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Urban Policies, Social Goals and Producer Incentives: Are Market Mechanisms and Policy Objectives Compatible?

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Market-Based Public Policy

Part of the book series: Policy Studies Organization Series ((PSOS))

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Abstract

The decade of the 1970s was highlighted by the now familiar story of economic decline in the traditional industrial centres of the northeast. Coupled with rising welfare demands on falling revenue bases, this decline led to repeated threats of bankruptcy and/or default on the part of some of America’s oldest population centres. These cities, conventional wisdom held, were suffering as a result of a combination of (1) their dependence on sunset industries and (2) their inability to provide for an atmosphere of economic transformation. Increasingly, social problems were seen as the result of the overactivity of governments (on the local, state and, especially, federal levels) trying to manage and control more and more of society’s economic and social life. By becoming too invasive, government policies (and by implication government bureaucracies) had created a situation which sent incorrect, or at least misleading, signals to economic agents in our society.

The author would like to thank Heidi Gottfried and Richard Hula for useful comments on earlier drafts.

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Authors
  1. David Fasenfest
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Editor information

Editors and Affiliations

  1. Department of Family and Community, University of Maryland, USA

    Richard C. Hula (Associate Professor) (Associate Professor)

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© 1988 Policy Studies Organization

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Fasenfest, D. (1988). Urban Policies, Social Goals and Producer Incentives: Are Market Mechanisms and Policy Objectives Compatible?. In: Hula, R.C. (eds) Market-Based Public Policy. Policy Studies Organization Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-08891-1_10

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