I put the graphics for this on my blog:
http://michaelperelman.wordpress.com/

Peter Temin has published a fascinating article regarding economic
conditions in the early Roman Empire.  The story he tells describes the
remarkable economic progress that the Romans had achieved.

Temin, Peter. 2006. "The Economy of the Early Roman Empire." The Journal
of Economic Perspectives, 20: 1 (Winter): pp. 135-51.

One particular graph suggests another side to his story.  It shows the
price difference between grain in Rome and in other parts of the
Mediterranean region on the vertical axis and the distance from Rome on
the horizontal axis.  The graph has an excellent fit.  The closer to
Rome, the higher the price.

The picture I get from the graph is one of Rome as a black hole, sucking
in resources from the rest of the Empire.  The closer to Rome, the
stronger the demand.  Temin, in effect, was confirming Lewis Mumford's
thesis that urban life depends upon the surrounding areas supplying its
resource deficits.  The provision of these resources often creates
environmental havoc.

In addition, impoverishment of the rural hinterland tends to create a
mass exodus producing an explosion of unsustainable slums.

The fashion among economists is to argue that the urban areas supplied
the creativity and ingenuity that create prosperity, although one could
easily make the case that these urban areas create a brain drain that
further impoverishes the surrounding areas.

I don't mean to condemn urban life in general, but that the enthusiastic
celebration of affluent urban life should be balanced with a careful
assessment of its costs.

--


Michael Perelman
Economics Department
California State University
michael at ecst.csuchico.edu
Chico, CA 95929
530-898-5321
fax 530-898-5901

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