The Mamdani Era: A New Face for NYC Politics
- Jakob Beller
- 2 days ago
- 3 min read
Inside the “socialist takeover” Wall Street forgot to prepare for
It has been a revolutionary and contradictory end to the year for the politics of the United States. A country that this year has repeatedly been labelled an emerging authoritarian regime has elected arguably one of its most left-leaning socialist mayors ever.
Zohran Mamdani, who began his political career through grassroots campaigning, made his first attempt at becoming New York Mayor this year while serving in the New York State Assembly. Having worked as a housing counsellor focusing on tenant guidance and evictions, explains his political campaigns focus on housing affordability and social justice.
His personal identification as a Democratic Socialist has seemingly united all possible opponents Mamdani has, from Trump to former Democratic candidate Andrew Cuomo. Trying their best to brand him as a radical communist who will destroy one of the country’s most historical and vital cities, it appears that the entire establishment of US politics is terrified of the onslaught Zohran presents.
So let us have a look at what the so-called radical Leninist candidate has been advocating for through a European lens: a lens that has normalised state welfare and the need for social safeguards in society.
The central message and issue Zohran is running on is affordability and housing in an increasingly expensive New York City. Not surprisingly, considering the average rent for a one-bedroom apartment is a little over 4,000 dollars a month. Even as a resident of Amsterdam, these rental numbers are challenging to comprehend, considering that 69 per cent of New Yorkers are renters. It is for this reason that Mamdani has called for a freeze on rent increases.
Public transportation is another central issue and policy area for which he has received considerable attention. With growing fare rates, his campaign has advocated and pushed to make city bus fares permanently free of charge.
Child healthcare is another policy area Zohran plans to make entirely free for children up to six years old, stating that childcare costs are disproportionately large and the second most expensive cost New Yorkers face, after rent.
As appealing as many of these policy ideas sound, they have understandably caused many to question the extent to which New Yorkers can afford to fund the proposals of Zohran, which have been valued at an estimated $7 billion.
From the very beginning of the Mamdani campaign, it was clear that the ultra-wealthy of New York would be the target group to fund his proposals. However, considering the establishment outcry over the disastrous impact his mayorship would bring, his tax increases are not as extreme as many might have expected.
Corporate tax rates are planned to increase to 11.5 per cent. As a reminder, the United Kingdom, the Netherlands, Spain, France, and Germany all have corporate tax rates starting at around 25 per cent.
Beyond this, Mamdani’s campaign has advocated for the city income tax rate to include a new 2 per cent increase for those earning above one million dollars annually. Current income tax rates for those in that income bracket are around 6 to 9 per cent.
Any tax rate, no matter how small, can be profound and have a substantial impact on individuals and companies. Nevertheless, these changes, which many argue are marginal, do not align with the rhetoric that Mamdani’s opponents have used to label his plans as radical communism.
These tax changes alone are expected to bring in an additional estimated $9 billion. Considering the city’s substantial budget of over $ 100 billion, the scale becomes more understandable.
While these proposals can be branded as extreme left or unrealistic, they are relatively standard and moderate when compared to the European context. A part of the world where free healthcare is a norm for many and where social welfare policies form the backbone of services Europeans rely on every day.
With threats to cut federal funding to New York, it is clear that a Mamdani leadership does not fit into Trump’s vision of his ideal America. While many argue these funding cuts would be illegal and unconstitutional, it is fair to say that no future move by this administration would be surprising.
Now it is Mamdani’s time to prove that he can deliver change that preserves the prosperity of New York’s financial hub while enriching the livelihoods of its residents.