Amazon and similar multinational companies have grown to become an essential part of world trade. Instead of going to the store, the store now comes to you. Well, this is convenient for the consumer, but what does it do to our cities? In the long run, the short-term profit of the private firm comes at what expense to the entire community?
If everything is so great, how come we have so much to complain about?
There are many articles discussing globalization but in my opinion the theory behind the phenomenon is lacking. I think that many people present globalization as if it is a clear-cut, good or bad issue. Doing so derails our ability to understand it. Globalization is good for some people and bad for others. To support one side of the debate and dismiss another is to turn your ears from the genuine distress of those beside you.
If you’ve been following my posts and the theoretical model I’ve presented, you too have come to the rather disturbing conclusion – That this model fits any free market. Whether it is a city, a manufacturing plant, or a service company, it seems that every free market seeks to achieve agglomeration, a state where there is only one supplier and zero competition.
What determines a city’s size and the area of its economic impact? What is the connection between ‘Hassle-distance’ and the theoretical gravity model I’ve demonstrated earlier? I want to elaborate more on the Suppression Zone of the city and I’ll tie it all together here.