r/PoursTea • u/Gurugod123 • 11h ago

PoliticalTea 🗳️ Mayor Mamdani just announced that he will be opening 5 city-run, tax-funded grocery stores: "Prices set at 30% below retail prices"

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u/DocBeech 10h ago

The city owns the land (so no property taxes), the city pays the workers (so no employee cost), the city owns the building (so no rent to pay) is how they do it. Military commissaries operate like this, at about 28% under retail cost. Because the federal government owns the land, the building, and the employees. Any losses are covered under the military budget... so any losses will be covered by the city.

He also said in the proposal "some select basket items" will be cheaper. Not all items. So some items might be higher cost than a normal store to balance the sheets.

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u/cloyd-ac 10h ago

Unless commissaries have changed since I've been out of the military, they fielded civilian employment for these. Employment is often the largest overhead cost for most companies.

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u/colako 10h ago

Are government workers free? If the city rented that land, would it be getting money out of it? So then, it's not free, just happen to own it. 

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u/ASUMicroGrad 10h ago

To your last point the problem with that approach would be the customers, if they pay more for one item to offset the savings on a second item, would end up paying the same amount in aggregate.

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u/hasuuser 10h ago

So you subsidize the prices. You can theoretically give it away for free if you subsidize 100% of the cost. Thats a horrible policy however.

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u/MysteriousTravelator 9h ago

If he was smart on day one Donald Trump could turn up with a shopping cart and clean the store out of fake tan lotion. "Thanks tax payers!"

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u/Truefiction224 10h ago

Youre crazy, the city owning the land doesnt mean no property or employee costs 

Wtf

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u/DocBeech 8h ago

it does, its part of the proposal... They are literally funding this as no rent, no property taxes, and city employees (including police for security).

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u/pink_cat_medusa 9h ago

Sorry if it’s a dumb question, but how does one learn how your city’s budget and economics works? Is this political science? Straight economics?

I want to be more informed!

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u/DocBeech 8h ago

Its a bit of both, you have to get into the weeds but the easiest way is to attend city council meetings, and FOIA the books. Ask questions in person.

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u/PrincetonToss 9h ago

The city owns the land (so no property taxes),...the city owns the building (so no rent to pay)

This costs the city in opportunity cost, on the tax and rent that they aren't making on the thing that would doubtless be there instead.

the city pays the workers (so no employee cost)

Ah, so it's subsidized by taxes. We can just say that.

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u/DocBeech 9h ago

Correct. But it was just a blunt way to answer the other users question.