Although numerous problems predated World War II, Newark was more hamstrung by a number of trends in the post-WWII era. The Federal Housing Administration redlined virtually all of Newark, preferring to back up mortgages in the white suburbs. This made it impossible for people to get mortgages for purchase or loans for improvements. Manufacturers set up in lower wage environments outside the city and received larger tax deductions for building new factories in outlying areas than for rehabilitating old factories in the city. The federal tax structure essentially subsidized such inequities.