Mamdani was heralded for his campaign to open up “government-owned, government-operated grocery stores” in 2025. There are also calls to subsidize key industries that are becoming less competitive in the global market—an effort that is unlikely to succeed as jobs are lost to cheap labor markets or automation.
Since the city already owns La Marqueta, it can avoid paying rent.
However, it will lose any rent that could be earned by renting the property to a business.
Mamdani pledged that these will be “stores where prices are fair, where workers are treated with dignity, and where New Yorkers can actually afford to shop at our stores…Eggs will be cheaper, bread will be cheaper, grocery shopping will no longer be an unsolvable equation.”
Of course, that has not worked out that way in other cities.
Governments are not known to be either efficient or competitive. The start-up costs of this first store will consume almost half of the budget for the original cost estimate for all five stores.
Soon, New Yorkers will be subsidizing grocery stores to artificially support the myth of socialism.
In the Soviet Union, state-run grocery stores were the subject of gallows humor. The “reimagining” of grocery stores left shelves bare with only imagined essential products. The most widely told joke spread just before the fall of the Soviet Union:
A man walks into a shop. He asks the clerk, “You don’t have any meat?” The clerk says, “No, here we don’t have any fish. The shop that doesn’t have any meat is across the street.”
As Mamdani demands a 10% property tax to fund his promises of free buses and other socialist programs, he is returning to the same socialist script. Of course, as the University of Chicago’s Milton Friedman noted, “If you put the federal government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand.”