Cities thrive on interaction

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Recently I received a good book recommendation from David Ginsburg, president of Downtown Cincinnati Inc. – “Triumph of the City,” by Edward Glaeser. He spent all his life in big cities, and his book gives us fascinating insights about the workings and advantages of larger cities.

I was not a big city boy, but was raised in a small town of 3,500 people. Yet Cincinnati has been my home for nearly 35 years, and I’m an enthusiastic member of its fan club! Reading Glaeser has helped clarify for me the lure of city living and the factors that keep big cities vibrant.

One of Glaeser’s persuasive points is that humans learn from other humans, and we learn more when there are more people around us. In larger cities people can more easily learn from a constant flow of new information that comes from observing the actions (both successes and failures) of others.

While the Internet can provide huge amounts of information, we learn more deeply and thoroughly when we’re face to face. It is often the subtle nuances that are shared in these interactions that add to our knowledge base in a way the Internet cannot provide.

This enriched urban knowledge improves skills, productivity, innovation and growth. For example, Americans who live in a metropolitan area (which includes the center city plus surrounding areas) with more than a million residents are 50 percent more productive than Americans who live in smaller areas. This relationship between size and productivity holds true regardless of the level of education, IQ and experience of the workers.

The Cincinnati metro, which has more than 2 million residents, benefits from the advantages of size. Beyond productivity and innovation, studies suggest that metro areas create greater happiness among their residents. Glaeser quotes studies that find that people who live in areas that are more urban report being happier than those who live in areas that are less urban.

But, here’s the catch: Metro areas have grown, but city centers have not. If cities are so great, why have we seen population declines? The Census Bureau’s recently released Ohio census results show that population declined in almost all of Ohio’s large cities, including Cincinnati. In many large cities, the people have not continued to do what initially caused our cities to grow into vibrant communities.

They have not enhanced the human interaction that spurs innovation and the entrepreneurial spirit. They have not taken care of our citizens through quality public education, a sufficient supply of quality teachers and good curriculum. They have not encouraged competition and diverse thinking.

However, and very important, all population segments in our cities have not decreased. A report released last Wednesday by CEOs for Cities states that since 2000, the number of college-educated young people (25- to 34-year-olds) has increased nationally by 13 percent. The number of young college-educated people choosing to live in the center core and close-in neighborhoods grew at twice that rate. In Cincinnati, this group increased by 28 percent, but only 10 percent in the metro as a whole.

Urban economists have recognized that the strength that comes from human collaboration is the primary reason why cities exist and flourish. Let’s have the good sense to build upon the strength of our city and take the actions needed to nourish its growth.

George Vredeveld is director of the Economics Center and the Alpaugh Professor of Economics at the University of Cincinnati’s College of Business.