As some Greens squabble over Zohran Mamdani’s imperfections, the real story is bigger: what happens when a left-leaning mayor actually wins New York City—and whether finance, real estate, and their political allies wield a de-facto veto over popular mandates. The lesson will matter far beyond New York. It will tell Greens everywhere how power reacts when movements become governments. [1]
“Electing a single, lone, progressive politician is not enough to discipline the rich to pay for what all we need.” [1] Truthout
New York City is days away from a decision that’s already shaken U.S. politics. Zohran Mamdani—Queens Assemblymember, democratic socialist, and now the Democratic nominee—defeated a powerhouse primary opponent and heads into the Nov. 4 general election with national attention and sharp scrutiny. [2][3] AP News+1 Even late-breaking party unity underscored establishment anxiety: House Minority Leader Hakeem Jeffries only endorsed Mamdani on Oct. 24, reportedly after the candidate pledged to retain NYPD Commissioner Jessica Tisch—an olive branch to centrists and donors nervous about a movement mayor. [4] The Guardian
The debate inside Green and left spaces is familiar: Is Mamdani radical enough? Too conciliatory? Too focused on affordability and transit to the exclusion of other fights? These are real questions. But they risk missing the structural story: if a left-leaning mayor is sworn in, do finance and real-estate elites simply flip a switch—through credit markets, bond ratings, or political pressure—and make the city scream until reforms die on the vine? That’s the “capital strike” problem, and New York has lived it before. [1] Truthout
The 1975 playbook—and why it still matters
In 1975, New York City’s finances imploded. Banks abruptly refused to roll over the city’s short-term debt; the capital markets “closed,” and by April the city was out of cash. [7][8][9][10] Rockefeller Institute of Government+3Rockefeller Institute of Government+3Joint Economic Committee+3 Albany created two powerful state institutions—the Municipal Assistance Corporation (“Big MAC”) and the Emergency Financial Control Board (today’s New York State Financial Control Board, or FCB)—which seized budgetary authority and imposed austerity. [8][7] Joint Economic Committee+1
The results were sweeping: mass layoffs, wage freezes, transit fare hikes, and—for the first time in a century—CUNY students were charged tuition starting in 1976. [9] Baruch College – In November–December 1975, even public pension funds were tapped at crisis moments to keep the city from default; the Teachers’ Retirement System provided emergency cash to roll debt and make interest payments. [11] fordlibrarymuseum.gov
Political scientists later gave the structural diagnosis a name. Charles Lindblom called it the “privileged position of business”: when investors, landlords, and banks withhold investment, they don’t need a conspiracy to block policy—they just need to act “normally” in ways that punish change. That’s the market’s veto. [1] Truthout
What would the 1975 playbook look like in 2025?
Unlike the 1970s, New York City today enters this election with strong, stable credit: AA from Fitch and S&P, Aa2 from Moody’s, and AA+ from KBRA, reflecting resilient reserves and revenue controls. [5][6] NYC Comptroller+1 But those ratings—and the borrowing costs tied to them—are not politics-free. If financial elites decide a Mamdani agenda threatens their interests, they have levers:
- Refusing to roll short-term debt or demanding higher yields. This is how 1975 began. [7][8][10] Rockefeller Institute of Government+2Joint Economic Committee+2
- Rating-agency pressure. Outlook changes can raise debt service costs and trigger spending cuts elsewhere. (NYC’s current AA/Aa2 status is “stable,” but that can change.) [5][6] NYC Comptroller+1
- State re-intervention. The FCB still exists. It “sunsets,” but reviews NYC’s four-year plan quarterly and can recommend reimposing a formal control period if statutory conditions are met. [7] Financial Controls Board
- Preemption and the courts. When NYC passed its “Responsible Banking Act” to push big banks to serve communities better, a federal court struck it down as preempted by state and federal banking laws. [12] Harvard Law Forum on Governance
None of this requires a back-room conspiracy; it’s how structural power works. Which is precisely why Greens—and anyone who wants democratic control of shared resources—should watch New York closely.
- Current NYC credit: AA (Fitch & S&P), Aa2 (Moody’s), AA+ (KBRA) [5][6].
- Control board still active: FCB reviews NYC’s financial plan quarterly and can recommend reinstating a control period [7].
- 1975 crisis trigger: Banks stopped underwriting/rolling NYC debt; Albany created MAC & the Control Board [8][10].
- CUNY tuition: Free for a century, tuition began in 1976 amid austerity [9].
- Pensions tapped: Teachers’ fund stepped in to avert default during crunch dates in late 1975 [11].
