Socialist Robin Hood of Capitalist NYC: Mamdani’s rise sets stage for a new kind of showdown

The stunning victory of 33-year-old Indian-origin Democratic Socialist Zohran Mamdani has stunned the US financial capital and delivered an awakening to the Democratic Party. On Tuesday, Mamdani emerged as the winner of the Democratic primaries, toppling the aspirations of former New York governor Andrew Cuomo.

While the journey to be the next mayor of New York City is still far for Mamdani, with current NYC Mayor Eric Adams and Republican pick Curtis Silwa being the hurdles, the Tuesday results reflected a different story. Mamdani’s win raised the question of whether a Democratic Socialist can lead New York City, the mecca of wealth and capitalism.

Apart from this, Mamdani’s underdog win also highlighted the challenges establishment Democrats face with younger voters and working-class voters. It emerged as a learning experience for the party, providing it with a roadmap for future polls after witnessing an embarrassing defeat to the Republicans in the 2024 US Presidential Elections.

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Socialist Robin Hood of Capitalist NYC

Apart from his innovative short-form content, Mamdani stressed affordability in his progressive campaign. From promising rent freezes and free bus transit, child care, to forming government-run grocery stores, Mamdani laid out his policies with a pledge that New Yorkers would pay less.

When his opponents hurled questions about how he would pay to actualise all his promises, Mamdani had one simple response: “I’ll pay for it by taxing the rich.” He made it clear that if he came to power, he would tax the rich and big businesses in a city with enormous wealth,  including Wall Street.

As per his manifesto, Mamdani wants to raise New York’s corporate tax rates from 7.5 per cent to 11.5 per cent, which is not a novel concept. The tax rate will be the same as that of New Jersey. Apart from this, Mamdani wants to impose an additional 2 per cent surtax on New Yorkers making more than $1 million annually.

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So, how is Wall Street reacting to Mamdani’s win?

Meanwhile, Wall Street woke up on Wednesday to a volatile situation with Trump’s deal with Iran and Israel and Mamdani’s win. The self-proclaimed socialists’ win in the primaries sent shockwaves through Midtown offices and downtown trading floors. Hedge fund managers, venture capitalists, and investment bankers are now confronting the possibility that a mayor hostile to their interests could be running NYC.

Shares of New York-based banks exposed to real estate fell on Wednesday, with Flagstar Financial and Flushing Financial down 3.8 per cent and 3.4 per cent, respectively, Reuters reported. The capitalists in the city responded to Mamdani’s win in panic.

Several prominent financiers, including allies of Cuomo and Mayor Eric Adams, began mobilising within hours of Mamdani’s victory. As per the report, a group of hedge fund executives and real estate magnates are looking to raise $20 million to back independent or alternative candidates who could derail Mamdani’s general election bid against Adams and Silva.

Some capitalists in NYC are also persuading Cuomo to run independently. Interestingly, efforts are also being made to persuade Republican nominee Curtis Sliwa to step aside, opening doors for a possible Trump administration appointment.

Lessons for Democrats

It is pertinent to note that Tuesday’s primary came almost one year after former US President Joe Biden’s disastrous debate performance against the current US President Donald Trump, which ultimately led to Trump’s win in the 2024 race.

Mamdani’s performance reflected that Democrats need to get out of the old vanguard and rely on young faces. Many, like Vermont Senator Bernie Sanders, believed that Democrats lost the elections in 2024 because they abandoned the country’s working class.

Not only this, Latinos, Arabs and Muslims, who supported Democrats in the past, supported Trump in 2024, mainly because they believed Trump offered better economic policies than then-Vice President Kamala Harris. Ultimately, this section of the American political landscape witnessed betrayal with Trump’s bizarre policies.

In Mamdani’s case, the 33-year-old Indian-origin Democrat maintained that he was working for the welfare of the working class. “A party where we fight for working people with no apology,” Mamdani said during his victory speech. “A life of dignity should not be reserved for a fortunate few. It should be one that the city government guarantees for every New Yorker.”

Hence, progressives like Mamdani can bring back the working-class voters Democrats lost in 2024. However, Republicans have often painted Mamdani as radical. Many have often called out his pro-Palestinian stance, some framing it as “anti-semitic”.

While Mamdani has spoken out against antisemitism in New York, his past positions on Israel, including declining to condemn pro-Palestinian rhetoric like “globalise the intifada,” which some Jews see as a rallying cry for violence against them. Hence, politicians like Mamdani might not turn out to have an appetite for red and swing states.

Hence, Democrats will have to maintain a fine balance. They have to reconnect with the working class, ensuring that the conservative vote won’t run away. In regards to Mamdani, the popularity of his ideas will again be put to the test during the Mayoral General Elections in New York City.