New York City Mayor Zohran Mamdani’s taxpayer-funded grocery store proposal is reigniting debate over whether government-run businesses can compete over the long term without relying on public subsidies.
Barstool Sports founder Dave Portnoy joined FOX Business’ Stuart Varney on “Varney & Co.” to weigh in on Mamdani’s proposal, which has sparked debate over whether taxpayer-funded grocery stores could reduce food costs for consumers while remaining financially sustainable.
Portnoy said he was initially confused by reports about how shoppers would access the stores, noting that earlier discussions appeared to suggest some type of membership card would be required.
“This is crazy to let… anybody go,” Portnoy said.
While critical of the proposal, Portnoy predicted the stores could appear successful during their early months because of significant public funding.
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“I think this is going to be very successful, this grocery store, in the short term,” he said. “If you’re gonna put… some astronomical amount of money into this, I think it’s gonna sorta be a mirage.”
Portnoy argued that heavy taxpayer subsidies could temporarily mask the true economics of operating a grocery business.
“I think taxpayers will make this work and he’s gonna look how great communism, socialism is,” Portnoy said, adding that the program should not be judged on its first several months.
Instead, he said the real test would come years later, when the operation would have to sustain itself.
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“Talk to me in two years, talk to me three years when you’re running an actual business and have to maintain it,” Portnoy said. “That’s when it’s gonna be hard.”
Because of that, Portnoy characterized the proposal as “kind of a publicity stunt,” arguing that its early performance would not necessarily reflect its long-term viability.
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