Guiliani Fables - He Continues to ExaggerateSubmitted by ILUVRON2008 on Sat, 01/26/2008 - 14:40
Giuliani: I'm the only one who's actually turned around a government economy. I mean, the reality is when I became mayor of New York the economy of New York was in very, very bad shape -- tremendous deficits, ten-and-a-half percent unemployment, 300,000 jobs gone. We turned that around, cut unemployment by more than half, brought in 450,000 new jobs, and we cut taxes by 17 percent.
Let's start with unemployment. In January 1994 when Giuliani took office, the rate was 9.9 percent, not 10.5, a figure that was last seen the previous April. And he didn't cut unemployment in half. By January 2002, with Giuliani just having left office, it was 7.6 percent. Even if we give him the benefit of the doubt and go back to the month prior to Sept. 11, 2001, the rate was still 6.2 percent. At no point during his term did it drop to 5.0, the rate that would lend truth to his "more than half" claim. As for deficits, we've said this before: When he took office, Giuliani faced a $2.3 billion deficit for the next fiscal year. His last budget, issued in May 2001, projected a nearly $2.8 billion deficit in fiscal 2003, the first budget year the incoming mayor would face. Because of 9/11, the gap grew to about $5 billion.
We've dealt with the former mayor's 17 percent tax cut claim before, too. It's actually the tax burden that declined that much, not the tax rate, as one might think from listening to his words.