{"id":201696,"date":"2026-04-18T12:18:15","date_gmt":"2026-04-18T12:18:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/201696\/"},"modified":"2026-04-18T12:18:15","modified_gmt":"2026-04-18T12:18:15","slug":"how-capitalists-have-solved-mamdanis-grocery-problem","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/201696\/","title":{"rendered":"How capitalists have solved Mamdani&#8217;s grocery problem"},"content":{"rendered":"<p>There are at least 76,000 supermarkets in the United States. <\/p>\n<p>Most of us probably have a dozen within 10 miles of home.<\/p>\n<p>Nevertheless, leftists are constantly trying to convince us that we need <a href=\"https:\/\/nypost.com\/2026\/04\/17\/real-estate\/mamdanis-nyc-grocery-store-will-cost-4-times-the-normal-price-to-build\/\" rel=\"nofollow noopener\" target=\"_blank\">government-run grocery stores<\/a>.<\/p>\n<p>The latest is New York City Mayor Zohran Mamdani, who has promised to open five city-run markets to <a href=\"https:\/\/nypost.com\/2026\/04\/09\/lifestyle\/top-grocery-staples-have-hit-their-lowest-prices-in-2-years\/\" rel=\"nofollow noopener\" target=\"_blank\">combat \u201cout-of-control\u201d grocery prices<\/a> by getting rid of the \u201cprofit motive,\u201d passing on the savings to consumers.<\/p>\n<p>The first glaring problem with Mamdani\u2019s plan is that the \u201cprofit motive\u201d is the best device to create savings.<\/p>\n<p>Mamdani says he looks \u201cforward to the competition\u201d from the private sector, and \u201cmay the most affordable grocery store win.\u201d<\/p>\n<p>But it\u2019s not really \u201ccompetition\u201d when a government official untethered from the \u201cprofit motive\u201d can use endless taxpayer subsidies to keep his business afloat.<\/p>\n<p>The <a href=\"https:\/\/nypost.com\/2026\/04\/12\/us-news\/nycs-first-city-owned-grocery-store-under-lefty-mayor-mamdani-to-open-in-east-harlem-report\/\" rel=\"nofollow noopener\" target=\"_blank\">Mamdani Mart in East Harlem<\/a>, for instance, will be built on land already owned by the city, and it\u2019s still going to cost $30 million, if government estimates are right \u2014 a rarity.<\/p>\n<p>In the real world, these exorbitant costs would be passed on to consumers.<\/p>\n<p>In the Mamdani world, the cost is tacked onto an already <a href=\"https:\/\/nypost.com\/2026\/02\/17\/us-news\/zohran-mamdani-to-unveil-122b-budget-fueled-by-proposed-nyc-property-tax-hike\/\" rel=\"nofollow noopener\" target=\"_blank\">$5.4 billion budget deficit<\/a>.<\/p>\n<p>To put the cost into context, a new Aldi costs around $1.5 million to $3 million on average to construct, not including the cost of the land.<\/p>\n<p>Other chains might cost around $3 million to $5 million.<\/p>\n<p>Aldi keeps costs as low as possible because it\u2019s governed by the profit motive.<\/p>\n<p>An Aldi can be built in as little as seven weeks; Mamdani\u2019s supermarket won\u2019t be open until 2029 \u2014 maybe.<\/p>\n<p>New York City could hand $30 million to any major supermarket chain, and it would get three or more self-sustaining retail stores up and running within a year.<\/p>\n<p>Then again, if Democrats could just stop placating their corrupt union donors by blocking Walmart from opening stores in the city, it would cost nothing.<\/p>\n<p>When the <a href=\"https:\/\/nypost.com\/2025\/08\/12\/us-news\/city-owned-missouri-market-akin-to-zohran-mamdanis-nyc-grocery-store-proposal-shuts-its-doors\/\" rel=\"nofollow noopener\" target=\"_blank\">city-run KC Sun Fresh<\/a> supermarket opened in Kansas City, it was supposed to help alleviate local \u201cfood deserts.\u201d<\/p>\n<p>At first, it was run by a private grocer \u2014 but soon after, a nonprofit community organization took over.<\/p>\n<p>By 2024, the supermarket was losing nearly $1 million a year and averaging around 4,000 shoppers a week, down from 14,000.<\/p>\n<p>Those who showed up were confronted with empty shelves, unchecked shoplifting and barely any healthy produce. It closed in 2025.<\/p>\n<p>\t\t\t\t\t\t\tGet opinions and commentary from our columnists\t\t\t\t\t\t<\/p>\n<p class=\"inline-module__cta\">\n\t\t\t\t\t\t\tSubscribe to our daily Post Opinion newsletter!