Podcast Summary: "Why Matt Yglesias Thinks Mamdani Won't Change New York"

Everybody's Business – Bloomberg & iHeartPodcasts | Nov 7, 2025
Host(s): Max Chafkin & Stacey Vanek Smith
Featured Guests: Matt Yglesias (Slow Boring, Bloomberg Opinion), Ellen Cushing (The Atlantic)

Main Theme & Purpose

This episode examines the election of Zoran Mamdani, a democratic socialist, as New York City's mayor—a historic moment accompanied by anxieties within the business and billionaire communities. The hosts and guest Matt Yglesias analyze whether Mamdani’s win will instigate transformative change in NYC or follow familiar political cycles where radical rhetoric collides with governmental realities. The episode also covers the changing landscape of food delivery in America, and closes with a discussion on tech's latest fundraising gambits, specifically OpenAI's hints at seeking public support.

Key Discussion Points & Insights

1. The Job Market and Corporate Layoffs

[02:32–06:22]

• Recent surge in layoffs (Amazon, UPS) after a long period of labor market stasis.
• Confusion over labor market signals—low hiring but also low unemployment.
• Theories: AI-driven layoffs vs. pandemic over-hiring corrections.
• Musk’s record-breaking pay package at Tesla, tying into Wall Street’s AI obsession.

2. New York's Socialist Mayor: Real Disruption or History Repeating?

[11:35–20:02]

Mamdani Elected – Why the Business Elite Is Nervous

• Mamdani’s election as NYC’s (soon-to-be-sworn-in) first democratic socialist mayor is causing "catastrophizing" among the city’s business and billionaire class.
• “So many tweet threads by Bill Ackman. Hard to count.” – Max Chafkin [12:12]
• Major donors backed Cuomo, a centrist, who lost.
• Reference to previous cycles of progressive mayors (de Blasio), where alarm was high but change to city structures ultimately modest.
• Matt Yglesias: “If you go back in time 12 years to when Bill de Blasio was elected, you had this exact same discourse... And it was so unremarkable in retrospect that people almost forget it happened.” [13:10]

Mamdani’s Rhetoric vs. Mayoral Reality

• Mamdani’s fiery oratory targets the billionaire class, but practical powers of the mayor are constrained (spending, appointments, services).
• Notable Quote:
  "As has so often occurred, the billionaire class has sought to convince those making $30 an hour that their enemies are those earning $20 an hour... We refuse to let them dictate the rules of the game anymore."
  – Zoran Mamdani (victory speech) [15:24]
• Yglesias argues that city government is about mundane tasks (schools, sanitation, negotiating budgets) and transformative change is difficult:
  “You can make things a little bit better or a little bit worse around the margin... if he does a halfway responsible job, the people who are really enthusiastic about him are going to end up being a little disappointed by this sort of grubby, boring reality of being a mayor.” [19:23]

Billionaire Responses and Political Backtracking

• Business elites, after heavy investment, offer olive branches—Bill Ackman's unusually brief congratulation is cited as “full capitulation.” [16:16]
• Ongoing speculation: Will billionaires really leave NYC? Is this a decisive moment for business political alliances?

3. Broader Political Takeaways

[20:02–24:43]

• National electoral outcomes: unexpected Democratic wins in New Jersey and Virginia.
• Takeaways: Political polling remains unpredictable; voters disappointed by lack of cost-of-living relief.
• Yglesias: “[Trump]...he’s doing a lot of stuff with AI that is of incredible interest to the stock market. But, like, regular people aren't seeing the kind of relief that they hoped for. So Democrats can ride that backlash… pretty far.” [20:30]
• Implications for businesses: growing appetite for leftist policies—especially around housing—may not be "good news" for business, but practical coalitions (e.g. housing supply reforms) are forming.

4. Navigating Business & Politics Post-Mamdani

[24:43–27:42]

• How deeply will the business class realign, given both current and future electoral realities?
• Yglesias: “Corporate America should reconsider that kind of attitude... The Trump bubble is popping now, too. Politics keeps happening with backlash, alternation of power, overreach, limits.” [24:45]
• Practical advice: Mamdani and the business elite both stand to benefit from pragmatic cooperation.

