Harvard professor praises cities as clusters of innovation, industry, intellect

Edward Glaeser, Ph.D., the Fred and Eleanor Glimp Professor of Economics in the Faculty of Arts and Sciences at Harvard University, discussed “Economics of the City” at The University of Scranton’s fall Henry George Lecture on Oct. 22. His presentation revolved around his thesis that cities serve as hubs of opportunity, education and growth.
“Cities are mankind’s greatest invention,” Dr. Glaeser said. “They enable us to become more human by learning from each other and by working collaboratively.”
Dr. Glaeser opened his discussion with an analysis of the housing market in the United States, and the impact of cities on that market. He claimed that cities still have great potential for economic growth.
“Long-run price growth has occurred more steadily in the densest areas of this country, in the most-productive metropolitan areas,” he said. Overall, he claimed, more urbanized areas have income levels that are five times higher than those that are less urbanized.
Dr. Glaeser praised cities as powerful tools for their residents, especially in developing nations, adding “cities are really the answer in terms of economic productivity in these [developing] areas.” He applauded cities as “places where [people] can change their world and find their path out of poverty.” In the developing world, according to Dr. Glaeser, there is a correlation between individual happiness and city residence.
Perhaps the greatest contribution of cities, Dr. Glaeser noted, is the “urban ability to move ideas and shed knowledge.” He cited examples of Chicago’s skyscraper boom and Detroit’s automobile industry as hubs of knowledge and clusters of innovation, of industry and of intellect. He praised education – human capital – as the “bedrock on which the economic success of this country rests.”
He then cited three attributes necessary for urban renewal in order to revive and replenish the United States’ tired cities. First, small firms are needed. Second, intelligent people are needed to succeed in those small firms. Third, those firms and people must establish connections to the outside world. “Skills are most necessary when you need to reinvent yourself,” he said. Cities that have completed this rebirth, according to Dr. Glaeser, include Seattle, Philadelphia, Boston and New York City.
“Our greatest talent as a species is the ability to learn from the people around us,” he said, “Particularly in skilled cities.” He elaborated on this crucial interaction – and its impact on urban renewal – by saying, “Knowledge is more important than space, and that is why cities came back.”
Dr. Glaeser has published numerous books, articles and commentaries about cities and their economic growth. In addition to teaching at Harvard, he also serves as director of the Taubman Center for State and Local Government and director of the Rappaport Institute for Greater Boston. He is also a senior fellow at the Manhattan Institute and contributing editor to City Journal.
The Henry George Lecture Series is organized by the Economics and Finance Department at The University of Scranton and the campus chapter of Omicron Delta Epsilon, an international honor society for economics. The Henry George Lecture Series is funded by a grant from Robert Schalkenbach Foundation. It is the preeminent public lecture series in economics in Northeastern Pennsylvania and has included lectures by eight Nobel Laureates.

Catherine Erbicella ’14, Media, is a management major with a minor in philosophy and participant in the Special Jesuit Liberal Arts Honors Program and the Business Leadership Honors Program at The University of Scranton.