Critical Thinking Why do cities in the United States have to be concerned about economic development? –Jobs –Tax base –Quality of Life

Urban Economic Development The City as Growth Machine

Spatial Inequality Although the United States is a wealthy country, not all places within the US are equally wealthy Some places, especially some cities in the Northeast and Midwest, become “islands of poverty in a sea of disparity”

Why? Deindustrialization –Manufacturing jobs leaving for other locations US South Overseas Flight of the middle class –Suburbanization –Cities left with poor

Also… Federalism –US does not have a central economic development policy –States/localities left to their own devices US government does have impact, though –Trade policy –Defense spending

Thus Cities have to take responsibility for attracting investment Cities can’t create wealth, they have to attract it

Growth v. Development Growth –Numeric/quantitative –Who cares as long as it’s more! Development –Qualitative –Concerned with distribution of wealth

City as Growth Machine Harvey Molotch (1976) –City elites concerned with growth over development –Other needs are sacrificed to growth Growth good for elites, but not necessarily for everyone –Land values rise –Newcomers displace natives

Growth Coalition Landowners “Statesmen” –Newspapers –Politicians Local businesses

Development Slow growth –Limits on rate of growth Smart growth –Targeted sectors Sustainability –Quality of life

Challenges Actively attracting new business puts places in competition with each other –Each city tries to outdo the others –Benefits can be lost to “oversubsidization”