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2 - Structural Changes: Regional and Urban

Published online by Cambridge University Press:  28 March 2008

By
Carol Heim
Edited by
Stanley L. Engerman  and
Robert E. Gallman
Carol Heim
Affiliation:
University of Massachusetts, Amherst
Stanley L. Engerman
Affiliation:
University of Rochester, New York
Robert E. Gallman
Affiliation:
University of North Carolina, Chapel Hill
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Summary

INTRODUCTION

In 1990, for the first time, a majority of the U.S. population lived in metropolitan areas with more than one million people. More than half of these thirty-nine areas were in the South and West (see Figure 2.1). Only five such areas (New York, Chicago, Philadelphia, Boston, and Pittsburgh) had existed in 1900. Then they held 15.5 percent of the U.S. population, and all were in the Northeast and Midwest. During the intervening decades the boundaries, internal structure, and economic roles of U.S. regions and urban areas altered dramatically.

A national economy can be thought of spatially in at least two ways: as a set of regions or as a system of cities. These are not mutually exclusive. Although often defined by industrial specialization (agricultural, extractive, or manufacturing), a region also can be defined as a nodal metropolis structuring a surrounding area. Historically, regions and cities have influenced each other in numerous ways. But in the United States and else-where their relative importance for economic growth has changed over time. The system of cities has assumed the dominant role in the twentieth century.

Growth in capitalist economies depends upon continually shifting boundaries or frontiers: spatial, technological, and social. The expectation of high financial returns on each of these frontiers, although not always realized, drives the investment that sustains aggregate growth. New territories are developed and new cities constructed. Technological innovations are conceived and embodied in equipment and organizations. Firms do not simply reallocate resources already employed, but expand and contract the social boundaries of the system of firms.

Type
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The Cambridge Economic History of the United States , pp. 93 - 190
Publisher: Cambridge University Press
Print publication year: 2000

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