The Rise of Urban America Public Policy Urban Affairs (PPUA) G6201 The 21st Century City: Urban Opportunities and Challenges in a Global Context Presentation of: Mary Huff Stevenson (UMass Boston) Russ Williams (Wheaton College) Urban America in the 19th Century Mary Russ Economic and Biological Push Factors Affecting Migration from Farms to Cities 1874-76 Grasshopper plagues destroy crops in Western U. S. Late 1870s and 1880s Wheat, corn and cotton prices fall; many small farmers lose their farms. 1886-87 Blizzards in Great Plains harm cattle ranches 1887-97 Drought in Great Plains states devastates farms 1890s Depression in the U.S.; cotton prices fall from 8.6 cents per pound in 1890 to 6.98 cents in 1899 1894-95 Double-freeze winters destroy Florida citrus crops 1900-1910 Cotton prices rebound rising from 9.1 cents in 1900 to 13.5 cents in 1910. But boll weevil infestation spreads east from Texas to Louisiana and Mississippi. 1904 Stem rust epidemic destroys wheat in wheat-growing states 1910-1920 Cotton prices fall in first half of decade, reaching a low of 7.4 cents in 1914, but then rise from 11.2 cents in 1915 to 35.3 cents in 1919. But, boll weevil plague spreads across Alabama, Georgia, South Carolina and Florida 1920-1930 Overproduction of cotton leads to an agricultural depression, creating more poverty in the south. Boll weevil problem persists through 1925. Cotton prices vary from year to year from a low of 15.9 cents in 1920 to a high of 28.7 cents in 1923 and end the decade at 16.8 cents. Blacks migrate away from areas of heaviest depression to cities in North and South. Many white farm owners lose land and are forced into farm tenantry or migration. 1920-1930 Number of Tractors in use in nine Southern states increases from 25,203 to 89,016, reducing owners’ need for farm laborers 1930-1940 Cotton prices fall drastically; beginning at 9.5 cents in 1930, falling to 5.7 cents in 1931, rising only as high as 12.4 cents, and ending the decade at 9.1 cents. Use of tractors spreads east from Texas and Oklahoma, doubling in number from 89,016 to 171,431. Increased tractor use continues to reduce owners’ need for farm laborers. 1932-36 Dust-bowl conditions devastate farms in Great Plains states 1933-39 U.S. government intervenes in cotton markets by introducing subsidies to farm owners if they restrict acreage. Resulting decrease in acreage lessens demand for labor, displacing some farmworkers. Acreage harvested falls from 42,444 in 1930 to 23,805 in 1939. Russ Economic Pull Factors Affecting Migration To Cities 1890-1910 Textile manufacturing, introduced into the South in 1880s expands, drawing workers to Southern cities. By 1910, half of all U. S. textile manufacturing is being done in the South. 1900-1910 Cities in North and South grow rapidly. 1914-18 Expansion of manufacturing during WWI attracts whites and Blacks to cities in North and South. 1920s Displacement due to introduction of machinery is negligible. 1930-1940 Number of Black farmers decreases by 23 percent; from 749,000 to 574,000 (a decrease of 175,000). Number of white farmers decreases by 50,000 (less than 4 percent). Reverse migration by whites from cities is substantial, as some whites leave cities and take on subsistence farming to weather the Great Depression. (The number of white farm owners increased by 74,000. (12 percent) 1940s War industries (steel, refineries, textiles) spur city development Mary Immigration and Emigration by Decade: 1901-90 (Numbers in thousands) Period Immigrants to the U.S. Emigrants from the U.S. Net Immigration Ratio: Emigration/ Immigration 1931-40 528 649 -121 1.23 1921-30 4,107 1,685 2,422 0.41 1911-20 5,736 2,157 3,579 0.38 1901-10 8,795 3,008 5,787 0.34 Source: 