U.S. Treasury Secretary Scott Bessent is raising red flags over what he calls a growing shift toward socialism among young Americans, particularly in urban centers like New York City. In a conversation with Breitbart News, Bessent singled out Zohran Mamdani, the Democratic nominee for New York City mayor, as emblematic of a broader ideological shift driven by disillusionment with the current system.
“Why are we on the verge of Caracas on the Hudson in New York? Why is this guy getting traction?” Bessent asked. “Because young people are losing faith in the system.”
Mamdani, currently a New York State Assemblyman, has attracted attention for his plan to launch city-run grocery stores, claiming that redirecting $140 million in subsidies from private grocery chains would fund the initiative. However, fact-checks have shown that only about $30 million in relevant tax breaks were issued over the last 12 years—far below Mamdani’s estimate. Still, his campaign maintains the rest of the funding would come from taxing the wealthy.
Bessent warned that the appeal of these policies is a symptom of economic alienation and argued that greater private ownership and economic participation is the antidote—not government expansion.
To counter this trend, Bessent pointed to President Trump’s “One Big Beautiful Bill”, which includes a new initiative called Trump Accounts. Under the program, every American newborn receives a $1,000 seed investment, with the option for families and others to contribute up to $5,000 annually.
“We’re making people part of the system,” Bessent said. “This is how you fight socialism—by giving working Americans a stake in capitalism.”
He emphasized the educational value of the program, saying it promotes financial literacy, teaches principles like compound interest and long-term investing, and builds economic independence from an early age.
Private companies are already signing on. Charter Communications, for example, has committed to matching the government’s $1,000 contribution for each child of its employees, effectively doubling the investment and deepening private-sector involvement.
Bessent even suggested the program could reshape the future of retirement planning, calling it “a back door for privatizing Social Security.”
“People who are part of the system do not want to bring down the system,” he said. “Trump Accounts are how we bring them in.”
