Mamdani Begs Capitalists At The Adult Table For Help

 Submitted by QTR’s Fringe Finance

There is something genuinely entertaining about watching a socialist discover the private sector. For years, Zohran Mamdani has treated capitalism less like the engine that keeps New York City alive and more like an unfortunate infestation to be taxed, regulated and occasionally yelled at from the sidewalk outside a billionaire’s apartment.

Now, eight months into running the city, Mamdani appears to have made an ironic discovery: He needs people who know how an economy actually works to help him.

On Thursday, the mayor announced a 15 member Business Advisory Council, declaring that “the doors of City Hall are always open to New York’s business leaders.” How gracious. Apparently someone finally explained to the mayor that the people who build companies, employ New Yorkers, invest billions of dollars and generate enormous amounts of tax revenue might be worth having a chat with before he finishes chasing them out of town.

The problem, of course, is that Mamdani has spent much of his political career giving those same people reasons to wonder whether they should walk through City Hall’s newly opened doors or simply leave New York as quickly as possible in favor of tax and business friendly states like Texas and Florida.

This is the mayor who embraced the standard progressive fantasy that rich people and successful businesses are basically permanent pieces of municipal furniture, put there only for the good of the elected officials in charge to carry out whatever circus of an agenda they can fantasize while wearing a beret and typing out a PowerPoint slide titled “My Version of Utopia” at a Brooklyn coffee shop. The prevailing sentiment was that the rich can be taxed, squeezed and insulted indefinitely and, for some mysterious reason, will never change their behavior.

In just 8 months, Mamdani met reality: New York Told Ken Griffin To Leave…And He Listened

Capital moves. Wealthy taxpayers move. Businesses reconsider investments. Entrepreneurs decide that perhaps their next store, office or headquarters would be easier to open somewhere that does not regard their success as evidence of a crime. Every dollar of investment that leaves New York is a dollar Mamdani cannot tax to pay for the enormous pile of shit he made back when governing consisted mostly of speeches, slogans and finding new things to declare “free.”

Even his government grocery store fantasy has encountered the annoying problem of actual grocery stores. Local operators have objected to the prospect of competing against stores backed by the city government and taxpayer money.

Who could possibly have anticipated that businesses might dislike being forced to finance their own government subsidized competition?

And so, like a college freshman majoring in Economics who has instead spent half the semester smoking pot, writing poetry and playing “Lesbian Seagull” on acoustic guitar in the park, Mamdani is now in a rush…looking for people who actually know the material.

Enter the Business Advisory Council. According to New York magazine, the council includes figures such as former Blackstone COO Tony James, tech investor Kevin Ryan, RXR’s Scott Rechler and former UBS Americas CEO Robert Wolf, along with entrepreneurs and executives from several other industries. These are, in other words, people familiar with the obscure concepts of investment, payrolls, risk, revenue and making sure more money comes into an enterprise than goes out.

Former Partnership for New York City CEO Kathryn Wylde called the council an important “sounding board” that could give Mamdani advance warning when concerns are developing in the business community. She also suggested that better communication could prevent “a repeat of the Ken Griffin video,” referring to Mamdani’s stunt outside the hedge fund billionaire’s penthouse announcing his proposed pied à terre tax. No shit.

(Read: Mamdani Is Destroying The Tax Base His Stupid Ideas Desperately Need)

That is an extraordinary recommendation when you think about it. One purpose of the mayor’s shiny new council is apparently to have successful adults nearby who can tell him when he is about to do something stupid.

This is sad. But this is progress.

Successful cities do not merely need businesses after politicians finish writing policy. They need politicians who understand how businesses will react before writing it. People respond to incentives. Investors respond to risk. Businesses respond to costs. Taxpayers respond to taxes. This is not some dark Koch brothers conspiracy or secret lesson taught at Davos. It is Economics 101.

Raise the cost of doing something and eventually people do less of it. Make New York dramatically more expensive or hostile to investment and some investment will go somewhere else. Treat affluent residents primarily as stationary revenue sources and eventually some of them discover that airplanes exist and land in Miami occasionally.

A government is perfectly entitled to dislike those reactions. It just cannot repeal them.

There is also evidence that Mamdani’s sudden friendship offensive is not exactly causing titans of industry to stampede toward City Hall. New York magazine reports that the council includes no active executives from household name technology companies or top financial firms such as JPMorgan Chase, Citigroup or BlackRock. One business leader told the magazine that five major CEOs declined invitations.

“I know of five major CEOs who said ‘no,’ so this was not the group that they initially targeted,” the source said.

Apparently the doors of City Hall are open. The problem is getting people to come inside.

Even some of Mamdani’s most prominent critics welcomed the outreach. Billionaire John Catsimatidis called the council “a step in the right direction.” Partnership for New York City CEO Steven Fulop said any attempt by the mayor to solicit input from business leaders is positive, although he also dismissed a council that meets quarterly as a “performative board.”

