TAILIEUCHUNG - A Companion to Urban Economics - Arnott and McMillen - Chapter 19

C H A P T E R N I N E T E E N Financing Cities INTRODUCTION In 1904, St Louis, Missouri hosted the World’s Fair. The seven-month fair included exhibits from 62 countries and had an attendance of over 2 million visitors. At the time of the Fair, St Louis itself had a legitimate claim to being one of the premiere cities in the USA. | A Companion to Urban Economics Edited by Richard J. Arnott Daniel P. McMillen Copyright 2006 by Blackwell Publishing Ltd I CHAPTER NINETEEN Financing Cities Robert P. Inman Introduction In 1904 St Louis Missouri hosted the World s Fair. The seven-month fair included exhibits from 62 countries and had an attendance of over 2 million visitors. At the time of the Fair St Louis itself had a legitimate claim to being one of the premiere cities in the USA. It was the country s fourth largest city behind New York Philadelphia and Chicago and it had an average worker s wage that was 20 percent higher than the nation s per capita income. The city s population had grown at an annual rate of 4 percent over the previous 20 years roughly twice as fast the nation s overall population growth. St Louis had become the gateway to the West. At the time of the 1904 World s Fair the song Meet Me in St Louis promised a good job a good home and a good time. Today few willingly accept that invitation. The city population has been in a steady decline since its peak at 856 796 residents in 1950. At the time of the most recent US Census 2000 the average city income was 16 000 per person 26 percent below the national average. The city s unemployment rate was percent compared to a national average rate of 4 percent. The rate of poverty for St Louis residents was percent roughly twice the national average. It is true that economic trends have been moving against older industrial cities but even against 11 sister cities of the Northeast and Midwest St Louis offers a poor comparison. She ranks 12th of 12 in current rates of population growth negative and actually last of all large cities in the USA third highest in the percentage of residents living in poverty third highest in the rate of city unemployment highest in the rate of crime and 10th in the rate of real appreciation in median city home values. In 1952 St Louis had 51 percent of the region s employment within its borders. .

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