Technological Advancement, the Urban-Rural Divide and Bridging the Differential Interests of American Citizens | The Urban Lens Newsletter

Any complete explanation for why the American citizenry is so divided would have to include a combination of factors like economic inequality, media Influence, mistrust in institutions, urban and rural interests, globalization, and technological advances.

But since that is all too much to write about in a short essay such as this, over the past couple of weeks I’ve focused only upon the ways that technological breakthroughs have tended to polarize the interests and priorities of urban dwellers vis-à-vis rural dwellers.

This is a conversation which, in my view, needs to occur if some of the divisions in American society are to be overcome by reason, rationality, and political compromise, and the specter of violent conflict can be put to rest. 

Since the decade of the 1950s, numerous historical observations and data trends all point to the exponential growth of technology.  It can be seen in the miniaturization of electronic components, the processing power of computers, the amount of data generated and processed globally, the time it takes for new technologies to be developed, adopted, and replaced by even newer technologies, and the transformation of industries and markets through creative destruction.  It can be seen in new product innovations in computers, software, semi-conductors, telecommunications equipment, and a host of other developments that have come together to dominate modern information technology and help shape contemporary America.

And in at least one respect, these breakthroughs should come as no surprise.  That is, more and more investments are getting made in technological innovation.  In point of fact, from 1953-2020, the average year-to-year growth rate of American investment in R&D by governments and industries was a little over 9%,^[i] while the average year-to-year growth rate of the nation’s gross domestic product (GDP) averaged about 4%.^[ii]  Basically, this means that national investments in R&D have been growing over twice as fast as the national economy.

Given the differences in the nature of urban and rural areas, it seems almost commonsensical that this rate of investment in technology, and the resulting technological advances, would have differential effects on urban and rural interests and priorities.    

Wanting to be clear on these differences, I asked Chat GTP to characterize both urban and rural interests and priorities.  The AI’s answer is summarized in the table appended at the end of this essay.  Of course, it is full of generalizations, and certainly not everyone within either category shares exactly the same interests and priorities.  Nevertheless, the table makes clear that, at least on the face of things, the two are indeed quite different. 

Accordingly, in considering the differences between the two, one key observation is that they go a long way toward explaining why many if not most of technological innovations have concentrated in urban areas.  Most technological breakthroughs over the past decades align much better with the interests and priorities of urban dwellers relative to rural dwellers.

Urban dwellers generally experience better digital connectivity, including high-speed internet access and widespread broadband infrastructure. This connectivity facilitates access to online resources, information, and services, with all of the advantages these bring to urban relative to rural interests and priorities.  This also improves urban dweller’s job opportunities in the technology sectors such as information technology, software development, and digital services, most of which is concentrated in urban centers.   

Most technologically-driven economic growth, innovation, and job creation in sectors like finance, education and healthcare occurs in urban rather than rural areas.  Inasmuch as technological advances disproportionately improve public transportation, high-quality education, healthcare access, and advanced technological infrastructure, as compared to agriculture, natural resource-based industries, and traditional manufacturing, advances in technology favor urban relative to rural interests and priorities.

Urban areas are more likely to adopt and benefit from smart city technologies, including sensors, data analytics, energy efficiency, and smart infrastructure, all of which are improved by huge R&D expenditures.  Enabled by advanced logistics and transportation technologies, urban dwellers are also more apt to benefit from the convenience of e-commerce and rapid delivery services, and to have easier access to a wider range of the new goods and services made available by the new technologies.  Cities are more likely to serve as hubs for digital innovation and entrepreneurship.  Urban dwellers may also have greater access to technology incubators, co-working spaces, and networking opportunities that foster the benefits of innovation.

On the flip side of the coin, rural dwellers are likely to experience more substantial challenges in digital connectivity, including slower internet speeds and limited broadband access. The urban-rural digital divide can hinder access to online education, telecommuting, and e-commerce, thus disadvantaging rural relative to urban dwellers. 

While some rural areas benefit from job growth in technology-driven sectors, far more face challenges in creating and attracting employment in these sectors. This can contribute to higher unemployment rates in certain rural regions.  Also, while telemedicine can (and in some extent does) benefit rural healthcare, challenges such as limited internet access and the need for advanced medical infrastructure can hinder the widespread rural adoption of telehealth services.

This is not to say that the benefits of all technological advancements have completely bypassed rural areas.  For instance, technological advancements in precision agriculture and farm automation have positively impacted many rural areas. More than a few farmers use technologies such as GPS, sensors, and drones for efficient crop management. 

But the point is that, as a pretty good rule, the many benefits of the exponential growth of technology over the past decades are concentrated in urban (blue) areas, not rural (red) ones. 

This having been said, it is important to recognize that the relative advantages that technologically-driven benefits bring to urban areas are primarily the indirect result of the better alignment of technological progress with the economic and geographical realities of urban areas.  It is the economic and geographical realities of urban areas – such as higher population density, larger labor markets and consumer markets, more economic opportunities, greater density of medical care and educational institutions, etc. – that drive these different interests and priorities.  They are not the direct result of any sort of value-laden political or public policy decisions. 

Of course, even though the the main causes of the relative advantages technological progress bring to urban areas are economic and geographical and largely beyond the realm of political choice, the responses individuals and policy makers make to these relative advantages are not.  

Open and respectful conversations that recognize these disproportionately large urban-advantages and benefits, and the reasons behind them, and consider options to ensure improvements in the conditions faced by both urban and rural dwellers are thus hugely important.

One of the best ways I know of to help overcome the dysfunctional divisions in American society is to recognize, respect and thoughtfully discuss the realities that characterize the wide variety of circumstances into which various people throughout the country find themselves thrown, and to which they must respond.  Conversations that foster mutual understanding and focus upon common challenges are vital. 

While technological advancements present distinctly different effects in urban relative to rural communities, they also present also many common challenges.  Disparities in access to broadband and connectivity affect many people in both categories, as do challenges in access to high quality educational institutions, educational technology, online courses, and digital resources.  Many people in both categories face challenges related to job opportunities, skills training to adapt to evolving industries, and access to telehealth and healthcare infrastructure.

Public policies that bridge technological gaps, enhance connectivity and improve digital literacy are also hugely important.  Public policies that facilitate open and mutually respectful conversations between urban and rural residents, promote education and information access, and invest in infrastructure disparities and economic development strategies that benefit both urban and rural areas are essential for addressing the interests of all Americans, regardless of their location or circumstances.

Bill Bowen

^[i]           https://fred.stlouisfed.org/series/GDPC1

^[ii]           https://fred.stlouisfed.org/series/GDPC1

Source: Substack