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Cuomo defeated in NYC Democratic Mayoral Primary

Expect intimidations at polling stations in support of Adams by members of the the biggest gang in NY, aka the NYPD.
 
Darat said:
It's a strange one - if it is too expensive for most people than despite groceries technically being available it is in fact a food desert for those that can't afford it.

I would have thought looking at what keeps the prices high would be a better approach - if it is the business rates/taxes then perhaps reducing those would be a more effective approach rather than having to build up supply chain etc. for the new city businesses. The local authority could look at incentivising tax reductions based on what the store stocks and sells.
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That would work except the stores would be able to continue to engage in rampant profiteering.
 
Gulliver Foyle said:
That would work except the stores would be able to continue to engage in rampant profiteering.
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Hey, give it time, we've (or his orangeness the King, credit where credit is due) only just discovered the concept of groceries, they obviously need time to adapt.
 
Reports say Cuomo is staying in the race.

Adams, Cuomo, Momdani will split the Dem vote. And Sliwa wins?
 
I think there's a risk of overinterpreting Mamdami's win. Coumo ran a terrible campaign that played into most of the negatives of the Dems. Being out of touch elites with a sense of privilege, his apparently clear belief that he should just be anointed mayor being the privilege. Of course he alls has all the other baggage. The folks I listen too on this all agree that Mamdami ran a great campaign. It was a crowded race with a dozen candidates, Mamdami lead with 43% of the vote. It was a primary in one of the most left constituencies in the US.

I'm not sure any of this will translate to success elsewhere.

Mamdami also campaigned on a number of things he can't do as mayor and some he in theory can but probably won't be able to. The things I know he campaigned on are generally bad ideas.

  • Rent freeze, there aren't many policies that have been tried as much with as little success as various kinds of rent control but sure go ahead.
  • Government run groceries, if they actually succeed they'll just drive out competition. Nobody can compete with a business that's got access to tax money. If that happens, NY will really be a food dessert. Probably won't happen but I love to see them try it.
  • Free buses, from what I gather, only about half the passengers pay anyway but it will cost the Transit a lot of money which they'll have to get from somewhere. Also, the Mayor has no authority over NY transit.
  • Minimum wage, Mayor doesn't have any authority. I realize the data is pretty mixed on the actual impacts of minimum wage, but I tend to believe if you set above the market it will tend to increase unemployment among the least skilled. We won't find out because he can't do it.
 
The Great Zaganza said:
I have been told all my life that government-run companies can never compete with private run ones - was I being lied to?
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As a rule, I'd say they can't rarely compete efficiently. What they can do is draw on taxes to undercut competition and often government bans the competition.

ETA: I think Mamdami's idea is that they'd be exempt from taxes rather that get subsidized.
 
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The Great Zaganza said:
If the private sector can't provide essential goods, it is the Obligation of the State to provide an alternative.
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Even if the private sector is providing essential goods, if the state moves into the market, they will eventually squeeze out the private sector as long as the state gives itself advantages, they private sector can't; tax breaks, subsidies and such.

Groceries stores operate at an average profit margin or 2 1/2%, sales tax in NY city is more than 8%. The private sector cannot compete with a competitor that automatically gets a 5% advantage. Meanwhile, NY taxpayers, the very folks benefiting from the city groceries are just paying the tax on the back end instead of the front end. And off course the city will have reduced tax income on account of less sales taxes from groceries. The there's if groceries in the city run stores are actually cheaper, instant black market.
 
ahhell said:
Groceries stores operate at an average profit margin or 2 1/2%, sales tax in NY city is more than 8%. The private sector cannot compete with a competitor that automatically gets a 5% advantage. Meanwhile, NY taxpayers, the very folks benefiting from the city groceries are just paying the tax on the back end instead of the front end. And off course the city will have reduced tax income on account of less sales taxes from groceries. The there's if groceries in the city run stores are actually cheaper, instant black market.
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Groceries are generally exempt from sales tax.

