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America's Industrial Cities: Jolted but Resilient

Many industrial cities, especially those associated with steel and automobile manufacturing, will probably suffer additional damage to their economic base as a result of foreign competition. A further decline in federal aid to cities is a strong prospect. Despite these prospects, such cities have the potential of becoming stronger than before in the opportunities and living benefits they offer. They have human and physical resources that are used far below their capacity. The author proposes recovery compacts between dependent cities on the one hand and the federal government and the relevant state governments on the other whereby in return for a commitment by a city to pursue agreed recovery goals, the federal and state governments, acting jointly, would agree to assist it to become independent of a need for external aid. The article discusses essential elements of such compacts with reference to successful precedents.