Conservative critique argues deregulation, not intervention, solves regulatory burden problems
Heritage Foundation Challenges Small Business Strategy
Conservative think tank Heritage Foundation has published a critical analysis of Mayor-elect Zohran Mamdani’s small business reform package, arguing that his proposals for addressing regulatory burden fail to address root problems facing entrepreneurs. While acknowledging that Mamdani correctly identifies the city’s punishingly slow bureaucratic systems as genuinely problematic, Heritage argues his solutions rely too heavily on government intervention rather than actual deregulation. Mamdani’s platform includes cutting small business fines in half, speeding up permitting, making online applications easier, and increasing funding for one-on-one small business support by 500 percent. The proposal also includes creation of a “Mom and Pop Czar” Office designed to advocate for small business interests. Nicole Huyer, a Heritage Foundation fellow, acknowledged the appeal of Mamdani’s message targeting the little entrepreneur. “While his message resonates and it correctly identifies that the city’s systems can be punishingly slow, his agenda does not target root concerns for businesses,” Huyer wrote.
Regulatory Burden Critique
The Heritage analysis emphasizes that small businesses face approximately 6,000 regulations imposing time, money, and resource costs. Rather than removing unnecessary and onerous rules, Mamdani proposes minimally reducing compliance expenses through the “Mom and Pop Czar” approach. Violations such as labor non-compliance, sanitation issues, or building code infractions cost owners thousands of dollars annually. “The right solution is deregulation,” Huyer argues. “Rather than removing needless and onerous regulations and ensuring compliance with essential safeguards, he has proposed more government bureaucracy.”
Permitting Process Concerns
While faster permitting procedures sound attractive, critics note that Mamdani’s plan lacks concrete detail on implementation mechanisms. New York City’s permitting process is indeed complex and slow, sometimes requiring several months and substantial resources. But Heritage contends that Mamdani’s proposal represents more likely campaign rhetoric than serious operational improvement.
Government Assistance Dependency
Mamdani’s plan to increase funding for Business Express Service Teams (BEST) by 500 percent aims to provide one-on-one support through grants, loans, and technical assistance. Heritage argues that over-reliance on government assistance may harm entrepreneurial independence by fostering governmental dependence and crowding out private sector entities offering similar services. Scaling up BEST requires hiring and training additional staff, potentially creating inefficiencies and mismanagement risks.
Conservative Alternative Vision
Heritage Foundation advocates for eliminating useless or obsolete regulations rather than maintaining them while arbitrarily reducing associated fines. “Making compliance requirements less restrictive can best be achieved by eliminating the compliance requirement altogether,” Huyer contends. “Removing the regulatory burdens that plague small business owners best fosters free market competition and economic growth.” The critique reflects broader ideological disagreement about government’s proper economic role, with conservatives favoring market solutions over regulatory reform.
Fair Assessment of Complexity
Yet even critics acknowledge that regulatory reform represents genuinely difficult policy work. The Heritage analysis does not deny that Mamdani’s commitment to small business concerns has merit. Rather, it argues that his proposed mechanisms rely too heavily on government structures and insufficient on substantive deregulation. Small business owners across New York will ultimately assess whether Mamdani’s approach meaningfully improves their circumstances or whether Heritage’s warnings about continued bureaucratic burden prove accurate. For the Heritage Foundation’s complete analysis, see their detailed commentary on Mamdani’s small business plan.
