By analyzing industrial policy, this booklet reveals a long-term conceptual problem that has impeded progress toward fuller employment for blacks. The report introduces industrial policy; gives an overview of leading industrial policy proposals; outlines the employment problems of black Americans; assesses the various analyses of these problems; evaluates the efficacy of industrial policy proposals for minorities; and explores various policy options for improving the situation of black workers. Industrial polilcy fails to address black employment problems in three areas: (1) the nature of firms where blacks work; (2) the role of schools and training in the labor market; and (3) shifts in the composition and number of available jobs. Retraining programs, for example, concentrate on large primary firms and the short-term unemployed, having little value when the real problem is too few jobs. Growth alone has not solved black employment problems in the past, nor will it do so in the future. Rather than offer an alternative, the report encourages industrial policy advocates and minority leaders to engage in discussions which might lead to some new ideas for change. The report advocates a continuation of affirmative action programs, public employment, and income redistribution policies--despite the associated political problems. (ETS)