ABSTRACT
Cities are hubs of economic activity. The economic base of a metropolitan area influences a number of social indicators, including a city's racial composition, segregation, and education level. In recent decades, urban economies have changed. The impact of deindustrialization—the decline of manufacturing—has heavily impacted many American cities, particularly in the former industrial heartland of the Great Lakes and Northeast. Suburbanization has shifted industry and retail out of central cities and to areas accessible primarily by car. Globalization has made it possible for companies to “shop” for tax-friendly cities, pitting regions against each other in an attempt to win investment. Corporate concentration has resulted in fewer and larger companies who even can invest, and they are most often concentrated in larger cities at the expense of smaller metropolitan areas.
As metropolitan areas face such challenges, political institutions affect which policies can be pursued. City government is often organized around pro-growth coalitions of business leaders and local government officials called urban growth machines. Urban growth machines operate on the assumption that economic growth is necessary and desirable. In contrast to such machines, residents have organized for reform, giving rise to progressive urban politics. Progressive urban politics tends to place the interest of residents over companies, typically investing in public services and instituting protections for residents.
