Elon Musk warns Mamdani policies and ‘low’ universal income would trigger ‘catastrophic decline’ in US living standards

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Tesla CEO Elon Musk isn’t known for mincing words and his comments on New York City’s incoming mayor, Zohran Mamdani, were no exception.

“Mamdani is a charismatic swindler,” Musk claimed in a recent appearance on the “Joe Rogan Experience” podcast (1). “I mean, you gotta hand it to him — he can light up a stage, but he has just been a swindler his entire life.”

Musk predicted that Mamdani was “likely to win” the New York mayoral race — and he was right. A few days later, the 34-year-old democratic socialist defeated former Governor Andrew Cuomo, becoming the first Muslim and first South Asian to serve as New York City’s mayor.

But Musk is far from optimistic about Mamdani’s agenda.

“If Mamdani’s policies are put into place, especially at scale, it would be a catastrophic decline in living standards — not just for the rich, but for everyone, as has been the case with every socialist experiment,” Musk warned.

Western Economists have noted that highly centralized socialist systems — as seen historically in the Soviet Union and other centrally-planned economies — often led to stagnating or declining living standards, chronic shortages and inefficiencies (2).

One of Mamdani’s proposals is to create a network of city-owned grocery stores, designed to keep prices low rather than turn a profit (3). The stores would buy and sell at wholesale prices, be exempt from rent and property taxes and pass savings on to shoppers.

Musk dismissed the idea outright, highlighting what he sees as inherent government inefficiency.

“The government is the DMV at scale. Do you want the DMV running your supermarket?” He asked. “Was your last experience at the DMV amazing? And if it wasn’t, you probably don’t want the government doing things.”

While Mamdani identifies as a democratic socialist, Musk framed his critique in stark terms, likening potential policies to communism:

“The problem with communism is its universal low income,” he said. “I mean the thing about communism is it was all breadlines and bad shoes. Do you want ugly shoes and breadlines? Because that’s what communism gets you.”

Musk isn’t the only billionaire voicing concern. Ken Griffin, founder and CEO of hedge fund Citadel, said he is praying for New Yorkers:

“For the people of New York, I pray that the policies Mamdani uses to govern and lead New York are different than the talking points he used to win the mayoral race,” Griffin said (4). ”The people of New York deserve better.”

That said, not all wealthy figures are worried. Alex Soros, son of George Soros and chair of the $25 billion Open Society Foundations, posted a photo on X standing beside Mamdani, writing: “So proud to be a New Yorker! The American dream continues! Congrats, Mayor @ZohranKMamdani” (5).

If Musk’s warnings have you wondering what the future might hold, you’re not alone. While political shifts inevitably bring uncertainty, there are strategies you can use to protect yourself, hedge against potential economic changes and stay ahead of the curve.

Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)

When uncertainty looms, many investors turn to gold — and for good reason.

Long viewed as the ultimate safe haven, gold isn’t tied to any single country, currency or economy. It can’t be printed out of thin air like fiat money and in times of economic turmoil, inflation, or political instability, investors tend to pile in — driving up its value.

Many prominent investors have emphasized gold’s importance in a resilient portfolio.

Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, told CNBC earlier this year that “people don’t have, typically, an adequate amount of gold in their portfolio,” adding that “when bad times come, gold is a very effective diversifier.”

Jeffrey Gundlach, founder of DoubleLine Capital and widely known as the “Bond King,” echoed that sentiment. He recently said that a 25% portfolio allocation to gold “is not excessive,” calling the metal “an insurance policy” that’s likely to remain “in a winning mode” amid ongoing dollar weakness.

Over the past 12 months, gold prices have surged by more than 45%.

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.

To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.

While Musk warned about a future of “universal low income,” one way investors can take control is by creating their own income streams — and real estate remains one of the most proven ways to do it.

When you own rental property and tenants pay rent, you earn a steady monthly cash flow. It’s also a popular hedge against inflation, as property values and rental income tend to rise alongside the cost of living.

That said, investing in real estate isn’t without its challenges. Mamdani himself has vowed to crack down on “bad landlords” in New York City — a reminder that property ownership can come with its share of headaches as well as financial rewards.

Managing a property involves finding and screening tenants, collecting rent and handling maintenance and repair requests (out of your own pocket) — and that’s assuming you can save enough for a downpayment and get a mortgage to buy the property in the first place.

The good news? These days, you don’t need to buy a property outright to reap the benefits of real estate investing. Crowdfunding platforms like Mogul offer an easier way to get exposure to this income-generating asset class.

Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

Another time-tested way to earn recurring income is through dividend-paying stocks. Dividends are regular payments companies make to shareholders out of their profits, typically distributed quarterly.

By investing in dividend-paying companies, you can generate a passive stream of income without selling your shares. It’s a strategy that rewards patience — and one that many legendary investors have embraced. As John D. Rockefeller, one of the richest Americans in history, once put it: “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.”

While stock prices can rise and fall, companies with a strong track record of paying — and growing — dividends offer investors a steady cash flow. Over time, those increases can compound into a powerful income stream.

If you’re interested in exploring dividend stocks, getting started has never been easier.

With investing platforms like Robinhood, you can buy and sell stocks, ETFs and their options commission-free, track your portfolio in real time and get 24/7 access to customer service.

For those starting small, the app also lets you buy fractional shares for as little as $1, making it easy to build a diversified portfolio without breaking the bank.

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@joerogan (1); Oxford Academic (2); Zohran For New York City (3); @Bloomberg-News (4); @AlexanderSoros (5)

This article originally appeared on Moneywise.com under the title: Elon Musk warns Mamdani policies and ‘low’ universal income would trigger ‘catastrophic decline’ in US living standards

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.