SOCIOECONOMIC FORCES CONTINUE TO PERPETUATE GHETTOS, DESPITE THE LEGAL EQUALITY GAINED BY NEGROES. THESE GHETTOS, IN WHICH OVER 10 MILLION MINORITY GROUP AMERICANS LIVE, EXACT AN ENORMOUS ECONOMIC PRICE IN NEEDED SERVICES, IN INCOME LOST BECAUSE OF LOW PRODUCTIVITY, AND IN PROPERTY LOST DURING PROTEST RIOTS. A PROGRAM TO END GHETTOS MUST START WITH A COMPREHENSIVE PLAN TO ELIMINATE SLUM HOUSING THROUGH NEW BUILDING, RELOCATION, AND REHABILITATION. CAPITAL INVESTMENT WOULD BE REQUIRED TO IMPROVE HEALTH CONDITIONS, EDUCATION, AND WATER AND TRANSIT FACILITIES. THESE NEW CAPITAL INVESTMENTS OF $50 BILLION PER YEAR OVER A 5- TO 10-YEAR PERIOD NOT ONLY WOULD UPGRADE GHETTO LIVING CONDITIONS BUT WOULD IN TURN GENERATE ABOUT SIX MILLION NEW JOBS. IN THE ESSENTIAL ELIMINATION OF GHETTOS AND THE CONCOMITANT RELIEF OF THE RACIAL PROBLEMS OF BIG CITIES, THE CITIES SHOULD RETAIN THEIR TAX REVENUES TO FINANCE THEIR OWN REHABILITATION. SUCH A SCHEME WOULD INVOLVE A PHASED 5-YEAR PERIOD OF DECREMENT IN FEDERAL TAX DISBURSING POWER AND OF INCREMENT IN LOCAL COMMUNITY TAXING POWERS. EACH CITY OR METROPOLITAN AREA WOULD THEN BE RESPONSIBLE TO ITS OWN COMMUNITY FOR DEVELOPING PLANS TO ELIMINATE RACIAL GHETTOS AND UPGRADE PHYSICAL, ECONOMIC, AND SOCIAL CONDITIONS. THE APPENDIX TO THIS PAPER CONTAINS A 10-YEAR PLAN FOR HOUSING REHABILITATION IN NEW YORK CITY. THIS ARTICLE IS PUBLISHED IN PHRA, VOLUME 2, ISSUE 2, P.23-36, 1967, AND IS AVAILABLE FROM THE UNIVERSITY OF MICHIGAN, P.O. BOX 1567, ANN ARBOR, MICHIGAN 48106, FOR $6.00 LOOSELEAF, $7.50 BOUND. (NH)