The Reagan Urban Policy: Efficient National Economic Growth and Public Sector Minimizaton

Abstract

The Reagan urban policy is premised on a definition of efficient national economic growth which mandates public sector minimization. Such a policy is hostile to local economic revitalizalion and to attaching “social strings” to ensure that program benefits reach disadvantaged residents. Hence, such local economic development programs as EDA and UDA G have been attacked by the Reagan Administration. The CDBG program has been revised to allow states and localities further discretion to divert program funds from community development to economic development activities. Even the administration's enterprise zone plan does not attempt to contradict market forces in determining investment decisions. Rather, relief is given to business on business' terms with little assurance that the benefits of development will go to zone residents; and, eligibility is so broad as to allow zone designation in pockets of distress in otherwise economically healthy jurisdictions of the nation.