Loeffler told Fox News Digital that small business owners in New York City fear socialist policies could accelerate population loss and drive even more jobs and investment to red states.<\/p>\n
NYC OFFICIAL WARNS BUSINESSES WILL FLEE ‘IN DROVES’ IF DEMOCRATIC SOCIALIST CANDIDATE WINS MAYORAL RACE<\/strong><\/a><\/p>\n She said New York City\u2019s more than 100,000 small businesses employ nearly 1 million people, making them the powerful pulse of the city’s economic heartbeat.<\/p>\n People walk on the sidewalk on Fifth Avenue on Sept. 16, 2023 in New York City. (Thomas Trutschel\/Photothek via Getty Images \/ Getty Images)<\/p>\n “New York is the capital of capitalism and small businesses,” Loeffler said on the sidelines of the United Nations General Assembly, where she addressed the economic downside of progressive politics.<\/p>\n “Small businesses are very concerned about what might be coming down the road, particularly as they hear threats of socialist policies, government takeover of industries, rising regulation, rising taxes, a minimum wage that may skyrocket to $30 an hour and cost thousands of jobs,” she said, adding that New York City businesses have already witnessed an “eroding customer base.”<\/p>\n TREASURY\u2019S BESSENT WARNS NYC: NO BAILOUT UNDER MAMDANI \u2013 \u2018DROP DEAD\u2019<\/strong><\/a><\/p>\n It\u2019s a decline she says has only accelerated over the past four years as people, businesses and capital relocate to red states.<\/p>\n Kelly Loeffler, U.S. Small Business Administrator, speaks during the 2025 Concordia Annual Summit on Sept. 24, 2025, in New York City. (Riccardo Savi\/Getty Images for Concordia Annual Summit \/ Getty Images)<\/p>\n “The fastest growing states in this country are red states, while the states that have lost the most population and business are blue states,” she said.\u00a0<\/p>\n “That\u2019s true in New York and that\u2019s why you see states like Texas, Florida<\/a> and Georgia growing \u2014 because they have a pro-business, pro-freedom agenda that lets free enterprise flourish and lets people live their American dream.”<\/p>\n MAMDANI\u2019S RISE IN NYC MIRRORS ECONOMIC FLIGHT TO THE SOUTH, STUDY SHOWS<\/strong><\/a><\/p>\n Her remarks come as the 33-year-old democratic socialist continues a strong lead in New York City\u2019s mayoral race.<\/p>\n New York City Mayoral candidate Zohran Mamdani waves during a town hall at Brooklyn College in New York City on Sept. 6, 2025. (Angela Weiss\/AFP\/Getty Images \/ Getty Images)<\/p>\n Affordability is the centerpiece of Mamdani\u2019s campaign to run the largest city in the U.S. Yet proposals like free buses, city-owned grocery stores, and rent freezes have rattled Wall Street, drawing some of his fiercest critics.<\/p>\n MAMDANI’S RENT FREEZE PLAN COULD STRAIN HOUSING COSTS IN NEW YORK, EXPERTS SAY<\/strong><\/a><\/p>\n The clash underscores a widening divide between progressive visions for the city and the financial sector that has long powered it.<\/p>\n “We’ve already had this socialist experiment of runaway spending that drove inflation and massive regulation. That stopped the ability of innovative industries like artificial intelligence<\/a> and crypto to flourish,” Loeffler said.<\/p>\n Mamdani’s campaign did not immediately respond to Fox News Digital’s request for comment.<\/p>\n An American flag hangs on the wall as traders work on the floor of the New York Stock Exchange at the opening bell on June 13, 2025, in New York City. (Angela Weiss\/AFP\/Getty Images \/ Getty Images)<\/p>\n![\"New](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/09\/nyc-recovery.jpg\")
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