There seem to be some unwarranted assumptions at work here--that if the city is successful with public grocery stores they'll just build them everywhere. I don't see why they'd do that. The motivations for expansion of a public service are different from those of a private business.

There's also an assumption that grocery stores can't compete with a store with lower prices. The existence of high-end chains should make it obvious that this isn't really true. I expect these stores, if we ever see them, will be fairly no-frills.
 
mumblethrax said:
Groceries are generally exempt from sales tax.

There seem to be some unwarranted assumptions at work here--that if the city is successful with public grocery stores they'll just build them everywhere. I don't see why they'd do that. The motivations for expansion of a public service are different from those of a private business.

There's also an assumption that grocery stores can't compete with a store with lower prices. The existence of high-end chains should make it obvious that this isn't really true. I expect these stores, if we ever see them, will be fairly no-frills.
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My assumption is that state run retail can always out compete private concerns because the state can always subsidize their own operations via taxes.

My understanding is that Mamdami's idea is that the advantage his city runs stores will have is by being exempt from taxes. If that is his plan and private groceries already are, well, what's the point? To run stores at a loss? Then were do the funds come from?
 
ahhell said:
Even if the private sector is providing essential goods, if the state moves into the market, they will eventually squeeze out the private sector as long as the state gives itself advantages, they private sector can't; tax breaks, subsidies and such.

Groceries stores operate at an average profit margin or 2 1/2%, sales tax in NY city is more than 8%. The private sector cannot compete with a competitor that automatically gets a 5% advantage. Meanwhile, NY taxpayers, the very folks benefiting from the city groceries are just paying the tax on the back end instead of the front end. And off course the city will have reduced tax income on account of less sales taxes from groceries. The there's if groceries in the city run stores are actually cheaper, instant black market.
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To me I guess I'm imagining it as more of a soup kitchen, or food pantry from a church. They also don't pay taxes, etc.
 
ahhell said:
My assumption is that state run retail can always out compete private concerns because the state can always subsidize their own operations via taxes.

My understanding is that Mamdami's idea is that the advantage his city runs stores will have is by being exempt from taxes. If that is his plan and private groceries already are, well, what's the point? To run stores at a loss? Then were do the funds come from?
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The funds come from the same place all social safety nets come from, the only difference is this one could possibly be a little bit more self sufficient.
 
ahhell said:
My assumption is that state run retail can always out compete private concerns because the state can always subsidize their own operations via taxes.
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Probably, but the plan here isn't to outcompete existing stores, it to fill the gaps where private concerns aren't meeting the needs of the neighborhood.

My understanding is that Mamdami's idea is that the advantage his city runs stores will have is by being exempt from taxes. If that is his plan and private groceries already are, well, what's the point? To run stores at a loss? Then were do the funds come from?
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The bigger advantage is that the stores will be run out of underutilized city-owned buildings--effectively rent free and property tax free.

Regardless, I hope he makes it happen, I'm curious as to the results.
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Yeah, seems like exactly the kind of experimentation that federalism/home rule allows for. Let's try it out and see what happens.
 
The Great Zaganza said:
I have been told all my life that government-run companies can never compete with private run ones - was I being lied to?
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Mamdani blamed Netanhayu and Israel the day after the October 7 attacks
Edited by jimbob: 

Spoilered link as though it's a Jerusalem Post link, it was reported as redirecting to a Russian website with a fake Macafee pop-up before going on to the Jerusalem Post


Not that that position is particularly controversial around here, but this is New York City.
 
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Brainster said:
Mamdani blamed Netanhayu and Israel the day after the October 7 attacks
Edited by jimbob: 

Spoilered link as though it's a Jerusalem Post link, it was reported as redirecting to a Russian website with a fake Macafee pop-up before going on to the Jerusalem Post


Not that that position is particularly controversial around here, but this is New York City.
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So?? He blamed Israel's racist, inhumane and brutal decade's old policies for creating the fuel for Oct 7. Good for him.
 
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