Socialist Failures: From Failed Grocery Stores to Credit Card Price Controls

Travis Korson argues that New York City has elected socialist Zoran Mamdani based on affordability promises, replicating a failed model of government-run grocery stores. The Soviet Union spent seven decades demonstrating the inevitable failure when the state takes over food distribution, resulting in chronic shortages and empty shelves despite well-intentioned rhetoric about fairness.

This pattern continues with recent legislation from Republican Sen. Josh Hawley (R-Mo.), joining socialist Sens. Bernie Sanders (I-Vt.) to push price control measures on credit card interest rates. Korson contends that this ignores basic supply-and-demand economics, as demonstrated by the predictable failure of similar policies like the Durbin Amendment.

When Congress imposes artificial price caps below market costs, suppliers pull back and shortages emerge. Kansas City’s taxpayer-funded grocery store project hemorrhaged millions before collapsing last year, proving central planners simply cannot outperform markets in providing what people need.

The author believes policymakers should instead focus on using free markets to expand economic opportunity for all Americans rather than recycling old socialist failures from government-run grocery stores to credit card rate caps. These policies consistently result in fewer choices and more hardship for consumers.

To read more of Korson’s reports, visit: [Frontiers of Freedom](https://www.frontiersof.org)

Opinion