Business leaders are threatening to leave NYC amid Zohran Mamdani’s ascension. This scenario has been unfolded previously. What happened here

Zoran Mamdanithe 33-year-old Queens member from Congress took command in the city’s Democratic primary on Tuesday, leading the charge after a relentless focus on a campaign that proposed city-run food and free buses and childcare. For 1% of the city and its business elite, it’s a five alarm fire.

“The business community’s response to the victory of democratic socialist members is a combination of surprise and deep concern,” said Kathryn Wilde, CEO of the New York City Partnership. luck By email. Since few people have met him, “their opinions are defined by the rhetoric of his campaign and the negative ads cast against him,” she said.

Billionaire Hedge Fund Manager Bill Ackman Mam dani and runners, everyone is offered to runners to his mayor, suggesting that his mayor promotes flight in Ultra Rich. “If 100 of the highest taxpayers in my industry choose to spend 183 days elsewhere, I can cut tax revenues in New York and the city by more than $5 million to $10 billion. That’s my industry. x Thursday.

John Castimatidis, owner of grocery chain Gristdes, moved his corporate office to New Jersey during Mamdani’s term, with financial analyst Jim Bianco floating around. defendant “The mayor chose to commit suicide,” New York. Gov. Kathy Hochul has positioned herself as a medium-sized professional business and has preemptively identified the ideas for tax hikes that the state needs to approve. I’m saying“I don’t want to lose any more people to Palm Beach.”

It’s easy to talk about, it’s difficult to move

Is New York City at risk of billionaires leaving? History suggests no.

This is not the first time a Wall Street mouthpiece and a disgruntled business owner has threatened to lift the progressive mayor-elect and leave. In 2013, Bill de Blasio siphoned high-income New Yorkers and won mayor on a tax-rich platform, but de Blasio I met Manhattan industry leaders, such as former Goldman Sachs CEOs Lloyd Blankfein and Rupert Murdoch, have won elites. The big names stayed, and so were Wall Street residents. Meanwhile, De Blasio has implemented a proven universal Pre-K program Becoming an economical game changer And it helped to reduce it Income inequality.

Still, in recent years we have seen well-known examples of billionaires leaving Northern states in Florida or Texas, including Citadel founder Ken Griffin, who moved from Chicago. Florida in 2022Carl Icahn, a billionaire investor who left New York in 2019 with New York heading towards Sunshine State. It has been reported.

The reality is that choosing a place to move includes many factors, not just for individuals but for businesses, including what the location offers and the cost.

“What makes New York attractive is that it has a great labor market in terms of having great human capital. Companies want to be here. luck.

Champene added that, like other factors, high taxes regenerate into the equation. New York City, which counts state and local taxes, is collecting an average of $12,751 per person, exceeding California’s $10,346. “We’re way above average and significantly higher than our high tax status,” she said. “There is always a risk that people choose to relocate, and businesses choose to relocate, but increasing taxes will increase that risk.”

Back to ’80s?

Not all businesses can physically recover and leave, but the New York real estate department fears that if Mamdani pulls out the promise to freeze rent, money will do exactly. For millions On a major campaign by rival Andrew Cuomo.

Kenny Burgos, CEO of the New York Housing Association, who represents the landlord, arguing that further restrictions on rent would affect the landlord’s ability to pay for repairs, making 40% of the city’s property affordable and ultimately causing property owners to “walking” the property owner.

“There are vacant, degraded buildings, abandoned buildings, just like the Bronx had in the ’70s and ’80s,” he said. luck. “You cannot pick them up and go anywhere else with them, so we are forced to compete with potential administrations that are threatening the very viability of these buildings. ”

Certainly, during these decades, the landlord’s large amounts of wealth forced the city and its tenants to take over much of the housing stock, leading to the creation of low-cost apartments of hundreds of thousands. Because of the perspective, the current mayor of New York struggled to get approval program Build 80,000 new units over 15 years.

New York City CEO Kathryn Wilde’s partnership encourages members to focus on facts. “Many of Mamdani’s agenda cannot be achieved by the mayor, but it is the mayor and the state legislature. Partnership members are planning to meet with the candidates, and he is “very open,” she added.

Progressive economist Paul Krugman is one of many who thinks the possibility of a crime-fueled loop of fate that accelerates New York’s deterioration is exaggerated. Compared to crime in the 1980s, “New York is one of the safest places in America, and perhaps as safe as ever,” he recalls his own childhood, growing up in the city’s suburbs when Times Square was full of sex shops, deploying private safety to protect teacher homes.

“The New York issue is no longer ramp-prolonged crime or scary immigrants. It’s affordable.” He wrote. “And while Mamdani’s potential for success in proposals can and should be discussed, affordability was his main focus.”