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Though it may have been coincidental, Giuliani's first term helped usher in a dramatic upswing in New York's prosperity. A New York Times article described 1995 as "the best year in recent memory for New York City." Even the pope came to town and called New York "the capital of the world." The city's reputation flourished, with remarkable decreases in crime statistics and a revitalized economy that helped spur the tourism industry to some of its best years ever. Such successes helped the mayor withstand a bitter fight over rent control in 1997 as well as continued concern over serious overcrowding in the public school system and cutbacks in health and welfare programs. Giuliani won re-election in 1997 in a landslide.
The early years of his second term were characterized by the continued growth of the city's economy, and more civic improvements, such as the "cleaning up" of previously crime-ridden neighborhoods like Times Square, the renovation of Grand Central Station and the building of new hotels and office buildings. All these developments greatly boosted tourism and thus the city's coffers, but they also raised protests that the mayor would do anything to attract national chains to the city, often at the expense of local business and local workers.
Several high-profile incidents, such as the Abner Louima torture case involving shocking allegations of police brutality, led to charges of disregard for minority rights. With reports on racial profiling somewhat backing this up, Giuliani's popularity, once amazingly high in this heavily Democratic city, dwindled significantly - though it was soon to be resuscitated in a big way.
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