Source: Fortune
Summary
New York City Mayor Zohran Mamdani, a democratic socialist, released a limited run of 1,500 NYC-themed World Cup jerseys at a price of $50. The jerseys sold out quickly, with many reselling for higher prices online. This event is seen as a test of Mamdani’s “affordability” agenda, which has been criticized by some as being too focused on price controls rather than increasing supply. The episode has sparked a debate within the left about the best way to address affordability, with some arguing that supply-side progressivism is a more effective approach.
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The strategy enters a familiar phase.
Mamdani’s $50 World Cup jersey is a textbook example of price-ceiling theory, where a price is fixed below the level at which quantity demanded equals quantity supplied, resulting in a shortage. The jersey drop has been criticized by some as a failure to deliver on affordability, with many reselling for higher prices online. The episode has sparked a debate within the left about the best way to address affordability, with some arguing that supply-side progressivism is a more effective approach. The tension between democratic socialism and supply-side progressivism is likely to continue, with some viewing the former as too focused on price controls and the latter as too market-friendly.
When you fix one price, the market finds another way to clear.
Author: Evan Null