1992 Statistical Yearbook, Table 1; Warren and Kraly, The Elusive Exodus: Emigration from the United States, Population Reference Bureau, 1985. Emigration 1981-90, Department of Commerce, Bureau of the Census. Mary U.S. Immigration 1821-1940 10 8.8 9 8 in Millions 7 5.7 6 5.2 5 4.1 3.7 4 2.6 3 2.8 2.3 1.7 2 0.6 1 0.5 0.1 0 1821-30 1831-40 1841-50 1851-60 1861-70 1871-80 1881-90 1891-00 1901-10 1911-20 1921-30 1931-40 Mary Foreign Born Americans (includes all places over 2,500) Year Urban Population Percent of Foreign-Born Population Living in Urban Areas 1890 5,679,135 61.4% 1900 6,859,078 66.3% 1910 9,745,697 72.1% 1920 10,500,942 75.4% 1930 11,250,815 79.2% 1940 9,276,707 80.0% Estimated Migration of Black Americans from the South Year Net Migration from South Migration Regional Destinations Northeast States North Central States Western States 1880-1890 70,000 46,000 24,000 N.A. 1890-1900 168,000 105,000 63,000 N.A. 1900-1910 170,000 95,000 56,000 20,000 1910-1920 454,000 182,000 244,000 28,000 1920-1930 749,000 349,000 364,000 36,000 1930-1940 347,000 171,000 128,000 49,000 1940-1950 1,599,000 463,000 618,000 339,000 1950-1960 1,473,000 496,000 541,000 293,000 1960-1970 1,380,000 612,000 382,000 301,000 Mary Mary Mary Mary U.S. Urban Population 1790-2000 Percent of Total U.S. Population 100% 79.8% 80.3% P e rc e n t 80% 73.6% 73.7% 69.9% 64.0% 60% 56.1% 56.5% 51.2% 45.6% 39.6% 40% 35.1% 28.2% 25.7% 19.8% 20% 15.4% 5.1% 0% 1790 6.1% 7.3% 7.2% 8.8% 10.8% 1810 1830 1850 1870 1890 1910 1930 1800 1820 1840 1860 1880 1900 1920 1940 Source: U.S. Census Bureau, "Selected Historical DecennialCensus, Population and Housing Counts"; Marc J. Perry & Paul J. Mackun, "Population Change & Distribution: 1990-2000," U.S. Census Bureau, April 2001. Note: 1950-2000 reflect new MSA Urban Definition 1950 1970 1960 1990 1980 2000 Russ Effect of External Economies and External Diseconomies on Short Run Average Costs Costs SRAC3 SRAC1 SRAC2 Output Russ Why were cities such magnets for population? • Cities are efficient places for production • Agglomeration Economies (e.g Auto Mile, Hollywood, Wall St.) • Knowledge Spillovers • Modern Equivalent: Clusters (Michael Porter) Russ Costs Figure 3.3 A Typical Long Run Average Cost Curve SRAC6 SRAC1 SRAC2 Scale Economies Increasing Returns to Scale SRAC5 SRAC3 SRAC4 Constant Returns to Scale LRAC Scale Disconomies Decreasing Returns to Scale Output Russ Scale Economies Large Manufacturing Facilities Services that require a critical population mass (e.g Department Stores, Museums) Major League Sports Public Transportation Russ Transportation Costs for a Resource-Oriented Firm (also called a materials-oriented firm) A Resource Site Market Russ Transportation Costs for a Market-Oriented Firm B Resource Site Market The Weber Location Polygon for Two Resource Sites and a Single Market C Steel Production -Taconite from Duluth -Coal from West Virginia -Limestone from Michigan Russ Mary Table 4.1 Year Percent of Metropolitan Population Living in Central Cities Percent in Central Cities 1910 64.6 1920 66.0 1930 64.6 1940 62.7 -----------------------------------------------------------------------------------1950 58.6 1960 51.4 -----------------------------------------------------------------------------------2000 37.4 Growth of Suburbs -Forces of Centralization up to 1920 (Centripetal Forces) -Forces of Decentralization after 1920 (Centrifugal Forces) Mary Central City Population - San Francisco 900,000 777,000 775,357 800,000 740,316 723,959 715,674 678,974 700,000 634,394 634,536 600,000 506,676 500,000 416,912 400,000 342,782 300,000 200,000 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Mary Central City Population - Detroit 2,000,000 1,849,568 1,800,000 