Cities and Jobs and Politics

Abstract

This article describes the origins of the Urban Jobs and Enterprise Zone Act, introduced in Congress in March 1982. Proponents of the legislation argue that it is a remedy for unemployment and urban stagnation. A more critical evaluation indicates that the legislation provides scant benefits for the inner-city poor, but windfall tax advantages for large firms. Jobs that might be provided are the most menial sort and subsidies are heavily weighted in favor of plant and equipment expansion. The proposal is best understood not as a solution to the urban problem but as part of a large redistribution of wealth and income. For the problems that purportedly inspire the legislation, better solutions are available.

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