When we last reported on the recent developments in TICP no. 65 with the Democratic Party courting the sewer socialist left wing, we knew this marriage could only be the continuation of the domination of the capitalist class, not a genuine challenge to them, nor a functional tactic of struggle to improve living conditions. We knew that ambitious wealth taxes and massive expansions to social programs were not to come. We knew that finance and debt creates austere limits unpassable without serious social revolt that forces the hand of the bourgeoisie, working to abolish the monetary system in its entirety. And most importantly, we knew that this political movement only serves to pacify resistance by channelling genuine worker frustration into paltry acts of voting.

Half a year has passed since leading democratic socialist Zohran Mamdani has taken office in New York City on a “tax the rich” platform, promising a general elevation of living standards through simple policy changes. If only someone had thought of this before! Life would be just peachy so long as everybody paid their fair share, right? Such are the illusions of the ahistorical, radical and arm flailing petty-bourgeoisie. Enough historical precedent has shown that no matter the pie in the sky promises offered by the moral politicians of the local level, the dictates of capital always take supreme importance. Of the most recent accomplishments celebrated by Mamdani is a somewhat surprising one: balancing the budget. This of course runs contrary to the stereotype of Keynes-esque social democracy that tends to increase spending and run on temporary budget deficits.

However, behind the façade of victory, therein lies the same death knell tendencies of overripe capitalism that exposes the house of cards Mr. Mamdani has inherited and continued to build. One only needs to look at the balance sheet to see what dark magic was performed. The balanced budget – which has not officially been passed yet – comes primarily through the infamous method of debt restructuring, meaning a renegotiation of the terms of obligations for borrowed money. This practice does not eliminate the necessity of paying interest on debt, but stealthily diffuses and delays the inevitable financial crisis that will come when debt obligations can no longer be fulfilled. In this instance, several of the payments owed to the city pension fund, which delivers the wages kept from workers during their term of employment, are being further pushed back. Ultimately, this provides immediate fiscal relief, but increases the overall necessary interest payments, thus inflating the proverbial debt bubble. The financial crisis facing not only New York City, but the whole capitalist world is not solved, but made much worse. All of this comes on top of eroding reserve funds that have maintained the same nominal value, but have depreciated in real value due to inflation. These emergency funds are already being cut into as well, creating immense fiscal pressure. Eventually, a cataclysmic failure in the chain of worldwide debt payments will come and necessitate extreme cuts to welfare spending and immense misery. This, though, will ignite the fire of the proletariat who must sweep aside those who try and stop them. We can expect the usual cries for civility and a return to the rule of law from the bourgeois left, right and center. History, though, will condemn these farcical pretenders of Cato.

“But Mamdani is making people’s lives better and getting things done!” cry the opportunists. Is that so? To name the promises already formally abandoned: significant property tax raises on the wealthy, rent voucher program expansion and free buses. In fact, the whole “tax the rich” plan has been completely mutilated. Mandani’s paltry increase in property tax that did manage to pass can only generate a theoretical maximum of 0.4% of the budget and can be easily avoided. The ever persistent inequality of wealth thus remains unchallenged, despite the fanfare. Even Mamdani’s famous advocacy for rent control is in question as his team refuses to rule out an increase for rent-controlled apartments. Further cuts and sacrifices will likely expose themselves come the budget deadline.

Mr. Mamdani isn’t distinguished here; he is merely following in the long established pattern of debt management alongside his Democratic compatriots. The goal is to methodically decrease the workers' living standards slowly à la the boiling frog in order to maintain some modicum of stability in capitalist society. Former Mayor Eric Adams chose to falsify budget expenses and directly cut funding for services. Mamdani gets his budgetary wins primarily through the state of New York’s $7.6 billion of aid (at the same time making their debt problem worse) while maintaining inadequate social services under the guise of compromise. Both are ostensibly obeying the same objective limits and function for the same goal: ensure social peace for capital accumulation.

This phenomenon stretches across the continent with another infamous mayor, this time labelled as a progressive, Brandon Johnson of Chicago. The story is the same: failed “tax the rich” legislation and insurmountable debt. So much debt in fact that the credit rating for the city of Chicago has been severely downgraded, reflecting a growing realization among financial oligarchs that the city is unable to make good on its payments. The 2026 budget for Chicago that recently passed was Mayor Johnson’s last chance at introducing his financial agenda and he yet again failed to fulfill his promises. He can scream and shout about how he was sabotaged by city aldermen, but the truth of the matter is that the bourgeoisie is not going to use its own state instruments against itself. The problem is systemic and insuperable. Ultimately, Mr. Johnson chose to accept the budget in order to prevent a government shutdown and immediate fiscal crisis. Here we see once again the interests of the heroic politician align decisively with the bourgeoisie, for in the end there was no other option when playing in their field.

The debt restructuring contained within the Chicago 2026 budget takes on a different form than New York’s as Mr. Johnson and co. plan to directly borrow an additional $1.8 billion (a 14.5% increase to the total outstanding general obligation) all while cutting public school jobs. How ironic considering Mr. Johnson’s immense funding from the teachers' business union. Workers who are fooled into hitching their well-being on bourgeois politicians are left betrayed once again with nothing to fight back with but empty wallets. But wait! Extra funding is set to come in by…legalizing video poker and slot machines in every bar or restaurant with a liquor license. How civil. To save face, Mr. Johnson will take up the righteous climate fight and sue Big Oil, frantically seeking money from dubious sources like this because the wealthy are fundamentally protected. By the time this gets anywhere, Mr. Johnson will be out of office, drinking champagne and toasting to all the progress he made. Well, sir, we thank you for working in spite of yourself towards the great capitalist crisis! And for not claiming to be a socialist!

What we see in Chicago is inevitably New York City’s future: credit downgrades and looming financial crisis in which the proletariat will always bear the heaviest burden. No amount of austerity, fiscal responsibility or “sound policy” can stop the chaotic tendencies of capitalism towards inevitable crises driven essentially in the field of production by falling profit rates and supply glut. These left wing mayors have integrated unions into their political machines only to give workers scraps, eventually taking them away when capital demands it, forever damning them as opportunist scoundrels. Unions are thus left as weak appendages tied into the interests of finance with no serious ability to fight back. No political movement, no matter how strong, nor wad of cash can keep a politician in check to push them into accomplishing the agenda of – mind you – their own party. And what a movement, too! Promoting any defense of democracy or electoralist tactic delivers the workers straight into the hands of the bourgeoisie. And this is exactly their purpose. The attacks on living standards will only become more acute as capitalism progresses further into crisis. Then, the workers must take up the task not of engaging with the state, but of smashing it. Not working with the left or right, but abandoning both in favor of connecting with its sole international communist party. The active defense of the proletariat will be conducted with the revival of genuine class unions, unafraid to strike and break legal limits. Only this will demolish the objective limits imposed upon society by finance capital and monetary accounting. Communism will bring with it rational production in which there will be no money and certainly no predatory borrowing between private entities. Welfare availability will be determined solely by the amount of labor-power and physical resources on hand according to an economic plan – not by cost, profit and hideous men in dark suits.