New Hope for Revival of America's Central Cities

Abstract

During and after World War II and until fairly recent years, most American cities experienced rapid aging and physical decay, resulting in an exodus to the suburbs of their middle-class residents and in the attendant erosion of their tax bases, which made it impossible to cope effectively with a wide range of social problems. At present, however, there is considerable evidence of a rebirth of our central cities, the single most important factor contributing to this trend being the federal government's enouragement of their economic development. The differential investment and employment tax credits, expanded Economic Development Administration (EDA) and Urban Development Action Grant (UDAG) funding, and related proposals in our new national urban policy promulgated in 1978 are intended to help offset the job and revenue losses resulting from central cities' outmoded manufacturing facilities and transportation systems. Moreover, this new urban policy emphasizes the importance of state governance and tax policies for the well-being of cities. Most experts agree, however, that it takes at least 20 years to effect significant changes in urban development patterns, and the ultimate test of our new urban policy will be the degree of momentum it is able to achieve and sustain over time.