A report released by New York City Comptroller Elizabeth Holtzman says President Bill Clinton's deficit reduction package could add $5 billion to the city's economy over the next five years.
"By stimulating growth in the national economy, over the next five years the pluses of the deficit reduction program for New York City in the program outweigh the minuses." Holtzman said in a statement. "This is not to minimize the sacrifices of some New Yorkers, such as restaurant owners and some social security recipients."
The report says some benefits will flow to the city because the program is designed to boost investment and exports. In addition to its airports and harbor, the city is also host to many international corporations. The city's finance, insurance, law, shipping, and other business service companies will benefit from increased exports.
The report also notes that by reducing the federal deficit, the program should keep inflation and interest rates low, which should encourage investment. The city's finance industry will raise the money for increased investment.
The estimated cumulative net growth in New York City's gross product, which was $253 billion in 1992, is $5 billion by the end of 1997.