“Groucho Marx socialism is already on display in the initial rollout of the mayor’s plans for city-run grocery stores,” write the editors of the WSJ. The city is slated to build its first store by 2029. Estimated cost: $30 million.

Meanwhile, the city of New York is facing huge budget shortfalls, reports the WSJ.

• The New York City Housing Authority says it needs $78 billion in repairs.
• The Metropolitan Transportation Authority another $69 billion.
• The city budget is estimated to have a deficit of more than $12 billion through 2027.

That cost is “out of this world.” And no, that space doesn’t need to be built from scratch, as noted in the Journal, when there is plenty of space that can be refurbished and rented.

Price Controls

The city plans to select private operators. Included will be strict plans for pricing and wage rates for employees (unionized). Also will be subsidizing for staples (bread and eggs).

Government-run operations can operate with subsidized capital, while paying no taxes, and have no need to make a profit. “The city will pick up any rental costs.”

Mamdani Marts will be able to undercut prices at the private grocery stores and bodegas in their neighborhoods.

This kind of collectivist competition isn’t what the other store owners would call warm.