A crushing blow to the elite: New York City mayor removes billionaires from city hall
According to a Wall Street Journal report, Mayor Zohran Mamdani fired dozens of senior executives and tycoons this week from the 'Mayor's Fund to Advance New York City.' Officials note that following his actions, other companies are eyeing locations outside of New York.
The business elite of New York City has been accustomed for decades to direct access to the corridors of power. In the past, even Democratic mayors felt a clear need to court the heads of the wealthiest and most influential corporations. Now, this approach is being completely shelved under the leadership of the new mayor, Zohran Mamdani.
According to a report by the Wall Street Journal, Mamdani fired dozens of senior executives and tycoons this week from the advisory board of the 'Mayor's Fund to Advance New York City.' This is a philanthropic organization that handles millions of dollars and uses private donors to help fund municipal goals. The dramatic move was perceived on Wall Street and in the real estate industry as a clear signal that the mayor is not interested in the opinion of the business community. Mamdani, who defines himself as a democratic socialist, stated that he is assembling a new committee that will also include people who 'were often not at the center of the conversation about how philanthropy can build public goods.'
This step represents a new front in Mamdani's efforts to distance himself from the city's traditional power centers. Previously, he filmed a stinging video outside the apartment of billionaire Ken Griffin to expose a new tax on vacation homes, and even mocked the wealthy on the social network X when he recommended they prepare their mailboxes. In addition, he appointed Lina Khan, a well-known fighter against monopolies, to head the city's Economic Development Corporation — a body that the real estate community relies on heavily.
'If you have a second home in New York City worth more than $5M, check your mailbox when you’re back in the five boroughs — because you've got mail. Today, we sent notification letters to property owners, letting them know that our new pied-à-terre tax is coming soon.'
In the business sector, there is frustration and concern about the new situation. James Whelan, president of the Real Estate Board of New York who was fired from the fund, recalled how developers could once promote projects on their own, and added that now it must be examined 'whether the mayor is looking for opportunities to stir up trouble to excite his base.' Steven Polop, president of the 'Partnership for New York City,' warned that 'the mayor's tone has become more combative toward the business community.' Jessica Walker, CEO of the Manhattan Chamber of Commerce, emphasized that Mamdani is seeking to raise $20 million for childcare: 'Money doesn't come from a mailing list. It comes from people who answer the phone. And he just gave up on the people who answer the phone.'
Despite the confrontations, there were also a few words of praise for Mamdani's efforts to ease regulations for small businesses and for the appointment of the respected Tony Shorris. At the same time, billionaires like Griffin and Bill Ackman are not leaving and continue to invest in massive developments in the city. However, senior officials note that other companies are already eyeing more friendly locations outside of New York, which raises a question mark regarding the city's economic future.
