By Idrees Kahloon
Monday, July 06, 2026
This past January, in his inaugural address, Zohran
Mamdani memorably promised to “replace the frigidity of rugged individualism
with the warmth of collectivism.” In the parlance of the Democratic Socialists
of America, of which Mamdani is a member, collectivism is a good thing. It is
not meant to recall Stalin’s seizure of farms, which resulted in mass famine,
or Mao’s Great Leap Forward, which also resulted in mass famine. American
socialism today is different. The DSA still formally aspires to “popular
control of resources and production,” otherwise known as seizing the means of
production. Yet the New York City mayor’s attention-grabbing policy
proposals—to freeze rents, establish city-run grocery stores, and pay for
universal child care—are aimed at a more modest goal: socializing the cost of
consumption.
“Consumer socialism” does not liberate workers from the
exploitation of owners; it liberates consumers from the burden of prices.
Although its advocates may claim inspiration from both the Great Society
tradition of the Democratic Party and Nordic-style democratic socialism,
consumer socialism is really a muddle of the two. The Great Society emphasized
poverty reduction through means-tested programs such as Medicaid and Head
Start; consumer socialism is meant for all. And unlike the Nordic welfare states,
which are supported by high levels of taxation for all workers, Mamdani’s
approach aims to raise sufficient revenue from corporations and the rich.
Consumer socialism tries to have it all: universal social provisions without
universally steep taxes. It retains, like other forms of socialism, a supreme
optimism in the ability of state planners to shape markets. Where the old
central planners failed, the new ones think they will succeed.
Mamdani is only one of consumer socialism’s proponents.
The newly elected mayor of Seattle, Katie Wilson, is a former transit organizer
who campaigned on both universal child care and spending $1 billion to pay for
union-built public housing. The leading candidate for mayor of Washington,
D.C., is DSA-backed Janeese Lewis George, who also calls for universal child
care and massive production of below-market-rate housing. (She is open to the
idea of government-run grocery stores as well.) Mamdani, Wilson, and Lewis
George have claimed the mantle not of Stalinists or Maoists, but of a different
subspecies of socialist—the “sewer socialists” who ran
Milwaukee for decades starting in 1910. They made peace with the capitalist
superstructure and devoted themselves to good, incorruptible governance and
reliable public infrastructure—sewage systems, yes, but also parks, libraries,
and fire departments. In their time, they were skewered for practicing
“slowcialism.” In a speech he gave to mark his 100th day in office, Mamdani
labeled “our 2026 answer to sewer socialism” as “pothole politics”—doing
mundane jobs, such as filling more than 100,000 potholes, because “government is
not too busy, not too self-important, not too mired in paperwork to fix the
problems of this city.”
Sewer socialism is attracting renewed interest in America
because it is too boring to threaten capitalism. Lenin despised its
predecessor, municipal socialism, for much the same reason. In the late 19th
century in English and German cities, socialist administrators operated public
utilities such as gasworks, electric trams, and even city-owned
slaughterhouses. This variation of socialism aimed to blunt the rapacity of
capitalism rather than sharpen its contradictions and hasten the coming
revolution. Under municipal socialism, Lenin wrote in 1907, “attention is
diverted to the sphere of minor local questions, being directed not to the
question of the class rule of the bourgeoisie, nor to the question of the chief
instruments of that rule, but to the question of distributing the crumbs
thrown by the rich bourgeoisie for the ‘needs of the population.’ ”
Lenin’s ghost would be similarly unimpressed with
contemporary American socialism—too much democracy, too little murder. Still,
there’s nothing small-bore about consumer socialists’ desire to overhaul the
economy. In their view, high prices are not market failures but moral ones, the
result of greed and corruption, which can be vanquished with the right
intention. The ideal state is a kind of Lake Wobegon, where every price is
below average.
***
One irony of consumer socialism is that it is better
tailored to the laptop classes—which now form the backbone of the Democratic
Party—than to the American left’s traditional working-class base. The upper
classes disproportionately use child-care centers, while lower-income
households rely more on stay-at-home parents and relatives. This is partly
because wealthier people can more easily afford formal care services. But not
every community may even want to send their kids to a child-care center. Some
evidence suggests that Latina mothers prefer to have a relative look after
their children, even when cost is no issue. Rent stabilization and controls
apply to units, not occupants—which in New York has sometimes meant showering
benefits on celebrities and on politicians, such as former Governor David
Paterson and the late Representative Charles Rangel. Upper-middle-class
meritocrats are generally not exhausted by capitalism. They are exhausted by
the costs of rent and child care in desirable neighborhoods—bills that the preexisting
means-tested welfare state would never have covered.
