Inflation,Economic Policy,and the Inner City

Abstract

This article describes the greater impact of inflation among the poor and minorities in American inner cities than among other population groups. Surveys show, however, that minorities are even more concerned over unemployment and racial discrimination than over inflation. There are indications that, especially today, crime and potential group disorder are affected by or influence inflation, unemployment, and discrimination in the inner city. With these interrelated factors in mind, present federal economic policy is reviewed, critiqued, and interpreted as basically consistent with Keynesian economic theory. Modifications of and alternatives to present policy are offered that fit both inner-city needs and the concerns of the rest of American society. These policies include targeted private sector neighborhood development and self-help, private sector productivity increases through workplace democracy, private—public sector codetermination of investment, private—public sector job guarantees, and public anti-inflation policy carefully targeted at the basic necessities of energy, food, housing, and health care—which have a disproportionate effect on inflation in the inner city, as well as the overall economy. Coalitions are suggested that could politically implement such policies.