Cato Institute
Policy Analysis
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Page 9
whole would be better off if such neighborhoods were fixed
up to look more like middle-class neighborhoods.  Moreover,
political obstacles emerge for local elected officials when
neighborhoods decline.  Mayors can hardly take pride in the
fact that their metropolitan areas are generally thriving
when some city neighborhoods are losing population and
property values are declining.  Moreover, abandonment and
declining home prices mean a loss in property tax revenue
for city governments.
Secretary Weaver crystalized the view that public
intervention was necessary to stop the downward trend.
"Residents and city administrations find themselves in a
spiral," wrote Weaver.  "The cities need to provide required
services and the residents to pay the increased taxes.
There is a need for more housing, particularly to serve the
lower end of the income scale, more and better quality
schools, more recreation facilities, more hospitals and
sewage and water facilities."22
Implicitly, Weaver was arguing that specific neighbor-
hoods had to be saved to save cities generally.  In other
words, HUD wanted both to help the poor by rebuilding apart-
ments and to help the cities generally by salvaging the
areas in which the poor lived.  That contrasted with the
urban renewal movement of the 1950s, which sought to rebuild
central city commercial and residential areas to attract the
middle class.  Thus government, the new logic of the 1960s
would dictate, must prevent the abandonment of structures
and restore dilapidated structures to their previous condi-
tion while simultaneously earmarking them as residences for
the poor.
There is a good case to be made, however, especially in
light of the history of the past 30 years, that an entirely
different sort of urban policy approach would lend itself to
greater economic vigor in cities.  It is akin to what Sen.
Daniel Moynihan (D-N.Y.), frustrated with the meager results
of social programs, termed "benign neglect."  It is a case
for allowing neighborhoods to find their real level of value
so as to set the stage for their long-term, sustainable
renewal.  All cities experience long-term real estate demand
cycles.  Cities can be thought of as urban ecosystems, in
which various districts and residential neighborhoods fill a
variety of niches and play a variety of roles.  Jane Jacobs,
author of The Death and Life of Great American Cities, who
is generally viewed as our era's most insightful observer of