Interrelationships That Exist Between Economic Decision Making, Social Institutions, And Space

In this week’s lecture we discussed some of the interrelationships that exist between economic decision making, social institutions, and space. Using the works of Cooley, Veblen, and Hurd, we saw how these interrelationships can generate both positive and negative social outcomes (i.e. transportation stimulating market development vs misallocation of investment due to conspicuous consumption). For this week’s question, I want you to pretend that you are the sole urban planner working for a very powerful state, and that you have been tasked with erecting a city on the site of a newly discovered gold deposit. Like all cities, this city will require infrastructure, housing, businesses, social services etc (assume that the gold mine is attracting enough people to stimulate sufficient demand). In 200* words or less, construct a succinct and effective statement that clearly explains which ‘city building’ activities you will undertake yourself, and which activities you will leave to the market. Your answers do not need to be comprehensive (i.e. you do not need to discuss every possible decision), but make sure to include a clear justification for each of the decisions you discuss in your answer.



Do not restate any of the sentences contained in this question. Try to use examples from the lecture and class discussion to help support your answer. Outside information will be accepted, but we will fact check any and all claims we cannot immediately verify.