The votes are in; in New York City, we have elected a Democratic Socialist to lead from the heart and soul of Capitalism.
Fox News declared it an “earthquake” while The New Yorker had this to say about Zohran Mamdani’s election:
“His opponents tried to smear him for his youth, inexperience, and leftist politics. But New Yorkers didn’t want a hardened political insider to be mayor—they wanted Zohran Mamdani.”
Enthusiasm for his election is indeed palpable, especially, although not exclusively, among young people. And the biggest voter turnout since New York elected Mayor Lindsay in 1969 gives Mamdani a decent mandate—a slim majority vote in a three-way election, an achievement in itself.
That doesn’t mean everyone is on board. Some New York executives were outraged, or at least perplexed, that they couldn’t just erase a guy who seemed to come out of nowhere. Others threatened to decamp from the Big Apple as polls revealed a healthy margin over Andrew Cuomo, a name brand whose playbook they understand, and maybe respect.
And what can we expect from business leaders now?
When the Business Roundtable published its updated statement of corporate purpose in 2019, it was explicit about the need for the market to serve everyone—a call to move capitalism to a place that is more sustainable, equitable and just. Sounds a lot like “democratic socialism,” so what is really at stake here for business?
The top 5% of earners in New York (and across the tri-state) have incomes greater than $600,000, eight times the median income for households overall. The fact that the majority of voters in New York want both public and private sector institutions to reassess who gets what piece of the pie isn’t all that radical. It’s how we get there that causes consternation.
The angst we hear from business and the “establishment” is likely about the proposal to increase taxes on high earners to pay for free access to essential goods and services—along with concern that Mamdani’s charm and experience are in the wrong proportions.
But the ideas that propelled the Mayor-elect’s win are hardly new, even in the US. New Mexico has already embarked on universal access to free day care. Mayor de Blasio brought universal pre-K into existence during his tenure. On the same day Mamdani was elected, the state of Colorado approved a wealth tax to pay for school lunches and food stamps. Kansas City was the first American city to introduce free buses and others followed. The NYC MTA began testing free bus routes in 2023 with subsidy from the state. Given such precedents, do Mamdani’s ideas for improving the lives and welfare of citizens seem that far out of reach?
The new mayor will not be able to raise taxes on the top earners without the state legislature, but the give and take between city and state is the rule, not new. Mike Bloomberg spent his first six months in City Hall negotiating control of the school system from Albany. Then companies like IBM got on board and worked alongside Mayor Mike’s staff on his change agenda.
Mamdani is also elevating the rise of the next gen in politics. Millennials are finding their voice, which takes us back to the shape of capitalism. Maybe their enthusiasm for Mamdani raises legitimate questions about changes needed in corporations—and politics—if New York City, and the country, is going to flourish. When you poll people purely on policy, without referencing political/economic ideology, they favor policies that fit within the definition of Democratic Socialism.
Unfortunately, the word socialism conjures up authoritarianism which makes it quite the boogeyman.
What we hope for from business leaders now is an authentic moment of reflection and good faith engagement in problem solving. It is a time much like the moment that founded the Partnership for New York City in 1979, as the city emerged from near bankruptcy.
The Feds, then, much like now, had refused to help (“Ford to NYC: Drop Dead”). Actions of the city “fathers” led to the Partnership, made up of the executives with the biggest payrolls and footprint. Through both policy change and investment, the crime rate eventually declined, the streets were clean, housing built, new forms of public/private partnership were invented to revive neighborhoods and parks. Broadway’s lights attracted tourists back to a refreshed Times Square. Life in the Big Apple went on, amid, of course, unremitting cacophony and chaos and conflicts over a host of challenges, like gentrification.
What does this moment mean for cities beyond this one?
One shift in thinking is already playing out across the country. After decades of embracing globalization, executives are again leaning into place, thinking anew about the design and sustainability of cities, infrastructure, key institutions and services that make cities great places to live, work and retire. In Chicago, McDonalds and Allstate moved headquarters from suburban campuses to inside the Loop. In his role as a philanthropist, Mike Bloomberg built CityLab, a dynamic global hub of cross-learning and inspiration for those who serve and manage cities. While Washington and the White House continue to loom large in both political and business arenas, place matters. Community matters. The people who power business matter.
Mamdani’s win may eventually be seen as masterful; it was a disciplined campaign that stayed on message for the local electorate. As David Graham writes in The Atlantic, “The big lesson may be that Democrats’ best bet is to run candidates who effectively represent and speak to the places they’re running, rather than pursuing a single ideology.”
Businesspeople are nothing if not pragmatic. What’s next?
Many executives are adopting a wait-and-see attitude about Mamdani. Jamie Dimon, CEO of JPMorgan Chase, with a new 60-story headquarters at the foot of Park Avenue, likely speaks for the majority when he said that he will work with whomever is elected. “Capitalism has a lot to fix,” he admits, but “New York will survive.”
New York needs business, but businesses that create useful products and services also need New York. They thrive on the diversity of people, culture and creative spirits, and the sense of place that continues to draw talent and young people from many disciplines to fuel that which makes New York the best city in the world.
When people ask about living here, I tell them that to love New York you must love what New York offers, in abundance.
I can’t wait to see what this next chapter brings.
This blog post was originally published on LinkedIn. Follow Judy Samuelson for more insights on business and society.