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Benzinga
Benzinga
Adrian Volenik

Optics Over Results? New York's Zohran Mamdani Proposed Government-Owned Grocery Stores, But What Do People Really Think About Them

Mamdani Says: 'I Don't Think We Should Have Billionaires'

Zohran Mamdani, fresh off a primary win and favored to become New York's next mayor, is stirring up debate with a bold pitch: open five city-owned grocery stores, one in each borough.

The plan is designed to bring affordable, fresh food to areas with limited access to supermarkets.  But some critics say it sounds more like a political stunt than a solid solution.

Is This A Fix For Food Deserts Or A Government Overreach?

In many low-income New York neighborhoods, food insecurity affects more than 30% of residents, according to the City Council. Mamdani says the $60 million pilot would let the city buy and sell at wholesale prices, avoid rent and property tax, and partner with neighborhoods on stocking decisions. But he hasn't shared how the stores would be built or operated, or whether workers would be on the city payroll.

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Responding to a recent post on Reddit that asked: “What do you think of the idea of state-owned grocery stores?” supporters see it as a way to step in where the private sector won't. “If private enterprise isn’t serving the need, this is called a ‘market failure,'” one commenter wrote. “Market failure conditions are the exact conditions under which government is best entering a market.”

Others compared it to existing public services. “Nobody blinks twice at the [Department of Defense, Social Security Administration, or United States Postal Service] not turning a profit because they provide a needed service,” another person said. “Government entities exist to provide services to people who need it, even if it’s at a net loss.”

Proponents also pointed to the military commissary system as proof that government-run grocery stores can work. “They are significantly cheaper than regular grocery stores,” one commenter noted, adding that they charge “the cost of an item plus 5%.”

Still, many remain skeptical.

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Critics Warn About Efficiency And Costs

Detractors argue that grocery stores are already a razor-thin margin business. “There is no way this is going to end well for taxpayers.” However, the counterargument by someone was that “Having healthy food be more accessible to poor people is a good use of my tax money. Better than most things it currently pays for.”

Others questioned the premise that the government could run stores better than private companies. “Labor is a huge cost of business… facilities costs don’t go away just because you’re ‘the government,'” one commenter pointed out.

Some warned the plan could backfire by hurting existing small grocers. “Wouldn't that have a tendency to push private stores out of business over time, since they couldn't compete with a government-subsidized store?” one person asked.

The debate also touched on whether food deserts in the city are truly a pressing issue. “Are there food deserts in NYC? Isn't everything a public transit stop away?” one commenter asked. But another replied, “Most of the Bronx, especially the eastern area, is considered a food desert. Upper Brooklyn is also considered a food desert.”

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Trying Something New Or Wasting Taxpayer Money?

Some people struck a middle ground, suggesting the idea is worth testing. “Let NYC try this one. Let Kansas City try another. Let Chicago or Oklahoma City try a third option. See what works best,” one Reddit user wrote.

But not everyone bought into the optimism. “This whole idea is based on an ideological blind spot that maximizing profits inherently leads to bad results,” a commenter argued. “As long as there’s fair competition, seeking to maximize profits leads to good outcomes.”

In the end, Mamdani’s proposal has stirred passionate debate over the role of government, the realities of grocery economics, and what it really takes to fix access to food. Whether it’s a step forward or a political sideshow, many agree: it’s at least worth the conversation.

Read Next: The average American couple has saved this much money for retirement — How do you compare?

Image: Shutterstock

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