Mamdani will probably fall short of implementing his
vision: Budget constraints mean that buses are unlikely to be free, as he
promised; his child-care proposal received funds to last for just two years so
far; and New York, a city of more than 8 million people, will have, at most,
five city-run grocery stores by the end of his first term. Despite his pledges
to tax the rich, he is limited in his ability to do so, and although his
recently passed pied-à-terre tax might raise $500 million a year, universal child
care would, according
to his own campaign, cost $6 billion a year.
The natural habitat of consumer socialism—solidly
left-wing American cities—imposes serious limits on its ambitions. Unlike the
federal government, cities typically cannot run huge deficits year after year,
and must quickly reckon with promises that cannot be paid for. In 2018, New
York City officials rolled out a voucher program with an unwieldy name,
CityFHEPS, and the laudable goal of decreasing homelessness by subsidizing
housing. In 2019, the annual cost of the program was budgeted at $25 million; its
projected cost last fiscal year reached $1.7 billion, as the number of
recipients and the cost per voucher increased simultaneously. Faced with the
city’s daunting budget deficit, Mamdani reversed
his campaign pledge to expand CityFHEPS and has instead scrambled for ways
to hold costs down.
Many risks lurk in consumer socialism’s promises of cheap
goods and services. If New York City or Washington, D.C., rapidly increases
subsidies for child care, for instance, without expanding the number of
approved providers, the existing ones will charge more to meet excessive
demand. Another complication is that the more generous any city benefits are,
the more people will move across municipal limits to use them—creating a cost
spiral.
The sewer socialists chose their targets carefully.
Milwaukee’s mayors had a strong economic rationale for pursuing public
ownership of utilities: avoiding the massive, duplicative costs of rival water
networks without letting a private monopoly gouge consumers. In contrast,
publicly run grocery stores are interventions in a low-margin, highly
competitive industry. In his 100-days speech, Mamdani pledged, “At our stores,
eggs will be cheaper. Bread will be cheaper. Grocery shopping will no longer be
an unsolvable equation.” But the mathematics of running retail outlets might
prove more flummoxing than he realizes. Many aspects of life in the Soviet
Union have come to be retroactively romanticized; its grocery stores are not
among them.
Optimists think—or hope—that Mamdani-style socialists
have a greater awareness of economic constraints than they let on. My colleague
Derek Thompson recently said that Mamdani may be sporting “the
abundance mullet, which is to say, economic populism in the front and
abundance in the back.” Abundance is a term that Thompson coined
in this magazine to describe policies that expand supply through public and
private investment and deregulation—essentially supply-side economics for
liberals. The idea is that Mamdani would win popular support by freezing
rents—an idea almost unanimously derided by economists—while simultaneously
boosting home-building. But the second half of this bargain may never
materialize. Although New York’s Rent Guidelines Board has approved
a promised freeze for nearly 1 million rent-stabilized apartments,
Mamdani’s efforts to permit more home-building have been plodding by
comparison. Absent new supply, restrictions on rent increases will limit
mobility for those who receive the benefit, and increase costs for those who do
not.
***
Plans are already afoot to scale consumer socialism
across America. National Democrats have realized that the high cost of living
makes for a powerful midterm-election theme, and some in the party prefer to
address it with subsidies and price controls rather than measures that increase
personal incomes and economic growth. The Congressional Progressive Caucus
recently released its “New Affordability Agenda,” which includes plans to make
child care a nationwide entitlement—staffed by day-care workers paid as much as
teachers—and to create a new set of housing subsidies for rent and down
payments. Progressives also argue that this can be financed without tax hikes
on ordinary people, but through targeted taxes on plutocrats and corporations.
Enacting any such changes nationwide would require many more votes than the
caucus currently has. And the problem with implementing such plans at the local
level is that the rich can always decamp to Austin or Miami, as some of
California’s billionaires are threatening
to do over a ballot measure that would take 5 percent of their wealth.
Perhaps cities like New York will refine a functional
version of consumer socialism, in which subsidies are balanced with enormous
supply-side expansions in the number of homes and child-care centers, leaving
everyone better off. Perhaps capitalism can be appropriately fettered within
the confines of a select few cities, inspiring a nonviolent, nationwide
socialist revolution. That would be a remarkable triumph for Mamdani’s
consumerist ideology, which wears the transgressive label of socialism but is born
primarily out of anger over prices (and an innate American antipathy toward
taxes). American collectivism may be, as Mamdani promised, warmer than rugged
individualism. It will certainly be warmer than Soviet or Maoist collectivism.
It could also be just as unworkable. And it will certainly be extraordinarily
expensive.