Technological changes have produced a postindustrial economy which has both facilitated and encouraged the flight of capital and well-to-do people from the older industrial cities. Left in their wake are increasing levels of unemployment, poverty, and crime. Service needs have Increased accordingly, but at a time when these cities have not only smaller tax bases but also less electoral clout with which to acquire additional financial assistance at the state and federal levels. In a nearly futile attempt to reestablish a healthy degree of private investment in their cities, municipal governments let service levels decline and focus on spurring capital accumulation.

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