Race in America is intricately tied up with social, political and economic processes which have made cities their most recent battleground. Poor African Americans are concentrated in deteriorating inner city neighborhoods from which whites and middle class blacks have fled, taking business and financial resources with them. Public services suffer as the urban tax base falls and cities lose clout in state and federal politics. In this chapter Wilson examines policies that have exacerbated the poverty and isolation of inner city ghettos. He argues that race-based policies may ignite a conservative backlash rather than improving conditions for poor African Americans. Policies that apply to all low income people would be more politically acceptable while still helping disadvantaged African Americans who meet their need-based criteria.