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I think the city can be part of the process. Street rhymes, immigrant songs from ethnic groups, even there's an argument for Rap and Doo Wop singing when it leaves the pop media and market. I think that there are performers such as Uncle Dave Macon who were commercial entertainers. But the music they sang was not necessarilly for sale. Popular songs are for sale. That's why they are popular songs. The tautology here is that they sell.
Sure there are great tunes written by a particular person. There are many great popular and art songs. But I go with the "communal theory" regarding folk songs.
My view is that folk music has always been ignored by the larger gemeral public which is represented by the media.
Don't know about competition. I've never been to a competitive folk song festival. How can you judge something like that? A fiddle contest, well maybe. Having been a judge for many banjo contests I know what a hopeless task it is.
Does competition make for good performances of folk music? I haven't a clue.
Rick, as the French say "Viva la difference!"
Frank Hamilton