1. The Transforming Metropolitan Economy Matt Moorehead

2. Key Observations (P. 2) The increasing importance of services as a source of job creation. The dominant role of metropolitan economies. Highlights from the classification analysis—by economic specialization and population size—of the U.S. metropolitan system.

3. Key Observations (cont.) The wide-ranging differences in patterns of growth in employment, earnings, and income among metropolitan areas. The increased importance of non-earned income as a source of aggregate demand within metropolitan economies.

4. The Threefold Transformation Stanback attributes the change in metro areas as a result of three key factors –Transformation in employment –Transformation in earnings –Transformation in income Transfer Payments (TP) and Dividends, Interest, and Rent Payments (DIR)

5. Transformation in Income EarningsTPDIREarningsTPDIR 73.6312.5313.8566.3816.4017.22 1974 1997 *These figures are the percentages of total U.S. income*

6. Resort/Retirement EarningsTPDIREarningsTPDIR 65.8314.8119.3654.8518.6726.49 19741997 *These figures are for the resort/retirement areas with population of less than 250,000*