Cities, glorious cities!
A review of Edward Glaeser’s “Triumph of the City”
Cover of “Triumph of the City: How Our Greatest Invention Makes Us Richer, Smarter, Greener, Healthier, and Happier” by Edward Glaeser
Overview
More than half the world’s population lives in cities. It’s a relatively recent phenomenon, and it’s probably beneficial for humanity overall. Edward Glaeser, professor of economics at Harvard University, examines what makes cities our “greatest invention” (p. 9) in “Triumph of the City” (2011). He defines cities as “the absence of physical space between people and companies” that “enable us to work and play together, and their success depends on the demand for physical connection” (p. 6).
So why exactly are cities humanity’s greatest invention? Cities are more productive for several reasons: they offset the costs for companies for land and labour; they quicken innovation since intelligent inhabitants are more easily connected; city-dwellers are happier than their rural counterparts even after controlling for education and income; and, cities have smaller carbon footprints than suburbs and rural areas (p. 6-14).
So why is “Triumph of the City” a valuable book? There are many misconceptions about cities, such as them being dingy, crowded, and squalid places to live where noise, pollution, and high living costs reduce one’s overall economic well-being and happiness. But Glaeser challenges most pessimistic assumptions about cities, demonstrating why they are crucial to the success of our species and societies. Seeing that the book was published more than a decade ago, the data may be slightly out of date, but the general arguments remain relevant. Despite their faults, it would be foolish to ignore cities’ role in how we live, work, and play. After reading this book, readers will think of cities more optimistically, and some may even consider moving.
Key takeaways
I decided to read this book because cities are essential to understanding the success of provinces, states, and nations alike. Cities are societies in their own right, microcosms within nations brimming with life that offer many stories and valuable data to policymakers, academics, and laypeople. Below are just some important lessons about cities I gleaned from this book which I believe will remain relevant for decades to come.
Proximity remains relevant, even in our digital age. Glaeser argues concentration of talent makes it easier for businesses and entrepreneurs to conduct business, especially for outsiders (p. 26), because of something called “human capital externalities,” in which “people become more productive when they work around other skilled people” (p. 28). For instance, he provides credible studies demonstrating that face-to-face interactions yield higher amounts of trust and cooperation (p. 34-35), which is ultimately good for business, and how the proximity of other competent people makes you, as a worker, more competent (p. 35). Besides, even if it was for non-economic matters, most people will likely wish to be in proximity to others for relationships and sex. I’m reading this book after months of pandemic lockdowns have limited people’s mobility, yet proximity remains fundamental since our need to connect physically is so human. Most of us need another’s touch and company to stay sane and healthy.
Cities with monoculture economies decline more easily than economically diverse cities. In “Chapter 2: Why Do Cities Decline?,” Glaeser writes at length about Detroit’s fall as a car manufacturing economy, arguing that the city neglected “competition, connection, and human capital” (p. 43). What was once the pinnacle of efficiency and innovation, the car assembly line ultimately devasted Detroit since many assembly-line jobs required limited skills and knowledge, explains Glaeser. Labourers became less skilled, and there was little incentive for them, businesses, and policymakers to increase human capital (p. 48-49). As the city rested on its laurels, Detroit lost out to car manufacturers in Japan and Korea who produced cheaper, more gasoline-efficient cars that consumers desperately craved. Glaeser mentions other reasons why cities decline but does not thoroughly investigate other cities or take a comparative approach to study declining cities across the globe. I felt there was too much emphasis on a fairly obvious, well-known example. Nevertheless, his insights are valuable since the Detroit case study demonstrates how the same financial advice applicable to our personal lives remains the same for cities: diversify!
Possible solutions for declining cities. One of the most helpful contributions of Glaeser’s book is how he offers solutions for declining cities. We all must understand some general solutions since all cities may face this troubling prospect. Contrary to what many believe, grandiose infrastructure projects do not save cities from collapse because, as Glaeser explains, cities are made of people, not infrastructure. Infrastructure is not the cause but the result of economic success (p. 62). If a city is shrinking due to population loss, it could save money by demolishing vacant housing units. Such an approach also improves the city’s appearance by reducing the number of ramshackle homes, opting to turn the areas into open and green spaces for the public; that’s what Leipzig, Germany did quite effectively (p. 66). Of course, he is not suggesting all infrastructure is terrible or should be avoided. Spain, for example, was able to connect smaller towns to larger economic centres with high-speed rail, which benefitted small-town residents since they did not have to sell or abandon their main assets (such as their homes) to work jobs in more economically viable areas (p. 64-65).
It’s this type of flexible thinking that makes Glaeser’s arguments far more convincing. He does not suggest a single silver bullet solution to all city woes. Complex policy options may differ between jurisdictions and populations, but general ideas apply to most. Governments should avoid Soviet-style forced relocation to revitalize declined or declining cities. Economies cannot just artificially pop up with government money. Be wary of place-making strategies, and focus on helping poor people instead, he explains (p. 65).
High real wages are not necessarily a good thing. Many may assume that high housing prices relative to incomes must make a city a poor and challenging place to live, resulting in lower living standards. But the reality is the complete opposite. “If places have unusually high real wages,” writes Glaeser, “then something is wrong with those places” (p. 130). Expensive cities are expensive because everyone wants to live there. Everyone wants to live in big cities because they offer more and higher-quality amenities, which they value. The increased demand, consequently, pushes prices upward. If many people in a city, town, or village have high real wages, it’s probably because their area does not offer much, and no one wants to live there. It’s insights like this from the author that help readers of modest knowledge in economics better understand the complexities of city life and citizen welfare. Our initial assumptions may be that cities are awful because of the cost of living, but Glaeser clearly shows here how that’s not necessarily true. Economics is complicated, but the basic tenants of supply and demand remain relevant.