\t\t\t\t\t\t<\/p>\n<p>\t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n<p>And when political considerations are your concern rather than profit motives, you end up building retail establishments that aren\u2019t needed.<\/p>\n<p>Within a mile of the site of Mamdani\u2019s coming $30 million tax-funded supermarket in Harlem are at least a dozen grocers, everything from an Aldi\u2019s to a Whole Foods.<\/p>\n<p>It\u2019s less than a nine-minute walk to a big supermarket from the proposed site, and a three-minute walk to a fresh produce market.<\/p>\n<p>New Yorkers should demand their government work with the efficiency of a supermarket, not the other way around.<\/p>\n<p>If Mamdani wants more supermarkets in Harlem, he should work to cut the bureaucratic hell that potential business owners are forced to traverse to open a store.<\/p>\n<p>New York City is already home to one of the highest corporate tax rates in the country, yet Mamdani supports an effort to <a href=\"https:\/\/nypost.com\/2026\/03\/30\/us-news\/nys-lawmakers-eye-corporate-tax-hike-to-bail-out-mamdani-nyc-budget-deficit\/\" rel=\"nofollow noopener\" target=\"_blank\">significantly increase them<\/a>.<\/p>\n<p>During the Cold War, the American supermarket was held up as the model of prosperity.<\/p>\n<p>When the Soviet Union was petering out in 1989, Boris Yeltsin toured a Randalls in Houston, resulting in the famous pictures of the wide-eyed future Russian president perusing the wide variety of food available to average people living under capitalism.<\/p>\n<p>Yeltsin said \u201cthere would be a revolution\u201d in the Soviet Union if people saw the abundance.<\/p>\n<p>\u201cEven the Politburo doesn\u2019t have this choice,\u201d he said. \u201cNot even Mr. Gorbachev.\u201d<\/p>\n<p>Today, grocery chains are often depicted as predatory and monopolistic endeavors by Marxists like Bernie Sanders and Elizabeth Warren.<\/p>\n<p>It\u2019s easy to rile up consumers who are agitated by inflation.<\/p>\n<p>But supermarkets have some of the lowest profit margins of any business in the country, usually around 1% to 3%.<\/p>\n<p>Successful chains stay competitive by adapting quickly, leaning on high-volume, high-turnover sales, cost-cutting and intricate supply chains.<\/p>\n<p>Government isn\u2019t exactly nimble.<\/p>\n<p>There\u2019s no doubt that living in dense urban areas is expensive.<\/p>\n<p>Many in the media depict Mamdani\u2019s plan as a harmless effort to help poor people deal with the vagaries and inequities of capitalism when few affordable grocery stores are nearby.<\/p>\n<p>But in the long run, the government subsidies will make groceries more expensive, crowding out value-producing \u201ccompetitors.\u201d<\/p>\n<p>And American leftists will have to relearn these most basic and obvious lessons of history and economics.<\/p>\n<p>David Harsanyi is a senior writer at the Washington Examiner. X: @davidharsanyi<\/p>\n","protected":false},"excerpt":{"rendered":"There are at least 76,000 supermarkets in the United States. Most of us probably have a dozen within&hellip;\n","protected":false},"author":2,"featured_media":201697,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[30065,9,24,55,54,56,299,21041,1211,9936,82],"class_list":{"0":"post-201696","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york-city","8":"tag-capitalism","9":"tag-new-york","10":"tag-new-york-city","11":"tag-new-york-city-headlines","12":"tag-new-york-city-news","13":"tag-ny","14":"tag-opinion","15":"tag-profit","16":"tag-socialism","17":"tag-supermarkets","18":"tag-zohran-mamdani"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/201696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=201696"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/201696\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/201697"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=201696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=201696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=201696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}