That may be the most likely scenario. But, considering the way that positive trends reinforced one another in the past few years, it is at least possible that negative trends could reinforce one another now, moreover, if the international situation is an exacerbating factor, not an offsetting one. Thus, we must be prepared for the likelihood that the in the more immediate future, the tide may not be rising as it did over the past 8 years, even for the possibility of some considerable period of difficulty. That makes our mission more difficult, but also, it seems to me, more important. In any case, a strong economy is very important for future progress, but it is not sufficient.
Private investment is also critical.
And today, many businesses are looking at involvement in inner cities and rural communities, not because it is charity, but because it makes good business sense as a source of new workers and new markets. And, of course, government, at all levels, must play a major role in providing resources and services, encouraging local leadership, and providing incentives for private sector involvement. The Low Income Housing Tax Credit, the Earned Income Tax Credit, and Community Reinvestment Act are three examples of critically important federal incentives for economic renewal of America's distressed communities that have had great impact. The New Markets Tax Credit has the potential to build upon the success of these federal tools. And, we should encourage state and local governments to tailor specific incentives for individual cities and rural areas, and effective examples exist in many of the cities where LISC works.