Economics and a Mamdani model, Big Apple style | The Hindu Editorial 08 Nov 2025 | By Rupesh Suman скачать в хорошем качестве

Economics and a Mamdani model, Big Apple style | The Hindu Editorial 08 Nov 2025 | By Rupesh Suman

The article discusses how Zohran Mamdani, the newly elected Mayor of New York City (effective 2026), represents a fresh wave of welfare-focused politics, similar to trends seen globally — from Lula in Brazil to Keir Starmer in the UK, and welfare-driven Chief Ministers in India. Mamdani’s promises — such as free buses, rent freezes, and universal childcare — bring up a critical question: 👉 How can sustainable welfare coexist with a market-driven economy? The author explains that welfarism delivers quick, visible benefits like education, housing, and transport. But if not designed carefully, it can lead to quality decline, inefficiency, and black markets. Traditional economics warns against this — yet acknowledges that supporting the poorest improves social welfare, inspired by philosopher John Rawls’s idea of judging society by its least advantaged members. He contrasts two extremes: The “Pareto trap” — focusing on efficiency but excluding the poor. The “Rawls trap” — over-subsidising and collapsing supply incentives. Instead of choosing one, the article suggests building a “thermostat” between the two — a dynamic balance that becomes Rawlsian (supportive) during crises and Pareto-efficient as capacity grows. The “Mamdani Model” should therefore combine fiscal honesty with careful microeconomics, ensuring welfare schemes are well-funded, transparent, and outcome-oriented. Examples include: Singapore’s Bus Contracting Model, France’s Solidarité Transport, Brazil’s Bolsa Família, and Kenya’s Inua Jamii. It also highlights the role of mission-driven firms (like Aravind Eye Care in India) that blend business efficiency with social goals. Finally, the author argues that durable welfare depends on: Honest budgeting and transparent costing, Partnering with private and social enterprises, Treating citizens as customers with rights, and Balancing compassion with competence. The article concludes that the ideal Mamdani Model is one where inclusion is achieved through design — not just free giveaways — ensuring that markets and justice strengthen each other rather than clash. Discussed: Pareto Optimality Rawl's Theory of Justice UPSC GS-3