Ibn Khaldun warned us about Mayor Zohan Mamdani’s ideas.I first encountered Ibn Khaldun while studying Islamic political thought at the American University in Cairo.
His 1377 masterwork, the Muqaddimah (The introduction to his universal history), pioneered systematic approaches to historiography, sociology, economics, demography, and the philosophy of history.Khaldun’s book features a clear description of what became known six centuries later as the Laffer Curve — the economic theory that, as tax rates rise there will be a peak in revenue, beyond which as rates continue to go up, revenue starts to decline as economic activity collapses.Per Khaldun, early in a dynasty, low taxes encourage enterprise; revenue rises and civilization flourishes.Later, rulers demand more luxury and larger armies.
Taxes climb.Businessmen compare their shrinking profits to the growing burden and lose incentive.
Production falls, and with it tax yields.At that point, governments often turn to subsidies and then enter commerce themselves — buying and selling, establishing monopolies, competing directly with private traders.
Independent merchants are further discouraged.Many leave or quit.
The tax base collapses.The empire weakens and falls.EXPERTS SCORCH MAMDANI'S GROCERY PLAN AS AN 'ILLUSION' THAT WILL HAVE TAXPAYERS FOOTING THE BILLNew York City Mayor Zohran Mamdani is now testing a modern version of the later stages of that cycle.
The mayor is advancing a plan for city-owned grocery stores — one in each borough — with the first expected to open in the Bronx in 2027 and others by the end of his term.The city will own the land, cover construction (tens of millions of dollars already allocated), waive rent and taxes, and subsidize a core basket of staples so they sell roughly 30 percent below typical retail prices.
A private operator will handle day-to-day management under city-set rules on pricing and labor.Supporters frame this as relief for high food costs.History and ...