Grocery CEO Warns Businesses Will Flee NYC if Socialist is Elected As Mayor

The election of a Democratic socialist as NYC mayor could trigger a massive business exodus.

Key Points

Zohran Mamdani, Democratic socialist, is leading the NYC mayoral race with proposals for city-run grocery stores.
John Catsimatidis, CEO of Gristedes, threatens to close stores in NYC if Mamdani wins.
Mamdani’s initiatives could lead to higher taxes on businesses and wealthy New Yorkers.
Critics warn of potential corporate exodus and job losses due to proposed tax hikes.
Mamdani’s tax and spending proposals face strong opposition from current government leaders.

Mamdani’s Controversial Proposals

Zohran Mamdani, a Democratic socialist mayoral candidate, proposes riveting changes for New York City, including free public services and city-run grocery stores. His radical approach aims to economically overhaul the city by eliminating corporate subsidies, redirecting funds towards public projects. However, this vision has not been welcomed by the business community and has resulted in potent threats from business leaders.

John Catsimatidis, CEO of Gristedes Supermarkets, a significant player in NYC’s grocery landscape, opposes Mamdani’s plans. Catsimatidis is contemplating not only closing his stores but relocating his conglomerate, Red Apple Group, to nearby New Jersey. This drastic step highlights the extreme measures businesses might take if Mamdani’s ideas become reality.

Financial Impacts and Critic Reactions

Mamdani intends to raise $10 billion through increased taxes on businesses and wealthy New Yorkers, an idea that has been met with significant resistance. Opponents argue these measures could push businesses to seek refuge elsewhere, damaging New York City’s economy. Additionally, these proposals face legal and logistical challenges, including the necessity of state approvals.

John Catsimatidis said, “We may consider closing our supermarkets and selling the business. We have other businesses. Thank God, we have other businesses.” – Source

Governor Kathy Hochul and other government officials oppose tax hikes on high-income earners, further complicating Mamdani’s campaign promises. Former Governor David Paterson pointed out the unrealistic nature of Mamdani’s plans by stating, “Nobody told him there’s no such thing as Santa Claus.” Doubts about Mamdani’s understanding of city governance add fodder to the mounting criticism.

Business Exodus: An Imminent Threat?

Business leaders warn that implementing Mamdani’s socialist policies would create a hostile economic environment. Critics label him “anti-business,” deterring potential investors from coming to New York City. Some view this divisive political climate as reminiscent of Bill de Blasio’s tenure, asserting that Mamdani’s initiatives would exacerbate existing challenges like poverty and crime instead of resolving them.

John Borthwick concurs with this sentiment, adding, “He’s a very nice charming human who I think who has absolutely no idea what it would take to run a city government.” – Source

The corporate community fears a “disastrous” outcome if Mamdani wins. Concerns over job losses and economic stagnation proliferate, inducing hesitation among prospective businesses and residents. Mamdani’s intentions, although well-meaning to some, lack realistic grounding, with critics asserting that investors, business owners, and even officials are bracing for a grim future should he ascend to power.