The Importance Of Economic Development In City Limits

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It is safe to say that all cities want to secure their financial freedom and flexibility. It is not only the goal of most United States cities, but also of United States citizens. Economic growth and prosperity signify health and abundance for a city, therefore bringing status and power. “An advantageous economic position,” as Peterson puts it, “means a competitive edge . . . relative to other localities” (Peterson, 22). It is believed that with a healthy economy, and more importantly, a growing economy, comes the need for jobs and production. Further, when cities pursue economic development and stake their claim in the market they can “produce a good that can be sold in an external market, labor and capital [will] flow into the city to help …show more content…

While Peterson makes a convincing argument, he claims the interconnectedness between economic and social development is not always beneficial to all parties involved, usually at the cost of the low-skilled, low-income individuals. A city government that promotes economic policy and development is not necessarily doing so to enhance social welfare in its municipality. As Peterson stated himself, “One does not consider whether it has a positive or negative effect on the total range of social interactions of each and every individual” (Peterson, 21). In fact, economic policies and development often work at the disadvantage to the social well-being of a city’s residents. For example, Peterson explains that when a city focuses on economic development, “the city seeks to obtain an appropriately skilled labor force at wages lower than its competitors so that it can profitably export commodities” (Peterson, 26). In this case the city is not concerned with livable wages, benefits, or the well-being of its workers. While Peterson proposes that a benefit to economic growth within a city is that residents obtain jobs, earn and income, and pay that back into the city’s budding economy, in reality if the business that the city is promoting is simply concerned with keeping wages as low as possible, then hardworking citizens become pawns in the business’s profit-making agenda. Citizens are taken advantage of by being given low wages and by being expected to spend that money for the benefit of the city’s economy. Cities and businesses have the end-goal of profit and economic well-being for the business in mind, but this often means completely disregarding the economic and social well-being of the individuals working for the business. In this case, promoting business has a negative impact on the individual’s

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