Tyler at MR:
Paul Krugman has a good blog post on that topic, here is one of his points:
…once upon a time dispersed agriculture ensured that small cities serving rural hinterlands would survive. But for generations we have lived in an economy in which smaller cities have nothing going for them except historical luck, which eventually tends to run out.
Krugman suggests that eventually many smaller cities will indeed fade away, although the process of equilibration may be a long and slow one. All of his points are well-founded, nonetheless I can see a few factors favoring the continuing existence of small cities on a greater scale than many might be expecting:
I agree with both. Competitive growth oriented businesses will locate in large cities, but cost of living and welfare can be more efficiently had in smaller. I see some balance. Also, foot voting wants choices and differentiation …