With today’s Mayoral election in New York City, many observers are worried about the consequences of a potential socialist or communist taking office to manage the world’s most vibrant city and top global financial center. Neophyte politician Zohran Mamdani has seen his poll numbers tighten in recent days in his battle to win the election against former New York Governor Andrew Cuomo (and spoiler Curtis Sliwa). However, Mamdani still maintains a solid lead, with one poll having Mamdani at 49.7% and Cuomo receiving 44.1% of the vote. We should know the outcome soon enough.
Mamdani, while recently attempting to repackage his views as less extreme, has been filmed making incredible claims of wanting to “seize methods of production,” and “globalizing the intifada,” or a desire to “defund the police.” The proposal for city-owned grocery stores has failed everywhere else, but I guess this time it is different.
“Taxation isn’t theft. Capitalism is.”
Zohran Mamdani majored in ‘African Studies’ pic.twitter.com/Xz4pAfpZBY
— Geiger Capital (@Geiger_Capital) November 4, 2025
While claiming he would enact policies to cut the cost of living in Manhattan, nothing could be further from reality, as his ambition to lower rents and make public transport free would obviously have the opposite effect. Mamdani also wants to increase the tax burden on wealthy New Yorkers, another obtuse policy that will, once again, have the opposite effect on the city’s finances, as the affluent flee to states and communities that better understand economics.
New York City is widely recognized as the top financial services hub. The 38th edition of the Global Financial Centres Index (GFCI 38) has New York City leading the pack since 2018. London follows NYC, then Hong Kong and Singapore in 3rd and 4th place, respectively.
Obviously, the trailing cities would love to usurp Manhattan’s dominance by improving their standing.
New York City is also home to more than 600 Fintechs, which drive innovation, add to the wealth-creation equation, and boost competition, thus improving services.
New York City is known as the city that never sleeps, with great culture, dining, and entertainment, attracting residents and tourists alike. The ability to pay for public services in the city hinges on financial services, concentrated in NYC, which account for about 30% of the state’s entire economic output. There are more than 330,000 employees in the financial services industry in New York City. Big global bank JPMorgan has around 24,000 employees in NYC. Top investment bank Goldman Sachs has around 7800. Of course, due to the multiplier effect, these high-paying jobs generate wealth and prosperity for all, as they tend to live, shop, and eat in the city, sustaining services and retail storefronts—not to mention real estate. The multiplier effect fills the city’s coffers to fund public education and shared services. In effect, financial services are the golden goose that keeps on laying golden eggs.
But, as in many economic ecosystems, things are not static and change will happen. A city that takes wealth for granted can eventually lose its luster and chase it away, sending the local economy into a downward spiral. This is bad for everyone because these same businesses drive tax revenue, supporting public services and cultural venues. And once lost, they can be gone for good or a very long time.
A recent article by The Economist highlights the possible ramifications of a Mamdani win. New York City has been losing the battle for financial services jobs for years as taxes rise, crime is handled ineffectively, and other jurisdictions seek to lure these firms to with friendlier policies. The report highlights that “10% of households in New York City with incomes of more than $10 million established residency elsewhere between 2018 and 2023.”
The report shares that financial and insurance sector jobs created in the US are now moving to other cities, and New York is no longer the top option. In first place is Texas, followed by Florida, with New York landing in 5th place. And New York is not even close in this tally: Texas saw around 100,000 new finance jobs during the period, Florida around 60,000, while New York trailed with around 20,000.
The numbers represent jobs created from January 2020 to March 2025, so this is not a recent phenomenon. If the past is prologue—and a Mamdani win happens—this trend could accelerate as wealth creators vote with their feet and choose Miami over Manhattan.
Disincentives for people to live in New York City and businesses to locate in the jurisdiction will have a cascading effect under Marxist policies, even if they are delivered with a smile to the unwitting. This much should be obvious to all, but apparently it is not.
The Economist warns that the “dimming of the city’s pre-eminence in finance comes at a time when markets are booming, banks are in rude health and unemployment is low. What might happen if America’s economy were to slow and the banking industry [fell] on hard times?”
So who wins in all of this if Mamdami takes over Gotham?
Welp, Florida is already experiencing an ongoing boom in people relocating from states and cities with ineffective leadership, driving a boom in real estate. The finance sector has long been a driver of Florida’s job growth, with “thousands” of finance jobs created each month. While still far behind New York City, Miami-Dade County reports approximately 150,000 financial services jobs. Some estimates put the number of Fintechs in Miami at over 500. Other Florida cities have also benefited from the escape from New York theme.
In Dallas, Wells Fargo opened a campus to house around 4500 employees. Goldman Sachs established a significant presence by hiring 5,000 employees. Charles Schwab simply closed its San Francisco office and moved its HQ to Dallas in 2021.
The list is long and growing longer.
This Time It Will Be Different.
Socialist/Communist/Marxist policies have never worked anywhere. These policies create the most elite environments and punish the most with poverty. This is a fact. Yet utopian proclamations of free things and better services continue to dupe the naive. In the 1980s, Venezuela was the 3rd-wealthiest country in the hemisphere, after the US and Canada. Today, it’s one big autocratic, impoverished, socialist mess. Maybe a Mamdami administration is just what New Yorkers need to jolt them out of their hypnotic stupor of irrationality. Let’s hope it happens sooner rather than later.