Government environmental policies have proven especially counterproductive. A large proportion of our cities' abandoned properties are environmentally contaminated. As a result, contamination and joblessness go unaddressed. A survey of Toledo, Ohio, businesses found that environmental worries affected 62 percent of the area's commercial and industrial real estate transactions-almost always hindering job creation and economic development. In Flint, Michigan, the former site of Thrall Oil Company also sits vacant.
Local officials say the property is excellent for manufacturing.
For decades, social engineers in Washington have tried to revitalize distressed areas like these, but the blight remains. Too often, various urban renewal and welfare programs have only made things worse by spawning dependency on government help. Environmental laws intended to force clean-up of contaminated sites have only scared away investors fearful of potentially unlimited liability, including liability for contamination the investors did not cause or even know about. Although not serious threats to public health or safety, legal rules make these properties too financially risky for investment and job creation, creating permanently abandoned blights on the urban landscape. Even investors willing to shoulder the liability are not allowed to write off the cost of cleaning up a brownfield.