Like an insatiable vortex, these forces are thought to suck farm kids from homesteads, draw small firms into industry clusters and generate vibrant economies that pull still more people and resources, and feed even greater growth. Concentrated markets, economies of scale, sharing of knowledge, access to product variety and cultural amenities have all been suggested as the magnets that draw people toward cities. In the United States, for instance, 80 percent of the population lives in metropolitan centers that account for just 20 percent of the nation's land area, and they earn nearly 90 percent of the nation's income.Ĭlearly, cities also exhibit forces of attraction that act with unyielding gravitational power, pulling homes and businesses together. "The theory of production contains nothing to hold a city together."īut of course, most people do live in or near cities, and most economic activity takes place in them. "If we postulate only the usual list of economic forces, cities should fly apart," wrote University of Chicago economist Robert Lucas in 1988. A business or family seeking a low-cost location will find it in the countryside, not the city's core. Powerful forces-soaring land prices, intense competition, traffic congestion, overcrowding, pollution-should push people and firms away from urban centers. ![]() ![]() ![]() From an economic standpoint, cities are an enigma.
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