New York City democratic socialist mayoral candidate Zohran Mamdani is facing harsh criticism from business owners and local officials in the Big Apple, some of whom warn his progressive platform could drive companies and the middle class out of the city.

Councilwoman Vickie Paladino sounded the alarm during an appearance on "America Reports" Friday, claiming Mamdani’s proposals would cripple the city’s economy and send businesses packing.

"We will lose businesses in droves," Paladino argued. "You got NASDAQ, you got Wall Street. They could work anywhere. They could work in Jersey, they could work in Connecticut. They don't need to be in Lower Manhattan."

Paladino, a Republican representing parts of Queens, argued that Mamdani’s democratic socialist agenda would send businesses fleeing to states with lower costs, such as neighboring New Jersey. 

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One of Mamdani’s most controversial proposals is a plan to launch government-run grocery stores in underserved neighborhoods. The 33-year-old state assemblyman, also from Queens, says the program would aim to combat food insecurity and bring down grocery prices.

"As mayor, Zohran will create a network of city-owned grocery stores focused on keeping prices low, not making a profit," his campaign website states. 

"Without having to pay rent or property taxes, they will reduce overhead and pass on savings to shoppers."

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Supporters of Mamdani’s proposal, often younger, more progressive Democrats, have pointed to the rising cost of groceries in the city. A study by SmartAsset, a financial advisory website, found that grocery prices in the New York metropolitan area increased by 3.3% between March 2024 and March 2025.

This rise was among the highest in the nation, surpassed only by cities such as Honolulu, parts of Florida, and areas near San Diego, California.

But not everyone is convinced this type of program could work in the nation’s largest city. Gristedes Supermarkets CEO John Catsimatidis compared the plan to failed systems in communist regimes and threatened to close stores if Mamdani is elected.

"You’re going to end up like Havana," Catsimatidis told "America Reports" on Thursday. 

"I was there in Havana with Fidel Castro. The shelves were empty. He promised the world to the people. He says, ‘Get rid of Batista, and things will be great.’ Well, it was all one big lie."

Fox News Digital reached out to the Mamdani campaign for comment on both criticisms. 

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Paladino had similar concerns. She noted that New York has long been a refuge for immigrants fleeing communism and warned that Mamdani’s platform could potentially hurt the Middle Class, especially if small businesses are pushed out. 

"We lose small business, we lose it all," she said. "We're [going to] lose middle-class people."

The concerns over Mamdani’s views are something Paladino argues has been brewing in the Democratic Party for some time, starting in schools.  

"They have been training and indoctrinating," she said. "Now the chickens have come home to roost, and guess what? The Democratic Party cannot control them."

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Mamdani’s broader platform includes eliminating subway fares, offering free municipal housing and childcare, and ending all Immigration and Customs Enforcement (ICE) operations in the city. He defeated former Gov. Andrew Cuomo last month in a stunning primary victory and secured the Democratic nomination.

In November’s general election, Mamdani could face Republican Curtis Sliwa, incumbent Mayor Eric Adams, and Cuomo, who remains on the ballot as an independent.