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Box 22, Folder 2, Document 44

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Draft 5/10/67 CONFIDENTIAL


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. III


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 bank.

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. III F .

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. III G.

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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