The New York Post is reporting on an alleged leak of a list of demands the N.Y.C. chapter of the Democratic Socialists of America, Zohran Mamdani’s primrary backer, sent to him. It calls for a hard-line, starkly anti-Israel – and in our view antisemitic – municipal policy.
These demands include ending all city contracts with companies doing business with Israel, divesting city pension funds from Israeli banks, and the withdrawal of funds from banks lending money to the Jewish state and even operating city-run grocery stores free of Israeli products.
The list also calls for such things as investigating real estate agents “hosting illegal sales of stolen lands in the West Bank,” and arresting Prime Minister Benjamin Netanyahu and active IDF soldiers for “war crimes” if they come to New York.
But implementing this approach will not be smooth sailing. For one thing, there would likely be resulting significant job losses. Israeli-founded companies directly created over 27,000 jobs in N.Y.C. in 2024, contributing over 50,000 indirect jobs. So, carrying through on a boycott could well lead to a mass exodus of these firms, resulting in thousands of New Yorkers losing their jobs.
For another, in 2024, Israeli-founded companies generated $12.4 billion in added value to the city’s economy and nearly $18 billion in total gross economic output. Divestment would eliminate this substantial contribution.
For still another, the city’s public pension funds are legally required to be managed with a view towards what is in the best financial interests of their beneficiaries – i.e., city workers and retirees. Divesting from a specific, otherwise indicated investment, like Israeli bonds, for ideological reasons, could violate this fiduciary duty, potentially leading to lawsuits and financial instability for the more than 750,000 New Yorkers relying on these funds.
Finally, requiring an end to all city contracts with companies doing business with Israel and to institute other BDS (Boycott, Divestment Sanction) policies would likely make the city’s investment climate highly uncertain. This could deter other domestic and international businesses and developers from investing in New York, fearing future ideologically motivated investment decisions at the expense of fiscally prudent ones.
As we suggested in this space last week, confidence in N.Y.C. financial policies is key to its being able to attract investors and secure the funds necessary to finance its day-to-day operations pending its receipt of anticipated revenue. Considerations other than profitability have no place here and push the city in the wrong direction.