1,623,452 1,568,662 1,600,000 1,400,000 1,670,144 1,511,482 1,203,339 1,200,000 993,078 1,000,000 1,027,974 951,000 800,000 600,000 465,766 400,000 285,704 200,000 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Mary Central City Population - Atlanta 600,000 487,455 496,973 500,000 425,022 394,017 416,000 400,000 302,288 331,314 270,366 300,000 200,616 200,000 100,000 154,839 89,872 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Mary HOW DOES LAND GET ITS VALUE? The Game of Monopoly Russ The Bid Rent Curve and the effect of a change in product price or a change in transportation costs Panel B Panel A $500 Panel C Rent Rent A Russ Rent $600 C $500 A $500 A $300 B 20 50 Miles from center 20 B D B 50 60 50 Miles from center Miles from center E 100 Russ Bid Rent Curves for two different uses of land and the resulting land distribution Rent Panel B Panel A $800 C $500 Wheat A 30 Tomatoes B D 30 40 50 X vegetables grains Miles from center 50 Russ The Residential Paradox Rent C A D Low Incom e High Incom e B Distance from center Family and Neighborhood Income Profile, 100 Largest Metro Areas, 1970-2000 (Percentage Shares) Family Income Type 1970 1980 1990 2000 Very-Low Income 17.2 19.7 20.1 20.6 Low Income 18.5 17.5 17.7 17.8 Moderate Income 14.8 12.7 12.0 11.4 High-Moderate Income 13.2 12.0 10.9 10.1 High Income 12.6 14.0 13.1 12.1 Very-High Income 23.6 24.1 26.3 28.1 28.0 24.7 22.9 21.5 Very-Low Income 3.5 7.5 9.1 8.2 Low Income 20.8 21.2 21.3 24.0 Moderate Income 31.7 26.3 24.2 22.5 High-Moderate Income 26.6 23.6 20.2 18.4 High Income 12.6 14.5 15.4 15.1 Very-High Income 4.9 6.8 9.7 11.8 58.2 49.9 44.4 Middle Income Neighborhood Type Middle Income 40.9 Russ Barry Imports as % of GDP Truman Eisenhower Kennedy Johnson Nixon Ford Carter Reagan Bush Clinton Bush W. 16% P e rc e n t 14% 12% 10% 8% 1929 Import/GDP Ratio 6% 4% 2% 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 Russ Location Analysis - High Transport Costs 700 600 Total Cost 500 400 A Transportation Cost 300 200 Labor Cost 100 Site Cost 0 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 Miles from Central City The Location Decision under Conditions of High Site Costs and Rising Transportation Costs Russ 600 500 Total Cost 400 B 300 Transportation Cost 200 Labor Cost 100 Site Cost 0 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 Miles from Central City Russ The Location Decision under Conditions of Zero Transportation Costs and Steeply Falling Labor Costs 400 350 300 Total Cost 250 200 150 C Site Cost 100 Labor Cost 50 Transportation Cost Miles from Center City 97 93 89 85 81 77 73 69 65 61 57 53 49 45 41 37 33 29 25 21 17 13 9 5 1 0 Lo ui s fa lo $40,000 Bo Sa st on lt La ke Sa C ity n Fr an ci sc Lo o s An ge le s At la nt a Po rtl an d N ew Yo rk Ph oe ni x Tu cs on Ta co m Ja a ck so nv ille R al ei gh Au st in St . Bu f e go ke au ilw M k ar hi ca C it tfo rd ew N ar H ro D et Barry Median Household Income 1969 Metro Areas $50,000 $46,993 $38,613 $30,000 $23,347 $20,000 n to it fa lo Bu f tro De wa Sa rk lt La ke Ci ty Po rtl an d Ph oe ni x Ch ica go Tu cs on Ha rtf or d Ne w Yo rk St .L ou Lo is s An ge le s M ilw au ke e Ne Bo s nt a At la nv ille so co m a co an cis ck tin le ig h Ra Ta Fr Ja Sa n Au s Barry Percentage Change in Median Household Income Metro Areas, 1969-1999 120% 110% 100% 80% 60% 40% 25% 20% 0% -4% -20% Barry Median Household Income 1999 Metro Areas $65,000 $63,297 $55,000 $48,594 $45,000 $36,758 $35,000 sc ci n ra n Sa F k o d or ar N ew H tf ar to la At it go a nt n s Bo C ca hi D ro et s Au tin s k x s a n d e lo ity lle gh ui ni le m or fa so ke an C vi o e e ei f l o Y l c t u n L o g u c r e a a o . B Tu R Ta Ph ak An ew Po ks St ilw c N s tl L M Ja Lo Sa