City counts cost of attacks

THE horror of September 11 still haunts New York, but it is the economic fallout from the attack that now poses one of the biggest challenges to the city.

The terrorist strikes exacerbated a national recession and ravaged stock prices which were already in decline following the market boom of the 1990s.

New York was the hardest hit US city as its finances relied heavily on taxes from Wall Street firms and their staff.

The revenue shortfall was worsened by the post-September 11 slump in tourism which has left many small businesses struggling for survival.

The cost of increased security has also put a heavy burden on the city’s coffers.

New York Mayor Mike Bloomberg has been forced to introduce tax rises and a string of cuts to services to combat a multi-billion pound budget deficit, policies that caused his approval ratings to plummet.

The cash shortage is evident around the city, from an increase in potholes on the streets to piles of rubbish due to fewer collections.

A New York Times poll showed that 60% of New Yorkers thought life had become worse in the city in the past year, and only 30% said they believed it would be a better place to live in 10 to 15 years.

Many people are still struggling to find work or have had to switch careers because of the attacks.

Unemployment and the dire financial situation are expected to be major issues in next year’s presidential election, possibly overshadowing national security.

For all the problems, the number of US flags still displayed in windows and car aerials are testament to the pride felt by most Americans on how they have handled the crisis.