Starting in the 1980's, Federal executive branch policy has used the "trickle-down" approach, giving special tax breaks and other benefits to those with power, wealth, and upward mobility while cutting back on domestic public investment and services. These policies have resulted in growing inequalities, racial tension, and new terms such as "empowerment" that have obscured reality. Moreover, expensive prison construction has increased despite the lack of research evidence of its effectiveness or cost-effectiveness in addressing crime and drug abuse. However, prevention programs such as Head Start are more effective and cheaper than prison construction. Similar comprehensive programs can also be used for at-risk adolescents. Several successful programs are already operating. To expand the effort, the country needs a new, national nonprofit corporation for youth investment and management, with complementary Federal policy supporting school reform, employment training and placement for high-risk youth, and drug abuse treatment and prevention. Federal funding of $10 billion should be provided through reductions in military spending, reductions in foreign aid, and new personal income taxes of the richest 1 percent of the population. Figures and 62 references