Friedberg: Mamdani's Groceries Could Spread Socialism

Venture capitalist David Friedberg says critics underestimate New York Mayor Zohran Mamdani's city-run grocery stores.

"Everyone's got it a little bit wrong in assuming that this thing is going to radically fail," Friedberg said on a recent episode of "The All-In" Podcast, which he cohosts.

Friedberg called it "a sad state" that the government-subsidized stores, a core campaign promise, will likely open and inspire copycats across the country once people see them in action.

"I think that these things are going to create a radical spectacle, an exuberance for socialist policies that's going to kind of light a fire for socialism around the country, unfortunately," Friedberg said. "Because at the end of the day, no one has to pay the bill, because the bill doesn't come due for some time."

The plan has drawn criticism. Red Apple Group CEO John Catsimatidis, a grocery magnate and longtime friend of President Donald Trump, told Fox Business that Mamdani's plan was "trying to create something that's not viable."

Friedberg acknowledged the viability question. He said the stores will force the city to offer more free stuff to cover inflation costs. In the near term, he expects them to be popular.

"They're going to outperform Whole Foods. They're going to outperform Safeway. They're going to outperform Albertsons," Friedberg said. "They're going to be so in demand that what will end up happening is that over the next 24 months, every other city in America will look to these grocery stores and say, 'We want the same. Why does only New York get these grocery stores?'"

Under the plan, New York will open five grocery stores, one in each borough. Mamdani previously said the stores will offer a 30% discount on "the most common and most critical groceries for families" – fresh produce, meat, and dairy. The city has set aside $70 million to launch the stores, with additional funding to come once operational. The first store, in the Bronx, is scheduled to open in 2027.

Friedberg and his podcast cohosts have criticized the rise of socialism broadly. Several Democratic Socialists of America-backed candidates have won congressional primaries this year in New York, Colorado, and Pennsylvania.

"A big part of the multi-level marketing scheme of socialism is to create spectacle," Friedberg said. "And it will create more spectacle that will help to fuel the multi-level marketing scheme of socialism. And remember, the problem with all multi-level marketing schemes at the end of the day is someone has to pay the bill."

Polls show Americans remain skeptical of socialism. Last fall, Gallup found that 54% of Americans had a positive view of capitalism – the lowest since the firm began tracking such opinions in 2010. Only 39% had a positive view of socialism.

The picture differs by party. More than 6 in 10 Democrats view socialism positively, compared with 14% of Republicans and 38% of independents, Gallup found.

A Washington Post-Ipsos poll taken after recent democratic socialist primary wins found that 3 in 4 Democrats would consider supporting a candidate with that ideology for president. A majority of Americans – 55% – said they would not.

Sen. Bernie Sanders, an independent from Vermont who calls himself a democratic socialist but is not a DSA member, ran for the Democratic presidential nomination in 2016 and 2020.