New York City Mayor Zohran Mamdani is promising New Yorkers a 30% discount on a core basket of groceries at city-backed stores, a pledge that now faces scrutiny over whether the numbers add up.The announcement raises a straightforward economic question: How?The city's own numbers illustrate the challenge.If grocery prices have climbed 33% nationwide since 2019, how can city-backed stores offer a cart of groceries at prices 30% below private competitors? That's the question economists say the proposal must answer.MAMDANI’S PUBLIC GROCERY STORES MAY HAVE DEVASTATING EFFECTS ON CITY'S FOOD SUPPLYMamdani's administration claims its plan will save the average New Yorker about $1,000 a year while keeping grocery costs predictable and stable.The proposal is rooted in a simple reality: grocery prices remain significantly higher than they were before the pandemic.Bureau of Labor Statistics data show food-at-home prices climbed sharply following the COVID-19 pandemic, with most major grocery categories remaining significantly more expensive than they were in 2019.City Hall says it can achieve savings by eliminating major overhead costs that private grocers face, including rent and property taxes, while contracting with private operators to run the stores.
Under the proposal, a core basket of everyday groceries — including all fresh produce, meat and seafood, along with roughly 20 categories of pantry staples, dairy and refrigerated goods — would have prices locked monthly rather than fluctuating week to week.Richard Stern, vice president of the Plymouth Institute for Free Enterprise at Advancing American Freedom, argued the proposal ultimately relies on taxpayer dollars to make up the difference between the discounted prices and the cost of operating the stores."They're just going to use New York City budget money to insure the discount," Stern told Fox News Digital.MAMDANI'S RENT FREEZE, TAX HIKES A 'ONE-TWO WEALTH DESTRUCTION PUNCH,' ECONOMISTS WARNNew York Mayor Zoh...