They are right that reaching out is a good idea. In fact, it is such an obviously good idea that it raises an awkward question for Mamdani: Why did a politician whose entire agenda depends upon extracting gigantic amounts of money from New York’s economy need eight months in office to discover that perhaps he should listen to the people responsible for producing much of it?

That question gets to the larger problem with Mamdani’s politics. His worldview tends to treat economic outcomes as political choices. Housing is expensive? Government can make it cheap. Groceries are expensive? Government can open stores. Child care is expensive? Government can provide it. Taxes are not producing enough money? Find somebody richer and tax him more. Apparently somewhere beneath City Hall is a giant money faucet that previous mayors were simply too cowardly to turn on.

🔥 85% OFF IF YOU SUBSCRIBE TODAY: Anyone who becomes a paid annual subscriber to Fringe Finance today gets 85% off a subscription — a discount they can keep for as long as they wish to remain a subscriber: Get 85% off forever

Every problem has a government solution, every government solution requires more money and the answer to where that money comes from is always some variation of “rich people.”

But governing has a nasty habit of introducing politicians to the second half of every policy proposal: Then what?

Tax wealthy residents and then what happens when some of them leave? Raise the cost of doing business and then what happens when businesses invest elsewhere? Open government grocery stores and then what happens to the private grocers expected to compete against City Hall? Promise billions of dollars in new spending and then what happens when the tax revenue required to pay for it fails to materialize?

Campaigns are wonderful places for fairy tales because consequences have not arrived yet. Governments are where the invoice shows up.

Mamdani may finally be beginning to understand that. If so, good. New Yorkers should hope the council succeeds because a mayor capable of learning from reality is considerably better than one determined to lose an argument with it.

But nobody should confuse the correction with vindication of the original course. The creation of this council is, in its own small and hilarious way, an admission. The capitalist class Mamdani spent years treating as something between a nuisance and an ATM turns out to possess something City Hall desperately needs besides money.

Knowledge. They know what makes businesses expand and what makes them leave. They understand investment, costs, incentives and risk. They know that wages ultimately have to be paid by something, that revenue must exist before government can tax it and that wealth must be created before politicians can redistribute it.

These are apparently startling revelations at Mamdani City Hall. The socialist mayor came into office promising to remake New York’s economy. Eight months later, he is assembling a room full of capitalists to explain to him how that economy actually works.

Call it the Business Advisory Council if you want. It looks a lot more like Mamdani begging any adults in the room for help.

QTR’s Disclaimer: Please read my full legal disclaimer on my About page here. This post represents my opinions only. In addition, please understand I am an idiot and often get things wrong and lose money. I may own or transact in any names mentioned in this piece at any time without warning. Contributor posts and aggregated posts have been hand selected by me, have not been fact checked and are the opinions of their authors. They are either submitted to QTR by their author, reprinted under a Creative Commons license with my best effort to uphold what the license asks, or with the permission of the author. I cannot guarantee the accuracy of all facts and figures included in this article though I made my best effort to get them right. I have been wrong before and will be wrong again, and encourage you to always double check, do your own research and speak to a licensed financial professional.

This is not a recommendation to buy or sell any stocks or securities, just my opinions. I often lose money on positions I trade/invest in. I may add any name mentioned in this article and sell any name mentioned in this piece at any time, without further warning. None of this is a solicitation to buy or sell securities. I may or may not own names I write about and are watching. Sometimes I’m bullish without owning things, sometimes I’m bearish and do own things. Just assume my positions could be exactly the opposite of what you think they are just in case. If I’m long I could quickly be short and vice versa. I won’t update my positions.

As of May 20, 2026 I am attempting to no longer actively trade as much as I once did (read my story here). My eventual goal is for investing/saving to be mostly done by recurring contributions mostly to sector ETFs and a few select equities, trusted third parties who oversee my accounts, and advisors. Such advisors or funds, through individual equities, options, index funds, mutual funds, ETFs, or other securities, may have positions in, exposure to, or holdings of names mentioned herein that I know nothing about. Basically, via index funds, ETFs and individual equities it is possible I could own, have exposure to, or not own anything at any point. As of the same date, May 20, 2026, in an attempt to lead a healthier lifestyle, I’ve also excluded myself from fantasy sports, sports betting, online and in-person casinos and prediction markets.

And all positions can change immediately as soon as I publish this, with or without notice and at any point I can be long, short or neutral on any position. You are on your own. Do not make decisions based on my blog. I exist on the fringe. If you see numbers and calculations of any sort, assume they are wrong and double check them. I failed Algebra in 8th grade and topped off my high school math accolades by getting a D- in remedial Calculus my senior year, before becoming an English major in college so I could bullshit my way through things easier.

The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates. I did my best to be honest about my disclosures but can’t guarantee I am right; I write these posts after a couple beers sometimes. I edit after my posts are published because I’m impatient and lazy, so if you see a typo, check back in a half hour. Also, I just straight up get shit wrong a lot. I mention it twice because it’s that important.