Economists and business leaders voice strong opposition to New York City mayoral candidate Zohran Mamdani's proposal for city-owned grocery stores, claiming it won't effectively lower food prices. Critics, including Ryan Bourne and E.J. Antoni, argue government entities lack market discipline, leading to inefficiency, bloated costs, and potential food shortages. While Mamdani aims to lower costs by eliminating rent and partnering with local farms, experts warn this model is unrealistic and could inadvertently threaten the private market and food availability in the city.
"You don't lower grocery bills by having government-run stores. Government-run entities have no market discipline - no need to earn profits, compete, or serve customers efficiently."
"If we just do the simple math here, there's no way you can sell these products at lower prices and still make money."
"Everyone is going to want to go to these grocery stores; the city-run grocery stores have the potential to exacerbate food shortages in New York City."
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