Focusing on Ann Arbor and Jackson, Michigan, this field study explored the effects of certain educational investments on a community's economic growth. Data were obtained from a literature review and personal interviews. Current levels of educational and economic development were assessed according to eight categories and corresponding guidelines. Investments in formal education, continuing (CE) and adult education, job training, and community education were analyzed within an experimental framework. A high level of educational and economic development (including community education) was found in Ann Arbor. Although investments in job training and CE were not at the prescribed level, deficiencies were not serious. Several significant correlations were also found between Ann Arbor's educational and economic indicators. Jackson appeared to have a stagnant economy, excessive investment in formal education, not enough investment in CE and job training, and large but uncoordinated community education investments. Several recommendations were made. Among other things, Jackson's educational spending must become projective, not responsive, to stimulate economic growth; and both communities should invest more heavily in CE and job training. (Author/LY)