Chapter 4: Urban Systems in Transition
This chapter tells how there are separate times in the history of urbanization. From 1945-1972 is the time of economic recovery, then the next era is between 1972-1983 which is a time period of economic crisis. Post 1983 is when there was a technological boom, and became powered by telecommunications equipment.
1945-1972
In this first stage, there was a change to advanced capitalism, as Henry Ford created the mass production system and thus Fordism was born. New methods of transportation were born, such as interstate highway systems, allowing quicker travel to faraway places.
With increased methods of travel, and the ability to get places quicker, certain cities became the hub of transpo
rtation, known as control centers. Places like Atlanta, Los Angeles and Dallas had a high proportion of corporate headquarters located there, increasing their importance. It was more convenient to have businesses centrally located in such areas, and they continued to grow and develop.
1972-1983
The United States entered a period of stagflation during the Arab-Israeli war when there was an embargo placed on oil going to the United States, quadrupling oil prices in the United States. As a result, the economy fell into a depression, productivity decreased and unemployment was on the rise.
This all resulted in a new attitude toward the economy, shifting away from the Keynesian approach and towards decentralization and deregulation of economic activity. Until 1982, the U.S. economy suffered from falling profit rates, plant closings, rising unemployment and poverty. Manufacturing was hit the hardest, and as a result, the process of deindustrialization began.
Post-1983
There have been certain technological systems that have been more influential than others:
- Production process technologies- are ways in which to make production easily separated and flexible, such as electronically controlled assembly lines, computerized sewing systems.
- Transaction technologies- which allows companies to be aware of exactly how much material is needed at any given time, and therefore they do not need to purchase excess stock.
- Circulation technologies- are the technologies that reduce the time it takes to spread information (such as e-mail, and with the latest hand-held devices, such as iPhones and Palm Pilots, people have their e-mail at their fingertips any time of day). This means that more information can be spread over a larger geographic space in a shorter amount of time.
With the shift to a more technology-based economy, there have still been not as many jobs in the manufacturing sector, yet there are more jobs in the professional and business sector. This also introduces the idea of relative locations, meaning that it is easier to spread information via computer and internet, and the central location of a company is not as important.
Globalization
With the new technologies, companies are now constructed in order to serve a larger market, on a global scale, and thus transnational corporations were born.
There is a four tiered system of hierarchy within the global system:
- World cities- ex. London, New York, Tokyo- these cities are primarily responsible for a disproportionate amount of the world’s business. They dominate their own continents, business-wise, and are also closely tied to one another. There are also secondary world cities, which are also integral parts to the flow between governments, major corporations, and other necessary business functions. World cities also have certain characteristics that distinguish them from other cities.
- A certain modicum of control over the flow of information, culture and news.
- Definite social and economic segregation- including a huge disparity between the elite (banking, insurance, accounting, etc) and the disadvantaged people
- Huge concentrations of new immigrant groups
- Prevalent class and racial conflict
- Regional control centers - Boston, Kansas City, Seattle, Dallas - these cities typically have a large number of corporations’ regional and national headquarters. They also have important medical and educational facilities.
- Specialized producer service centers- Orlando, San Jose- these are characterized by having a great need for specialized services such as banking and advertising, yet are dependent upon the previous two-tiers of the city system.
- Dependent Centers- these cities do not exercise the control that the other cities have, instead they have to rely upon the decisions made by these larger cities. There are certain kinds of cities that fit this category
- Traditional manufacturing centers (Buffalo)
- Industrial/military centers (San Diego)
- Mining/industrial centers (Charleston)
- Resort/retirement/residential (Las Vegas)
Demographic and Social Change
One of the most important changes in the United States economy was the appearance of the Baby Boom generation, and the influence that this generation had because of its sheer size. The Baby Boomers were marked by an affinity for the counterculture movement, and a rejection of the staid lifestyle that was encouraged during the 1950s. Because of their large numbers, there was a great deal of competition in the housing and job markets, increasing the market value for houses and wages stood still. Because of the fierce competition, a me-first mentality developed, creating a materialistic, narcissistic culture.
The next generation were the post-Boomers/Young Adults, which entered the housing market at a time when mortgages prices were down, making housing more affordable. Often these Post-Boomers live in the Sun Belt region, which has a fast growing market.
The elderly is also an important demographic, as they make 12.4 percent of the total population. This demographic is often (relatively) wealthy, and they often relocate to luxury spots, such as Las Vegas or Orlando.
- different generations bring about changes in the places they live and the effect that they have on the economy.
- as globalization occurred, certain cities came to the forefront of the industry, increasing their importance