Mamdani’s platform meets Albany—and Wall Street
Mamdani’s pitch—free city buses, expanded childcare, rent freezes for rent-stabilized tenants, and public options like municipally run groceries—lands during a national affordability crisis. [2][3] AP News+1 But much of the revenue side requires state approval: for example, raising high-earner or corporate taxes. Gov. Kathy Hochul has repeatedly signaled she does not intend to raise taxes, placing an immediate structural constraint on a NYC-only path to redistribute burdens. [3] ABC News
That’s the narrow aperture a Mamdani administration would face: deliver local equity in a state (and national) fiscal architecture designed to keep cities dependent on capital markets and Albany. It’s no accident that insiders touted Mamdani’s promise to retain Commissioner Tisch as a sign he can “reassure” markets and moderates. [4] The Guardian
What a “capital strike” could look like—and how to blunt it
Levers of pressure:
- Credit markets. If underwriters hesitate—or spreads widen—NYC’s debt service rises, squeezing the budget and forcing triage. 1975 shows how quickly “wait and see” becomes “no deal.” [7][8][10] Rockefeller Institute of Government+2Joint Economic Committee+2
- Ratings surveillance. A change from “stable” to “negative” outlook can ripple through borrowings and capital plans. [5][6] NYC Comptroller+1
- State oversight. The FCB’s statutory powers—and Albany’s ultimate control over tax law—mean a hostile governor can constrain a city agenda without ever saying “no” directly. [7][8] Financial Controls Board+1
- Preemption lawfare. Courts have struck down NYC efforts to push banks via procurement leverage (see the Responsible Banking Act case). [12] Harvard Law Forum on Governance
- Culture-war diversions. As Truthout notes, capital prefers proxy fights: police, “disorder,” or foreign policy shibboleths that sap coalition energy while budgets quietly get rewritten. [1] Truthout
Counter-measures available to a reform mayor:
- Make financial transparency a civic ritual. Weekly dashboards on cash, spreads, and debt service can deny rumor a head start and invite the public into budget reality. (Comptroller Lander already presents to the FCB annually; expand that into a citywide conversation.) [16] NYC Comptroller
- Use procurement and deposits strategically—where lawful. NYC should aggressively use its proprietary power (who we bank with, who we hire) within legal limits. But after the RBA ruling, the city must craft tools that withstand preemption—e.g., competitive deposits policy with objective, safety-and-service criteria rather than “regulatory” mandates. [12] Harvard Law Forum on Governance
- Advance public banking at the state level. The New York Public Banking Act (A6268/S1992) would let cities charter public banks to recycle local deposits into community priorities and reduce dependence on Wall Street. Movement groups are organizing hard to pass it. [15][16] New York State Senate+1
- Build “rainy-day” politics, not just reserves. Ratings agencies reward formal reserve policy; movements should, too. Codify minimum reserve levels so single-year shocks don’t topple social programs. (Current ratings explicitly cite NYC’s budget controls.) [6] NYC Comptroller
- Tie program wins to mass participation. Fare-free buses become resilient when riders are organized to defend them; tenant protections stick when tenant unions are at the table. That’s how you translate votes into durable bargaining power—what Truthout calls the power to “threaten much bigger disruptions unless the rich capitulate.” [1] Truthout
The Palestine factor—and legal tripwires
New York politics will not be insulated from global solidarity movements. Mamdani’s explicit advocacy for Palestinian rights has drawn both support and ferocious opposition. [2][4] AP News+1 Here’s one under-discussed layer: New York State’s 2016 Executive Order 157 directs state entities (and certain public authorities) to divest from, and avoid contracting with, firms that support BDS. [13] Governor Kathy Hochul Civil-liberties groups have long warned this order chills protected political speech and invites “blacklists” — a fight that could entangle municipal procurement and financial relationships. [14] American Civil Liberties Union
Even if a Mamdani administration steers clear of formal BDS policy, donor and lobby networks can weaponize this landscape to pressure budget priorities. That’s another reason public-interest financing tools (like public banking) and transparent procurement guardrails matter: they reduce the surface area for retaliatory politics while keeping the city’s money mission-aligned. [15][16] New York State Senate+1
What Greens should learn from New York—win or lose
For Greens who dream beyond city hall—to governors’ mansions and federal power—the Mamdani moment is a stress test. It will show whether a popular urban mandate can survive a non-elected veto by finance and its allies. It will also show how much movement capacity matters: tenants and transit riders; small businesses; public-sector unions; immigrant and Muslim communities; Jewish New Yorkers committed to justice; climate and housing coalitions. The question isn’t only “Is the mayor tough?” It’s whether the coalition behind the mayor is organized to defend policy against a thousand paper cuts.
That’s why the Truthout analysis should be essential reading for Greens: it frames the fight as power versus power, not charisma versus chaos. [1] Truthout The point isn’t Mamdani’s personal perfection. It’s whether a democratic city can govern itself against concentrated wealth without Albany or Wall Street pulling rank.
“The market’s veto” is real—but so is a community’s veto over austerity, if we build it.
Dearborn’s lens
From Dearborn, we recognize these dynamics. Our community knows what it means when national politics tries to marginalize local voices—particularly Arab and Muslim voices—and how solidarity work around Palestine is smeared to derail broader justice agendas. We’ve also seen how local governments can either amplify community needs or hide behind “the markets.” The stakes in New York are national, but the lessons are local: organize the base, demystify the budget, build resilient institutions, and don’t confuse one leader’s compromises with the movement’s horizon. That’s the Dearborn way.
