ABSTRACT
The politics of federal deficit reduction currently shape the discussion about what can be done for cities and their metropolitan areas. Because little new money can be allocated, policy-makers look to enterprise, or “empowerment,” zones, which require no direct public expenditure, to attract business to low-income areas. They are also seeking ways to encourage banks to lend money for development in the inner-city. But there are many other significant policies that require relatively little new funding. There are also ways to make investment in cities and the environment pay for itself in the long run, and, if policies can be seen to pay for themselves, or are evidently necessary for the public welfare, there ought to be a way to finance them.