5. Restaurants, Food Delivery, and Silicon Valley's Impact

[27:47–44:12]

Guest: Ellen Cushing (The Atlantic)

Delivery Takes Over American Eating

• "Three out of every four restaurant orders was not eaten in a restaurant." – Ellen Cushing [28:39]
• 30% of full-service restaurant orders are now off-premises.
• Pandemic solidified delivery as the default, aligning with Silicon Valley's subsidized expansion of the model.
• Once consumers experience “eating a wagyu steak in bed,” habits rarely revert. [33:34]

Business Model Problems and Downstream Effects

• "Delivery doesn't make sense. Delivery is really expensive... basically nobody else is [making money]." – Ellen Cushing [35:21]
• Gig economy introduced vast VC subsidies, collapsing as consolidation gives two big players control (Grubhub, DoorDash).
• Impact on restaurants: menu items shift toward foods that travel well (the “bowl” phenomenon), dining rooms reconfigured for drivers. [37:29]
• Restaurants feel compelled to offer delivery or risk losing business, even as it siphons profits.

Cultural & Social Losses

• Max Chafkin: “Something profound, like culturally profound, is lost when you take away restaurants... it's sad for us.” [41:19]
• Cushing compares current trends to shrinking movie theaters—restaurants survive, but no longer as community spaces.
• Is reversal possible? Cushing is skeptical—frequency among young people is extremely high (13% under 45 use delivery daily). [43:20]

6. Underrated Segment: AI, Chips & OpenAI’s Fundraising Gambit

[47:39–52:36]

Key Story

• The OpenAI CFO suggests, at a Wall Street Journal event, that the company (flush with investment and buzz) may need governments or banks to help finance next-generation AI chips.
• “The hottest company in the world... The CFO got up and basically suggested that they need the government to create a backstop, effectively an openAI bailout.” – Max Chafkin [49:13]
• Political backlash ensues (Ron DeSantis et al.); OpenAI later backpedals.
• Hosts note this resembles “privatize the gains, socialize the losses,” common since the financial crisis.

Broader Implication

• If the AI bubble bursts, it could have systemic ramifications, but for now, OpenAI's move is seen as corporate opportunism.
• Cushing: “They're just leveraging. It's like any job interview. They're anchoring expectations.” [51:03]

Notable Quotes & Memorable Moments

• Matt Yglesias [13:10]:
  “It was so unremarkable in retrospect that people almost forget it happened and are now acting like this is the first time we’ve ever seen a progressive guy get elected mayor of a very heavily Democratic city.”
• Zoran Mamdani [15:24]:
  “As has so often occurred, the billionaire class has sought to convince those making $30 an hour that their enemies are those earning $20 an hour... We refuse to let them dictate the rules of the game anymore.”
• Matt Yglesias [19:23]:
  “You can maybe change housing in the city... If he does a halfway responsible job, the people who are really enthusiastic about him are going to end up being a little disappointed by this sort of grubby, boring reality of being a mayor.”
• Ellen Cushing [28:39]:
  “In 2024, three out of every four restaurant orders was not eaten in a restaurant.”
• Max Chafkin [41:19]:
  "Something profound, like culturally profound, is lost when you take away restaurants... it’s sad for us."
• Ellen Cushing [35:21]:
  “Delivery doesn’t make sense. Delivery is really expensive. You’re introducing a middleman... and that costs money.”
• Max Chafkin [49:13]:
  “The hottest company in the world... The CFO got up and basically suggested that they need the government to create a backstop, effectively an openAI bailout.”

Timestamps for Key Segments

• Layoffs & Job Market: 02:32–06:22
• NYC Mayoral Election & Business Reactions: 11:35–20:02
• Analysis of Mamdani’s Prospects: 12:54–20:02
• Ellen Cushing on Food Delivery: 27:47–44:12
• Underrated Segment (OpenAI & AI Funding): 47:39–52:36

Overall Tone & Style

• Conversational, lightly irreverent, deeply reported—hosts blend analysis, expert commentary, and humor.
• Matt Yglesias brings trademark wonkish realism, deflating revolutionary hopes.
• Ellen Cushing details the quirks and downsides of new urban food habits with anthropological curiosity.
• The show’s style is accessible, engaging, and briskly paced, making wonky topics approachable and relevant for all listeners.

For listeners: This episode is an incisive exploration of political upheaval in New York City, the persistent limits to progressive governance, how tech is reshaping old habits (for better or worse), and the underlying absurdities of both Wall Street and Silicon Valley’s search for government validation. Even if you missed the show, this breakdown offers both the highlights and the deeper economic, social, and political context.