LECTURE 4: THE INDUSTRIAL CITY
The growth of modern industry from the late 18th century onward led to massive urbanization and the rise of new great cities, first in Europe and then in other regions, as new opportunities brought huge numbers of migrants from rural communities into urban areas. In the United States from 1860 to 1910, the invention of railroads reduced transportation costs, and large manufacturing centers began to emerge, thus allowing migration from rural to city areas. However, cities during those periods of time were deadly places to live in, due to health problems resulting from contaminated water and air, and communicable diseases. In the Great Depression of the 1930s cities were hard hit by unemployment, especially those with a base in heavy industry. In the U.S. urbanization rate increased forty to eighty percent during 1900-1990. Today the world's population is slightly over half urban,[7] with millions still streaming annually into the growing cities of Asia, Africa and Latin America. There has also been a shift to suburbs, perhaps to avoid crime and traffic, which are two costs of living in an urban area.
Modern cities are known for creating their own microclimates. This is due to the large clustering of heat absorbent surfaces that heat up in sunlight and that channel rainwater into underground ducts.
Waste and sewage are two major problems for cities, as is air pollution coming from internal combustion engines. The impact of cities on places elsewhere, be it hinterlands or places far away, is considered in the notion of city footprinting (ecological footprint). Other negative external effects include health consequences such as communicable diseases, crime, and high traffic and commuting times. Cities cause more interaction with more people than rural areas, thus a higher probability to contracting contagious diseases. However, many inventions such as inoculations, vaccines, and water filtration systems have also lowered health concerns. Crime is also a concern in the cities. Studies have shown that crime rates in cities are higher and the chance of punishment after getting caught is lower. In cases such as burglary, the higher concentration of people in cities create more items of higher value worth the risk of crime. The high concentration of people also makes using automobiles inconvienint and pedestrin traffic is more prominent in metropolitan areas than a rural or suburban one.
Cities also generate positive external effects. The close physical proximity facilitates knowledge spillovers, helping people and firms exchange information and generate new ideas. A thicker labor market allows for better skill matching between firms and individuals. Another positive externality of cities comes from the diverse social opportunities created when people of different backgrounds are brought together. Larger cities typically offer a wider variety of social interests and activities, letting people of all backgrounds find something they can be involved in.
READING FOR THE NEXT LECTURE
