Rebuilding Gotham
Among the economic and social policy proposals offered by New York City mayor Zohran Mamdani, three of the most frequently cited include rent freezes, a free bus service, and universal childcare. Using my cursory knowledge of half-a-semester of economics, let’s delve into the fine print of each of these proposals in order to ascertain just how radical they are. Because, according to some, they are far from being radical and, in fact, are just, well, normal.
One of the first maxims you learn in introductory economics is that binding rent controls cause shortages. They decrease the quality of existing units and incentivize landlords to allow them to fall into disrepair or even take them off the market. Indeed, Mamdani critics have voiced this very concern regarding his rent control proposals. Some have, instead, proposed that Mandani should increase housing supply via new construction, YIMBY (“Yes, in my backyard”) cooperation, and “upzoning.” Others have dismissed his and the Democratic Socialist of America’s proposals of a partially-planned economy as tried, tested, and, yes, failed. Nevertheless, Mamdani won the election and his proposals retained broad popular support amongst his constituents.
But, despite its evident popularity, can rent freezes solve New York City’s housing crisis? Well, The Atlantic’s Roge Karma thinks so. In a recent piece, Karma concluded that “if rent control offers a way through [the housing] impasse, it might be worth the gamble.” Drawing on a 2022 study conducted by political scientists about the Berlin housing market, Karma argues that people are actually more likely to support new construction if there are rent freezes. In this regard, Mamdani’s rent freezes could be the first step towards a viable environment for new construction projects and an eventual amelioration of the housing crisis.
Perhaps Mamdani’s most controversial policy besides the government-run grocery stores, the promise of free buses has fostered support, dissent, and uncertainty among New Yorkers and the broader public. Supporters argue that it will improve public safety and affordability while detractors argue that public safety will decrease and attacks on bus operators will escalate. In my opinion, the disgraced former governor Andrew Cuomo might have been right for once when he proposed levying the fare only on rich New Yorkers. Instead of targeting equality universality with regard to bus fares, Mamdani could perhaps eliminate fares for the poorest New Yorkers and target equity. This would be in line with much of his platform and contemporary Democratic Socialist thought.
Mamdani’s third major proposal, in my eyes, is his aim to provide universal childcare. At the risk of sounding like a broken record, I will note that the United States is one of the worst developed nations with regard to childcare. In the linked UNICEF study, we are second-to-last overall with dismal scores across the board with regard to parental leave and childcare access, quality, and affordability. With this in mind, universal childcare remains a critical proposal of the Mamdani platform.
Whether or not Mayor Mamdani succeeds in enacting his ambitious progressive agenda is anyone’s guess, but I for one am optimistic. Considering how Trump channeled populist frustrations into his 2024 campaign, Mamdani is positioned well to steer Democratic politics towards a left populism that will be a formidable MAGA opponent. Many Americans, including myself, are incredibly excited about Mamdani’s aforementioned proposals and the entirety of his policy platform. Let’s hope and pray that it comes to fruition.
