Recently, Zohran Mamdani, the mayor of New York City, used Ken Griffin as the backdrop for a video promoting the idea that wealthy New Yorkers need to be punished for their success. In a video, Mamdani criticized Griffin’s “pied a terre” as representative of the fact that the wealthy do not pay enough in taxes, especially those who are not full-time residents of New York.
Griffin, a hugely successful entrepreneur who created Citadel and Citadel Securities, recently moved his operations from Chicago to South Florida following the decline in safety and services driven by the incompetence of the Chicago city government. Citadel currently employs around 6,000 individuals worldwide and continues to grow.
At the moment, Citadel plans to develop a new office in Midtown Manhattan, which is expected to generate over 15,000 permanent jobs and support 6,000 construction workers. While placing the Citadel New York City project at risk, Mamdani’s cheap PR stunt elicited a response from Griffin and his company.
As Griffin shared yesterday, they were cutting the number of jobs they had anticipated creating in NYC and moving them to their new Miami office. Griffin noted that job creators should not be taken for granted, drawing a parallel to the decline of Detroit, which was once one of the wealthiest cities in the world. At one point, Citadel considered New York City as an option for its headquarters but eventually chose Miami, which Griffin declared was now “unquestionably the right choice.”
In response to Griffin’s comments criticizing the Mayor, which were shared on CNBC, Mamdani’s press secretary issued the following statement:
“Mayor Mamdani wants all New Yorkers to succeed. That includes business owners and entrepreneurs who create good-paying jobs and make this city the economic engine of America. It also includes Ken Griffin, who is a major employer in our City and a powerful figure in our economy. That does not negate the fact, however, that our tax system is fundamentally broken. It rewards extreme wealth while pushing working people to the brink. If we want this city to become a place that working people can afford, we need meaningful tax reform that includes the wealthiest New Yorkers contributing their fair share.”
Note that the “fair share” statement is not defined, but more of a shoddy campaign slogan than a policy strategy.
Citadel’s development in Manhattan remains a “point of discussion” at the firm, and the company states that it is doubling down on Miami. While it is difficult to estimate the loss of jobs and tax revenue resulting from the Mayor’s damaging comments, it will be considerable, undermining New York City’s ability to fill its growing budget deficit.