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There was no magic: By removing known rapist from the streets for jaywalking (literally), long-rap-sheet-burglars for loud mufflers/ littering or lesser, he turned a sizable % of the bad guys into pre-trial detainees when they couldn't make the sizeable bails prosecutors requested.
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That would work to get the criminals off the street in the short term, but jaywalking or littering wasn't going to get them back into prison and off the streets for the long haul. Unless that practice of "rabid enforcement" and pre-trial detention is continued forever, any resulting reduction in crime rates will be temporary. But the violent crime rate in NYC has been dropping pretty steadily since 1990, four years before Guiliani even took office.