Socialist Zohran Mamdani's government grocery plan built on $140M math error: report

 

Socialist Zohran Mamdani's policy to have government-run grocery stores is based on an accounting error, according to a new report from the Washington Examiner. According to the outlet, Mamdani's claim that he will pay for publicly-funded grocery stores in New York City with subsidies that are already going to private grocery stores is based on the socialist's misunderstanding of the tax breaks given to retail grocers in the New York, and the money he has said will pay for them is not available.

The Examiner reported, "Specifically, he wrongly believes that the city is spending $140 million to subsidize private grocery stores, and he thinks he can take half of that money and use it to build government groceries."

Mamdani has brought up the talking point before in one video when touting the idea of government-run grocery stores. “We will redirect city funds from corporate supermarkets to city-owned grocery stores whose mission is lower prices, not price-gouging," he said.

In another interview detailing how he would pay for it, Mamdani said that his five government-run grocery stores will cost $60 million and that "should be compared to the city’s existing program called City FRESH, where they are set to spend $140 million, subsidizing corporate grocery stores … So we would take less than half of the money the city is already set to spend, and actually deliver results."

The FRESH, or Food Retail Expansion to Support Health program, consists of tax breaks for stores that have opened up in so-called "food deserts," or neighborhoods where New York City has determined do have enough access to food. 

Those tax breaks, however, only save the "food desert" grocery stores a few million dollars every year. The city has given up around $30 million in tax revenue with the program, meaning that the numbers are not physical funding, but that the city does not receive taxes the local government would have originally received if not for the tax breaks. The average savings per year for the stores total is around $3.3 million and it would take 42 years to get up to the $140 million figure Mamdani has cited. 

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