Mamdani's 'ration shop' grocery plan faces blistering economic critique as opponents blast socialist policy

By Fox News · Fox News

New York City Mayor Zohran Mamdani is facing fresh criticism after unveiling plans for city-backed grocery stores that would sell food at prices 30% below traditional retailers, with opponents deriding the proposal as government-run "ration shops" and questioning how the discounts could be sustained. "This is completely insane. Also not possible unless taxpayers are subsidizing all the groceries. Grocery store profits are tiny, a few percentage points a year, at best," wrote Outkick Founder Clay Travis. The proposal has sparked skepticism from economists and commentators over how the city could deliver such steep discounts in an industry known for razor-thin profit margins. With grocery prices up about 33% nationwide since 2019, critics say the plan must explain how prices could undercut private retailers by 30% without significant public subsidies. "So not only will New York taxpayers pay $70 million to build government-run grocery stores – they will also pay subsidies in perpetuity to keep them afloat while funding unfair competition against legitimate small businesses. One more problem with socialism: you eventually run out of other people’s money," said Small Business Administration administrator Kelly Loeffler. MAMDANI’S PUBLIC GROCERY STORES MAY HAVE DEVASTATING EFFECTS ON CITY'S FOOD SUPPLY "America discovers ration shops," posted one user on X. "This has literally never worked. But sure, go ahead and screw New Yorkers over with your communist fantasy," said the Republican National Committee account. "There are thousands of grocery stores in NYC. Opening 5 taxpayer subsidized Commie convenience stores is a drop in the ocean. Whole thing is absurd," said Fox News Contributor Buck Sexton. "We all know how this story will end. It's probably attempt number one million to make socialism work. Spoiler: it will be a total failure," Latin America Watch director Agustín Antonetti wrote on X. "Welcome to socialism, New York City. Enjoy the ride," wrote the Turning Poi…