On the 24th (local time), in the Democratic primary election for mayor in the U.S., 33-year-old ‘socialist’ Zohran Mamdani, a member of the New York State Assembly, won, transforming New York, the world’s financial center, into an unprecedented experimental ground for left-populist policies.

Mamdani garnered 43.5% of the votes in the primary election, overwhelmingly defeating 67-year-old former New York Governor Andrew Cuomo (36%). In progressive stronghold New York, it is firmly established that ‘the Democratic primary is effectively the final round’ since the election of Mayor David Dinkins in 1989.

In the past 46 years, only Michael Bloomberg has defeated the Democratic primary winner in the mayoral general election. A lifelong Democrat, Bloomberg switched parties to the Republicans to run for mayor in 2001. Since Bloomberg, no Republican mayor has emerged in New York.

Zohran Mamdani is giving a speech at the city hall party commemorating the primary election victory on the 25th. /Courtesy of Yonhap News

Mamdani’s victory is indicative of the distinct leftward shift in New York. As part of his campaign promises for mayor, he has proposed free public transportation, rent freezes, a $10 billion tax increase on corporations, and a doubling of the minimum wage.

U.S. media outlets, including The New York Times (NYT) and Axios, predict that New York’s economic ecosystem and the lifestyles of its 8.5 million residents will fundamentally change after Mamdani’s inauguration.

The policy most likely to be implemented quickly is ‘free bus service.’ Currently, subway and bus fares in New York are $2.90 (approximately 3,940 won). If free buses are realized in New York, it is expected to alleviate the transportation cost burden on citizens, amounting to billions of dollars annually.

Mamdani has a track record of successfully piloting free service on five bus routes in the Queens area during his time as a state assemblyman. He noted, “If transportation accessibility improves, the connection between low-income communities and Manhattan’s business district will strengthen, greatly increasing mobility between classes.”

The New York City primary election mayoral candidates, including Zohran Mamdani from the Democratic Party and Andrew Cuomo, appear on the ranked-choice ballot on Tuesday the 24th in New York. /Courtesy of Yonhap News

The ‘rent freeze’ policy indicates a seismic shift in New York’s real estate market. Currently, one-fourth of New Yorkers spend nearly 40% of their income on rent. Preventing rent increases could provide direct and immediate benefits to millions of New Yorkers.

In contrast, the New York real estate industry has strongly opposed this policy, warning that it could lead to decreased investment and a halt to new developments. The average rent for a one-bedroom apartment in Manhattan has now surpassed $4,000 per month. It is expected that enforcing a rent freeze policy could also halt gentrification, the phenomenon where renters are displaced due to rising rents.

‘A minimum wage of $30’ pledge is also radical. The current minimum wage in New York City is $15 per hour. With a high population density and a significant portion of the labor force in the service industry, the ratio of minimum wage workers is also high. Mamdani stated he would double the minimum wage by 2030. If realized, the average annual salary in New York City could reach $62,400 (approximately 85 million won) by 2030, nearing the national median level.

However, small businesses and self-employed individuals have warned that it will lead to ‘employment cliffs’ and accelerate automation due to rising labor costs. Many of Mamdani’s supporters are Muslim self-employed individuals sensitive to wages, with media outlets predicting significant conflicts during the actual implementation process.

On the 24th, people are filling out the New York City primary election ballots at the polling station in the Brooklyn Museum in Brooklyn, New York. /Courtesy of Yonhap News

The $10 billion (approximately 13.6 trillion won) tax increase targeting corporations and the wealthy is a major pledge that could reshape New York’s tax policy. Currently, the annual budget of New York City is around $106 billion. If the pledge is realized, it could yield nearly a 10% increase in tax revenue.

The progressive camp has welcomed the move. Notable international economists, including former Greek Finance Minister Yanis Varoufakis, supported the view that ‘Mamdani’s proposed plan is a bold and practical blueprint for building a fairer and more prosperous New York while directly improving the lives of millions of New Yorkers.’

However, Wall Street reacted strongly against this. Grocery chain Gristedes owner John Catsimatidis threatened, saying, ‘If Mamdani becomes mayor, I will close the New York headquarters and sell the business,’ adding, ‘the headquarters will transfer to New Jersey.’

Activist hedge fund investor Bill Ackman, known as ‘Baby Buffett’ on Wall Street, also warned, ‘If Mamdani becomes mayor, we will see a corporate exodus from New York.’

Zohran Mamdani, a New York State Assembly member, is greeting voters with the New York City Comptroller and mayoral candidate Brad Lander on Broadway in New York City on the 24th. /Courtesy of Yonhap News

Born in Kampala, Uganda, in 1991, Mamdani moved to New York at the age of 7. His father is Columbia University professor Mahmood Mamdani, and his mother is Academy Award-nominated filmmaker Mira Nair. He became a U.S. citizen in 2018 and was first elected to the New York State Assembly in 2020.

If Mamdani is elected, he will become New York City’s first Muslim mayor and its youngest mayor. Despite his elite educational background, he has proclaimed a politics of the people based on his experience helping low-income communities of color prevent evictions as a housing counselor.

In 2021, he staged a 15-day hunger strike to resolve issues related to the collective loans of taxi drivers, resulting in a debt forgiveness of $450 million.

He currently enjoys full support from prominent figures leading American progressive politics, including Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez.

Within the Democratic Party, Mamdani is compared to Alexandria Ocasio-Cortez, who achieved a shocking election victory in 2018, differentiating himself from established politicians. Ocasio-Cortez won her seat in the House by defeating veteran lawmaker Joseph Crowley, who had held the position for 18 years.

Since then, young progressive candidates have been emerging throughout the U.S. by defeating established politicians in succession.

Senator Bernie Sanders (Independent, Vermont) (left) is greeting Representative Alexandria Ocasio-Cortez (Democrat, New York) during the 'Stand Against Oligarchy' tour held in March at Civic Center Park in Denver, USA. /Courtesy of Yonhap News

The changes in New York led by Mamdani are expected to influence other major cities in the U.S. where similar candidates have taken the helm. The introduction of socialist policies in New York, home to Wall Street, carries significant symbolic weight.

In Democratic strongholds like Chicago, Los Angeles, and San Francisco, pressure to introduce similar progressive policies is anticipated to intensify.

There are also concerns that local governments with progressive tendencies may engage in ‘policy wars’ with the second Trump administration.

The Economist in the U.K. reported that ‘New York will become a testing ground for the first direct implementation of a Nordic-style social democracy model in a major U.S. city.’