Defunding the police may not be an intelligent policy. Throughout history, a typical pattern is that trade, commerce, the rule of law, and individual rights are impossible to uphold when states do not possess the means to enforce them. The same applies to cities. Glaeser says that
city governments must not react to fiscal distress by cutting municipal services, like policing. The easiest way to ensure that a city won’t survive an economic crisis is to turn it into a dangerous no-man’s-land. Unsafe streets will repel the skilled workers that are so vital for urban rebirth. (p. 132).
To be clear, this passage in the book does not pertain to the “defund the police” movements from 2020 following the tragic death of George Floyd; the book was published over a decade ago. Additionally, it’s important to note that Glaeser and his colleague, Denise DiPasquale, published an academic paper about urban unrest which acknowledges how the use of police force can trigger the thing it’s trying prevent: “The Los Angeles riot and the economics of urban unrest” published in 1998 in the Journal of Urban Economics. It’s a controversial subject since racial minority groups are genuinely concerned about being wrongfully profiled and mistreated by public authorities and citizens alike. However, the importance of adequate security remains. Police presence, no matter how controversial, is necessary for cities and communities to thrive. We all need a sense of security and safety to fully engage with those around us for both commercial and non-commercial activities alike.
Immigration is necessary for cities and countries. As Glaeser succinctly writes: “Cities are good for immigrants and immigrants are good for cities.” (p. 252). He provides quite a bit of evidence throughout the book proving this statement, and I feel it’s necessary to highlight this point considering the polarized discourse on immigration in the West. Immigration is one of those topics that gets everyone’s blood boiling. Those on the extreme right think all non-white immigrants to Western countries worsen the social fabric of the host country and are nothing more but charity cases seeking to enforce their beliefs onto others. Those on the far left believe in unrestrained immigration and accuse everyone who opposes such policy as “racist” or “xenophobic.” Extremists of any stripe are usually not the sharpest tools in the shed and policymakers should not blindly follow their advice. As Glaeser explains, an influx of immigrants usually benefits cities because they bring their talents and serve as vital connections between countries, in addition to making cities “more fun” (p. 252), with the greater variety of cultures, art, and food. A nation will benefit as a whole if it works “to admit more skilled immigrants” (p. 252), despite the threat of neo-nativist opposition (p. 253). Societies would likely fare worse if they decide to cease immigration; it would force them to rely on limited domestic talent that may have trouble keeping up with growing nations. It’s all the more relevant today where access to critical supply chains and new markets can dramatically determine one society’s success over another. Although, a more in-depth discussion of immigration’s effects on housing markets and wages would have made this text more convincing.
All prosperous cities attract and retain talent, but in different ways, whereas unsuccessful cities are usually unsuccessful for similar reasons. That is the general argument of “Chapter 9: How Do Cities Succeed?” where Glaeser states: “Successful cities always have a wealth of human energy that expresses itself in different ways and defines its own idiosyncratic space.” (p. 222). What’s common amongst all thriving cities is that they “attract smart people and enable them to work collaboratively.” (p. 222).
This chapter is helpful because of Glaeser’s thorough investigation of several case studies: Tokyo, Singapore, Gaborone, Boston, Minneapolis, Milan, Vancouver, Chicago, Atlanta, and Dubai. Readers will appreciate how his research scope is not merely on first-world societies.
Essentially, some cities in the developed world attract and retain top talent through formal educational institutions, even though most learning occurs in the workplace, a point he acknowledges. Less developed societies usually obtain skills from intelligent and driven entrepreneurs with little to no formal schooling. “In some cases, either raw political power or sensible probusiness policies” are part of the solution, while other cities emphasize a long tradition of higher education and universities that bridge communities with local economic activity. Other cities can attract talent merely with a high quality of life or the pleasures that the city has to offer, which could be aided with limited barriers to construction and more affordable living (p. 224).
What’s important to understand is that, just like with countries, down does not mean out for cities. Every city can improve economically and socially, and there is no such thing as a one-policy solution. Community members, local business owners, and policymakers should get creative with their solutions and be unafraid of carving out a unique identity for their city. Many paths to success exist, but they all rely on competent, hardworking, and driven people. It is an inspiring message that I hope other readers will also take away from this book.
Other quick, important insights
There are always multiple other examples of key takeaways one can glean from this book. Here are just some worth exploring further:
The “urban poverty paradox” and the importance of accurate data analysis (p. 71)
Poor people living in cities are generally happier than the poor living in rural areas (p. 74).
The issues with giving tax breaks to businesses to relocate to impoverished areas labelled as “empowerment zones” (or “enterprise zones”) (p. 86) and Glaeser’s better solutions.
Policy insights on providing poor people with housing vouchers to move to low-poverty areas as a way of improving socio-economic mobility, and its mixed results (p. 88).
Glaeser’s three simple solutions to improve the regulatory maze of permitting and urban development (p. 161-162).
A detailed but brief analysis about urban sprawl and its disastrous consequences (Chapter 7: Why Has Sprawl Spread?).
Why cities are environmentally friendlier than rural areas (Chapter 8: Is there Anything Greener Than Blacktop?).
The reasons why beautiful public spaces and coffee shops are insufficient for attracting and retaining talent, and what else is needed (p. 260).
Who should read this book?
This book’s general arguments remain relevant. Anyone looking for more information on urban planning and local policy development could start with “Triumph of the City.” Glaeser intelligently responds to several misconceptions about cities and proves that they are one of the best decisions humanity has ever made. Well-functioning cities are crucial for a state’s, province’s, and countries overall success. They are the economic, educational, and talent powerhouses of most countries, and it would be illogical to ignore their impact, despite the growing urban-rural divide in many countries.