Howard A. Chernick

Economic experts examine the City's economic recovery since 9/11. They provide authoritative assessments showing that New York's dynamic, flexible economy has absorbed the hardships inflicted by the attacks. Among the findings are that the value of New York-based companies did not fall relative to other firms, and that the decline in earnings and employment for low-income New York workers in 2002 was due more to the recession than to the effects of 9/11. Still, troubles remain: the attack cost the city about $3 billion in the first two years alone, a sum that the City must make up through large tax increases, spending cuts, and substantial additional borrowing, which will inevitably be a burden on future budgets.