Econ 366 - Chapter 3

Econ 366 - Chapter 3 - Chapter 3 Urbanization and Economic...

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Chapter 3 Urbanization and Economic Growth in the United States
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Economic Growth: transfer of labor and inputs from rural agriculture to urban manufacturing -> link between industrialization, urbanization and economic growth USA urbanized later than Western Europe (already urbanized in the early 20 th Century Prerequisites: (a) Technical progress in urban life (b) Technical progress in agriculture
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DISEASE Until modern times : Agriculture produced a surplus of both food and people – sustained urbanization (a) Urban death rates were high -> cities were unable to sustain themselves (b) Africa had high death rates in agriculture -> surplus of food and people were inadequate to sustain large urban areas (c) People emigrated to north -> respite from disease, allowed rural sector sufficient health to produce a surplus (d) Some infections spread to the north (Rome 5000/day died due to smallpox, bubonic plague killed upto 90% of city population) – plague reduced the population of Europe by 35% (e) Impossible to build cities like classical Rome or Hangzhou (pop 1m in 12 th century) Modern times -> ability to control killer diseases (London : last major plague in 1665) by clean water, construction of sewers, vaccinations and antibiotics
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LONG TERM TRENDS (a) Pattern of urbanization in US -> similar to Europe (b) Much more rapid (Agriculture -> Industry in 2 centuries)
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Econ 366 - Chapter 3 - Chapter 3 Urbanization and Economic...

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