By Marc Cuniberti
I never thought I would see the day. In the past however, I have always thought I would never actually see the day of something, only to see it, so I know better.
Basically, the world is full of surprises and going along the lines of my previous article June, 2025 entitled “Relax, it’s just life”, when we think things couldn’t get any worse, or whatever might happen will forever send us into the abyss, we press on, and live on, and the Earth just continues to spin on.
Newly-elected New York City Mayor Zohran Mamdani
So, unarguably, the financial (and capitalistic) capital of the world, New York City, has just elected a self-proclaimed socialist as its mayor.
Will wonders never cease?
No, wonders will never cease to amaze and surprise mankind. And it will likely continue that way long past the time when you and I are dead and buried.
I really can’t blame the people of the Big Apple for their choice, but I can also say I don’t agree with it. But after all, it is their decision.
The attempt at economic socialism has been tried many times. And I know there will be some that will point to some Nordic country or other dot of a nation and claim it works just fine there, so why not here? As such, I have my crash helmet on for the incoming.
But seriously, it is their right to vote for whoever they want. And I do understand why.
Throughout history, socialism comes about when a large group of people have trouble affording the basic cost of living yet see others possessing vast sums of money.
I can hear Bernie Sanders now. Oligarchs and billionaires are two words he says well and indeed; it is very effective the way he says them. It even scares me, and I am neither an oligarch or billionaire.
But neither abolishing the oligarchs nor billionaires will make anyone richer or better off. The Oligarchs and billionaires, wherever they may be, are usually the tax base for the society in question. Wiping out them out will wipe out what taxes are collected and thereby make the society even poorer.
But because people don’t really understand how economies and the money in those economies move to and fro, they catcall of government owned resources and government-controlled goods allocation strikes a chord with the masses. And when that chord is played loud enough and often enough, you get what New York just got: the green shoots of socialism taking root.
The truth of the matter and the crux of the problem is people can’t afford things. And when they can’t afford things and see people that can, they blame the current system, whatever that may be, and look for alternatives.
Along come the world improvers. Taking advantage of the calls for change, the communist/socialist agenda sounds like a path to election so enter the candidates touting same. Of course, the agenda always draws in many of the unfortunate.
Like I said, I can’t blame them. The agenda always sounds like the solution.
I have to place the blame squarely where it belongs however.
The root cause of affordability of the masses is inflation. And no, I am not talking about the current rate of inflation, or the ups and downs of inflation. I am talking about the ongoing and consistent inflation baked into the system for more than a century, here and abroad.
The fact that prices rise on everything, consistently over time, as governments spend more money than they take in, pushes prices up always and everywhere.
This would not be an issue if wages kept up with the inflation rate.
But wages always lag price increases. Always. It’s an unfortunate economic reality.
If wages can’t keep up, and they won’t, inflation enriches the rich even more, all the while increasing the number of impoverished.
That, in turn, causes more people to ask the government for help, and that causes the government to spend more money it doesn’t have, causing more inflation, and around and around we go.
That’s until Karl Marx rises from the dead, spews out the elixir of “we will fix all your problems”, and then you get the “New York solution”.
And yes, I just coined that word.
In conclusion, the New York solution, which now is a socialistic mayor, will fail. Socialism always does.
But it’s a lesson learned, and unfortunately, is not passed on from generation to generation. Each generation must painfully learn if for themselves. And they will.
And yes, my helmet is on.
Let em fly!
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This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 His insurance agency is BAP INC. insurance services. Email: [email protected].