Mamdani’s class warfare against New York businesses is ‘economic vandalism’

Last fall, when New York’s business community warned that the election of a self-described democratic socialist as mayor would trigger an assault on the city’s economic engine, we were waved off as hysterical. The press assured us that Zohran Mamdani was “evolving,” that his rhetoric would soften, that we should focus instead on his vague promises of “affordability.”

That reassurance evaporated almost instantly.

Barely two weeks after his swearing-in — amid lofty rhetoric about the “warmth of collectivism” — the Mamdani administration unveiled its real agenda. Sam Levine, the newly installed Commissioner of the Department of Consumer and Worker Protection and a veteran of Lina Khan’s Federal Trade Commission, released a sensational report accusing companies like DoorDash and Uber Eats of “diverting” more than $500 million from delivery workers.

The charge was dramatic. It was also profoundly misleading.

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The report was less an exercise in economic analysis than a political weapon — crafted to inflame public opinion against large, visible companies operating in New York City. What it obscured is far more important than what it alleged.

In 2021, New York imposed a delivery-worker pay mandate exceeding $21 an hour — one of the highest in the nation, rivaled only by Seattle, another city governed by ideological experimentation. Proponents promised higher earnings without consequences. Economics, as usual, was ignored.

Anyone who has taken Economics 101 knows that artificially inflating labor costs does not create free prosperity. It raises prices, reduces demand and forces businesses to restructure. Unsurprisingly, delivery platforms responded by shifting tipping to post-checkout — exactly how tipping works in restaurants, ride-sharing and countless other service industries.

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That was not exploitation. It was adaptation.

Yet City Hall was not finished. Lawmakers then mandated that apps prompt tipping before service is rendered, requiring preset options of at least 10%. At a time when consumers already suffer from widespread “tip fatigue,” this was another blow to affordability — and to demand.

Levine’s report then claimed that these changes “cost” workers over $500 million. What the press conference omitted — though the report quietly admitted — was that delivery workers earned $1.2 billion more overall under the new system. That inconvenient fact did not fit the narrative, so it was buried.

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Even more telling: Levine’s own department had previously acknowledged this very dynamic. In 2022, DCWP explicitly stated that apps could discourage or eliminate tipping to offset higher mandated wages — and that workers would still receive substantial pay increases. Today’s outrage directly contradicts yesterday’s regulatory guidance.

Rather than correct course, the Mamdani administration doubled down. The mayor appeared at a press conference alongside activists demanding a $35-an-hour minimum wage for delivery workers — nearly double what many first responders earn. During his campaign, Mamdani promised $30 an hour by 2030. Now the demand is $35 immediately. Reality is optional; slogans are mandatory.

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Anyone who has taken Economics 101 knows that artificially inflating labor costs does not create free prosperity. It raises prices, reduces demand and forces businesses to restructure. 

What New York truly needs is not performative class warfare, but policies that expand take-home pay without destroying jobs. One obvious reform? End the tax on tips. Tips are not corporate profits; they are direct compensation from customer to worker. Taxing them penalizes service workers while discouraging generosity and transparency. Eliminating that tax would raise incomes instantly — without raising prices or killing jobs.

The broader issue is not delivery apps. It is a governing philosophy that treats profit as sin and enterprise as something to be punished. Using distorted reports to publicly shame companies is not leadership — it is economic vandalism.

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For New York to remain the world’s capital of commerce, it needs cooperation among workers, businesses and consumers — not ideological warfare. Affordability does not come from mandates and misinformation. It comes from growth, competition and policies that reward work.

Socialism has been tested countless times. It always fails. Let us hope New York’s new mayor learns that lesson quickly. If not, delivery companies won’t be the only casualties. Every entrepreneur, employer and investor in the city will soon find themselves in the crosshairs — and, as always, it will be ordinary New Yorkers who pay the price.

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