New York & beyond

Politics turns sharply right or left when centrists ignore the social contract of tech-led entrepreneurship model

The NYC mayoral result shouldn’t be seen through the lens of a Trump vs Mamdani bout. Yes, a young, foreign-born, Muslim democratic socialist will now lead the capital of capitalism, defying opposition from Trump and other billionaires.

But is it because of who he is, or what he publicly stands for? Mamdani the man, or the idea of Mamdani in the context of a moment in history? Clearly the latter.

Just as America, overall, veered sharply right last year to find solutions to its problems, NYC has now swung left. And both outcomes reflect the growing disenchantment with the centre.

Which is unfortunate because centrism – founded on the principles of individual rights, equal opportunity, liberal democracy and cultural pluralism – has shaped the world since WWII. And while it has flaws in practice, it has generally served well.

Trade, migration, economic growth, cultural mingling, all advance when the mood isn’t polarised, when communities and countries aren’t constantly bad-mouthed and painted as the cause of our troubles. In theory, centrism is meant to carry people along to a better place. That’s its social contract.

But the US vote on Nov 5 last year, and NYC’s vote on Nov 4 this year, show the people consider this contract broken. That’s because they find themselves worse off than they were before. There’s the cost of living crisis – a quarter of New Yorkers can’t afford food and rent.

The city’s poverty rate was double the national average in 2023, and grew by 7 percentage points in the next two years. Meanwhile, the rich keep getting richer.

The number of billionaires goes on rising. When voters get the feeling the system isn’t working for them, they choose the ‘outsider’ promising free childcare, free buses and rent control – all very un-American things.

But the mood that’s gripped American voters is also palpable in other democracies. The space for polarisation and populism has been growing in Europe and India.

Everywhere, the complaint is the same – people’s simple needs aren’t being met. The housing market, especially, is broken everywhere, including India.

So, xenophobia and promises of state action can be seductive.

That’s bad news for not only centrists but also the technology-led entrepreneurship model they have enabled, which has brought about record growth over the past few decades.

Centrist leaders must introspect and course-correct before the pendulum swings too far to the right or the left.

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