File #10343: ""



Draft 5/10/67
Urban Youth:
Education and Employment:
. Further statement on educational and employment proble·ms of
the ghetto.
But also pointing up the general problems of youth
in urban and suburban society, with the prospect of increasing
restiveness and under-employment not entirely related to race
and poverty.
Need to integrate construction trades.
The Urtan Calculus in National Economic Policy
Elaboration of relevant trends:
the Baumol thesis re the
escalating costs of a service economy and the increasing
reliance on the public market:
the employment and urban design
implications of moving from manufacturing to services; the
importance of adding an urban competence to the Council of
Economic Advisers, Treasury, Internal Revenue, Jt. Congres -·
sional Committee, etc.
The use of economic leverages (e.g.
attainted titles) to accomplish urban purposes.
The question
of elevating HUD or part of it t o a level where it participates in economic policy decisions.
II~ O.
Urban Financial Flows
The erratic flow of resources into housing and other critical
urban functions.
The liklihood of revenue sharing and block
grants, and the importance of tying these developments into
a strategy for rationalizing and extending state and local
revenue sources.
The need for increasing consumer income
and entrepreneural incentives in the ghetto, linking these
with reforms of the welfare and tax systems.
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Administrativ~ Barriers:
The problem of administering 440 separate feder-a-1--programs
affecting urban communities, and the hopeful prospect of
consolidating and simplifying federal grants.
policies of critical agencies, including FHA.
Possible re-
commendation of neighborhood development corporation~, with
share of capital advanced from national community development
An emerging role for the States,; and reconsideration of
metropolitan planning requirements both to reduce administrative congestion and to encourage dispersal of ghetto populations.
Discussion of use of incentives, including "bounty"
device for making ghetto residents economically attractive to
local governments.
Manpower f or Urban Af fairs
Estimate of critical shortages, and mention of impr obability
of goi ng t o s cale (or even carrying out present s cale) wi thout
mas sive e ntr y o f new personne l.
Consideration of Frank
Riesman's approach through new careers f or t he poor .
tance of s t eering new service complexes (me dical, educational,
etc.) to ghetto areas and/ or residents.
Possible use of
Negro and other minor ity s e r vicement, as rec r uits to public
and community service after their hitch has ended .
Need for
federa l ai d f or pre-ser vice and i n-service training.
Toward Continuous Problem-Solving
Ezra's treatise on ne ed for critical p ath and staging in
development p f public programs; also for built-in capacity for
innovation. ' Importance of sustained financing for experi-
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mental . programs, and for evaluation going- beyond what is
provided for Model Cities, etc.
III H• . (as indicat~d in Table of Contents)
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