Mises Institute Socialist Mamdani Inadvertently Pays Tribute to Capitalism
Jan 5, 2026
Zohran Mamdani's swearing-in ceremony at a forsaken subway station sparks a discussion about the history of New York's transit system. The original privately managed subway, launched in 1904, is celebrated for its engineering excellence and urban mobility enhancements. However, price controls and regulations drove it to insolvency, contradicting the myth that public transit can't profit. The podcast navigates how privatization initially led to success, while public takeover led to decline, revealing a complex legacy of capitalism within urban transit.
AI Snips
Chapters
Books
Transcript
Episode notes
Privately Built Subway As A Showcase
- The early New York subway was built and run by private companies and became a global showcase from 1904 onward.
- That privately managed system delivered strong engineering, maintenance, and public pride for decades before decline.
Profits Then Decline From Price Controls
- Private subway operators made profits in their early decades, contradicting the claim that transit can't pay its way.
- Government regulation and price controls, especially the enforced five-cent fare, later forced private operators into losses.
Private Funding Enabled Expansion
- Private financing enabled subway construction when the city neared its debt limits, making expansion feasible.
- This private participation helped workers move to healthier neighborhoods and supported urban growth.
