As Washington faces its 21st federal government shutdown since 1976, the debate once again turns to the role of government and how essential it is. The showdown affects the discretionary portions of federal expenditure, such as funding for the alphabet soup of civilian agencies.
All mandatory government expenses, such as defense, federal law enforcement, border security, Social Security, Medicare, and interest payments on the debt, will continue as usual.
But while Washington grinds to a halt, the spectacle of dysfunction only bolsters Zoran Mamdani’s claim that bold local government must step in where the federal state cannot.
Even federal workers who are furloughed will receive their back pay once this impasse is resolved. For now, most of these employees get to enjoy a free paid vacation. Some employees, who live paycheck to paycheck, will be impacted. We hope they won’t find it difficult to finance their expenses on the strength of their federal government ID.
Not surprisingly, the impact of the shutdown will have real political consequences along the Acela corridor, in New York City, where the debate in its mayoral race centers on the proper role of government. Mayor Eric Adams' announcement this week that he was withdrawing from the reelection bid next month demonstrated how far left America's largest city and the financial and media capital of the world had moved.
Adams, only the second African American mayor in the city's history with a sizable Black population, felt it necessary to withdraw rather than suffer humiliation at the voting booth. Earlier this year, he made one of his most consequential political decisions when he withdrew from the Democratic Party primary, despite operating in a ranked-choice voting system.
With former New York Governor Andrew Cuomo also running, Adams concluded that he had no chance of winning against the socialist candidate, Zoran Mamdani, who is leading in the polls.
The federal shutdown adds to this imbalance. While Mamdani has not directly tied his campaign to the gridlock in Washington, the spectacle of dysfunction underscores his broader argument that entrenched leaders cannot cope with crises, opening space for his radical alternative.
Eric Adams is no conservative, but as a career police officer, he came close to being called one in ultraliberal New York City. Adams favored deploying additional police in heavily immigrant neighborhoods like Astoria, where crime rates were substantially higher than in other parts of Metro New York.
Adams even announced that he would cooperate with the Trump administration to help Immigration and Customs Enforcement perform their federal obligations to go after violent criminals. After years of welcoming immigrants, his shift to an anti-immigrant stance and cooperation with the Trump administration quickly crippled his candidacy.
As we have noted in these pages, Mamdani is one of the most extreme left-wing leaders that America has ever produced. It is possible that he would move to the center once he wins the election. However, his repeated pronouncements on the campaign trail show that he is willing to take New York City down a path of no return.
Mamdani’s vision is to enact Vermont Senator Bernie Sanders’ ideas word for word. He has a dim view of wealth creators who fund the city's nearly $125 billion budget. He views every policy problem through a socialist lens. The classic "haves versus have-nots" dynamic drives everything he says. Unless he helps the millions of New York City residents to address income inequality (through drastic measures), Mamdani insists that the possibilities of the mayor's office are wasted.
In a utopian world where unlimited income flows into the city coffers with no strings attached, many people would likely agree with Mamdani's policies. Indeed, he has run a brilliant campaign by not talking so much about what he would do if elected. Instead, he has been talking nonstop about all the problems that afflict one of the greatest cities in the world.
Many independents are drawn to this kind of campaigning in the belief that identifying a problem is nearly 80% of the solution. Mamdani is at least honest in talking about these issues, which resonate with many voters. His remedies have never been tried out, so the theory goes, why not give him a chance?
It is here where his campaign should have collapsed a long time ago. New York City is unlike any other place in the world that has tried his policy positions.
State-run grocery stores were a dismal failure of the Soviet Union's Cold War-era experiment in distributing resources to everyone. An extraordinarily friendly sanctuary city and LGBTQ policies would invite more and more people from around the world to come into New York City, many of them illegal or as visa overstays. The city is already struggling with a housing crisis, wherein rent for a two-bedroom apartment, even if a subsidized unit becomes available, exceeds $5,500 a month.
New York City is unlike St. Louis, Kansas City, or Lincoln, Nebraska, where cheap land is available in a 360° circle. Even in Metro Los Angeles, which has land available only within a 180° arc, urban sprawl is such a massive problem that it takes commuters more than two hours each way to reach the city.
Mamdani has promised affordable housing to everyone. Where he will build new housing, how he will fund the development, how he plans to entice real estate companies to join in his ambitious plans, and how he establishes his policies to say ‘no’ at some point as the city becomes a magnet that attracts people who are coming more to "take than give" are extremely crucial questions regarding social policy.
Adages with which we grew up, such as "there is nothing like a free lunch" or "you get what you pay for," will be tested. And if there is one thing we have learned, it is that once a public benefit is offered, it is nearly impossible for future administrations to revoke or take it away.
To all the voters who are supporting him who say that socialist policies have never been tried out in the US, we remind them of the just-concluded Biden-Harris administration.
Crime went up in the inner cities because of unbridled immigration. Inflation skyrocketed due to excessive government borrowing and spending. Had the Build Back Better proposal, involving $6 trillion in spending on all of the priorities that Mamdani has, such as a greener environment and free money to everyone, been passed, America would've been in a far more serious crisis than it is today.
The shutdown reinforces that sense of dysfunction. Even without Mamdani saying it outright, the contrast between Washington’s paralysis and his promise of activist government makes his appeal stronger, pushing New Yorkers closer to a choice that could permanently alter the city’s future.
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TIPP Market Brief – October 2, 2025
Your Morning Snapshot
📊 Market Mood — Thursday, October 2, 2025
🟢 Futures Edge Up on Weak Jobs Data
Stocks inched higher as soft private payrolls bolstered hopes for more Fed rate cuts this year.
🟡 Shutdown Uncertainty Persists
The ongoing government shutdown clouded sentiment, threatening delays to key economic data releases.
🟣 OpenAI Crowned Most Valuable Startup
A $6.6B secondary sale lifted OpenAI’s valuation to $500B, surpassing SpaceX.
🟠 Gold Holds Near Records
Safe-haven demand kept gold close to all-time highs as traders braced for prolonged political gridlock.
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📅 Key Events Today
🟨 Thursday, October 2
08:30 – Initial Jobless Claims
Weekly report on new filings for unemployment benefits.
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