With Zohran Mamdani officially securing the Democratic nomination in the New York City mayoral race, centrist figures within the Democratic party, such as former Treasury Secretary Jack Lew, are raising questions on the city’s future under a self-described Democratic Socialist.
What Happened: Appearing on The Master Investor podcast on Wednesday, Lew, who served in the Obama and Clinton administrations and was most recently U.S. ambassador to Israel under President Joe Biden, offered a sharp rebuke on Mamdani's policy platform.
He says, “I worry deeply,” calling New York City his home, where he’s spent most of his life, while adding that the policies outlined by Mamdani are not good for the city.
Lew suggests that he views Mamdani’s policies as impractical, drawing parallels between both far-left and far-right proposals. He says, populist policies from either side often skip a critical test, “[They] don't always go through the filter of, do they work? I don't think they work.”
He also noted that New York's mayoral powers are constrained. “New York is not an entirely independent governing entity. Many of the policies have to be approved by the state legislature or governor,” Lew said, suggesting that institutional checks may blunt the impact of any sweeping ideological shift.
Why It Matters: Last week, billionaire hedge fund manager Bill Ackman echoed similar views, expressing “grave concern” on Mamdani’s victory.
The CEO of Pershing Square Capital Management warned that Mamdani, an “avowed socialist,” would be “disastrous for NYC,” triggering an exodus of wealthy taxpayers, resulting in a $5 billion to $10 billion drop in the city’s revenues from the financial services industry alone.
Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, commented on Mamdani’s victory last week, saying, “It appears things will have to get worse in NYC before they get better,” adding that sometimes the only way to learn something “is to learn it the hard way.”
“It's what the people of NYC have been asking for for years and it looks like it's what they are about to get. Trying to fight against this tide seems like throwing good money after bad,” he says, while expressing his reluctance to support a candidate against Mamdani.
Image via Ron Adar on Shutterstock.com
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