Enterprise Zones Are No Solution For Our Blighted Areas.

This article focuses on the use of enterprise zones to target assistance to blighted areas in the U.S. Even in the best of times, poverty and high unemployment remain the norm for blighted areas. The underlying rationale for enterprise zones is that of reduction of taxes, regulation and other government imposed barriers. Taxes play a secondary role in business investment decisions. Many believe an infusion of small businesses is needed to vitalize blighted areas. The administration of U.S. President George Bush argues that a reduction in government financial and regulatory barriers, as proposed in enterprise zones, will encourage small businesses and entrepreneurs to start new business in such zones.