I just realized that there is a definite cyclical element to historical urban/suburban growth patterns. Companies in relatively new industries that only need t

I just realized that there is a definite cyclical element to historical urban/suburban growth patterns. Companies in relatively new industries that only need to hire a few experts do not need urban rents: They can attract people from afar and hold that talent hostage in a small town, because the options for employment in the field are limited. This describes both classical "company towns" with dorms and factories and companies that emerged in the consumer software boom of the 80's, for example Sierra Online was HQ'd in Oakhurst, CA, a town of a few thousand people in a region with about 10,000. The maturation of a competitive industry gradually pools the talent into an urban center, as hiring demands increase, more managerial and financial elements are needed and more of the workers hop between companies. Sierra moved to Bellevue, and then to LA during the 90's amidst a flurry of mergers. Companies that occupy monopoly positions don't experience the same pressure to move or change. Epic Systems, a contemporary to Sierra, still has its HQ in Wisconsin, and its company culture has resisted work from home. And work from home is a kind of last step in enlarging the worker pool, since the online world effectively represents the "world's biggest city" - a vast, unknowable thing that we have barely begun to tap into. It does not have the exact form of a physical megacity takes, but in terms of building strong networks that generate productive relationships, it can supplant physical presence in many instances. Plus, the rent is very low, so everyone can move there. The core premises of the megacity still hold validity. Not everyone is an office worker or a multimillionaire, and we continue to have many occupations that benefit from local connectivity and physical presence. But the megacity as a speculative playground, where the real estate market is used to stash wealth, might be done. The playground relies on growth keeping up with debt, but as debt piles up you get zombie companies. Japan went through this in the 90's, and everyone else may be catching up now.