Can social democracy save capitalism — again? But don’t count on the Left
January 1, 2026
Zohran Mamdani’s inauguration this week as New York City mayor is a moment of reckoning for those who care about preserving the American way of life. As a matter of policy, Mamdani mostly represents a continuation of the lifestyle and identity Leftism of recent decades, rather than a turn to traditional socialism. Yet it’s a telling indicator that his pseudo-socialist message has resonated so deeply with many young New Yorkers, tracking a broader shift toward urban radicalism.
It is a challenge, and an opportunity, for reformers in government and business: unless policies address the fundamental economic crises shaping this socialist surge, our market system, particularly in cities, will weaken in the face of collectivist urges. Capitalism can only be saved by addressing issues like housing affordability, lack of upward mobility, and a dearth of good jobs. In doing so, the forgotten midcentury model known as social democracy offers a promising blueprint.