Sources
[1] Michael Beyea Reagan, “The Biggest Threat to Mamdani’s Agenda Isn’t Hochul or Trump — It’s Wall Street”, Truthout, Oct. 18, 2025. https://truthout.org/articles/the-biggest-threat-to-mamdanis-agenda-isnt-hochul-or-trump-its-wall-street/ Truthout
[2] AP News: “Zohran Mamdani wins New York City’s Democratic mayoral primary…” (June 2025). https://apnews.com/article/c398b33fe7304287596d64582d326988 AP News
[3] Meredith Deliso et al., ABC News: “NYC mayoral candidate Zohran Mamdani…,” Oct. 28, 2025. https://abcnews.go.com/Politics/nyc-mayoral-candidate-zohran-mamdani-campaign-rhetoric-affordability/story?id=126902551 ABC News
[4] Joseph Gedeon, The Guardian: “Hakeem Jeffries endorses Zohran Mamdani…,” Oct. 24, 2025. https://www.theguardian.com/us-news/2025/oct/24/zohran-mamdani-hakeem-jeffries-endorsement The Guardian
[5] NYC Comptroller – Ratings Reports (accessed Oct. 2025): current GO ratings AA (S&P/Fitch), Aa2 (Moody’s), AA+ (KBRA). https://comptroller.nyc.gov/services/financial-matters/nyc-bonds/new-york-city-debt/ratings-reports/ NYC Comptroller
[6] Fitch Press Release: “Fitch Rates NYC $3.25B Fiscal 2026 Series D & E GO Bonds ‘AA’; Outlook Stable,” Oct. 3, 2025. https://comptroller.nyc.gov/wp-content/uploads/2025/10/Fitch-Press-Release-NYC-GO-2026DE.pdf NYC Comptroller
[7] New York State Financial Control Board – About (powers, potential reimposition of control period). https://fcb.ny.gov/about-us Financial Controls Board
[8] Joint Economic Committee (U.S. Congress), New York City’s Financial Crisis (historical report with MAC/FCB details). https://www.jec.senate.gov/reports/94th%20Congress/Other%20Reports/New%20York%20City%27s%20Financial%20Crisis%20%28715%29.pdf Joint Economic Committee
[9] Baruch College, “A Short History of New York City’s Financial Crisis” (1986) — CUNY tuition begins in 1976; layoffs and austerity. https://www.baruch.cuny.edu/mac/Office_Chron/JUN1986.pdf Baruch College –
[10] Rockefeller Institute of Government, “Forgotten Lessons from the 1970s NYC Fiscal Crisis,” Feb. 14, 2022. https://rockinst.org/blog/behind-the-fiscal-curtain-forgotten-lessons-from-the-1970s-nyc-fiscal-crisis/ Rockefeller Institute of Government
[11] Ford Presidential Library, House Banking Committee Paper (Dec. 9, 1975): notes on teachers’ pension infusion to roll debt and pay interest. https://www.fordlibrarymuseum.gov/library/document/0055/1669138.pdf fordlibrarymuseum.gov
[12] Harvard Law School Forum on Corporate Governance, “Court Strikes NYC’s ‘Responsible Banking Act’,” Aug. 26, 2015. https://corpgov.law.harvard.edu/2015/08/26/court-strikes-nycs-responsible-banking-act/ Harvard Law Forum on Governance
[13] Executive Order 157 (Cuomo): “Directing State Entities to Divest Public Funds Supporting BDS.” https://www.governor.ny.gov/sites/default/files/atoms/files/EO_157_new.pdf Governor Kathy Hochul
[14] ACLU: “Gov. Cuomo’s BDS blacklist is an affront to free expression,” June 9, 2016. https://www.aclu.org/news/free-speech/gov-cuomos-bds-blacklist-affront-free-expression American Civil Liberties Union
[15] NY State Assembly Bill A6268 (2025): New York Public Banking Act. https://www.nysenate.gov/legislation/bills/2025/A6268 New York State Senate
[16] Public Bank NYC Coalition (media release), Mar. 14, 2025. https://www.publicbanknyc.org/media-release-3-14-2025 Public Bank NYC
[17] ABC7NY: “Vote 2025: Race for NYC Mayor — live updates,” updated Oct. 30, 2025. https://abc7ny.com/live-updates/vote-2025-mamdani-cuomo-sliwa-race-nyc-mayor-sherrill-ciattarelli-fight-nj-governor-more-live-updates/18076803/ ABC7 New York
Notes for readers
- Footnote numbers in the text refer to the sources listed above.
- Quotations are limited, with emphasis on paraphrase and citation for clarity.
Disclaimer
This analysis is provided for informational and educational purposes and reflects publicly available reporting and expert commentary at the time of publication. Dearborn Blog strives for accuracy and balance; however, fast-moving events may shift facts or context after publication. Nothing here constitutes legal, financial, or investment advice. Views expressed are those of the author in Dearborn Blog’s voice—positive toward the Green Party platform, committed to Palestinian human rights, and anchored in local community values—while aiming to be fair and evidence-based.
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