The Rural Economy in a New Century

This article discusses the economic status of rural America. It focuses on the current status of rural areas and the incipient forces that will change life in rural areas through the early twenty-first century. During the twentieth century, technology eroded the employment base of most rural communities, depressed incomes, and made out-migration the only recourse for millions. The fortunes of rural communities are diverging. Some are continuing to face economic decline. Others are trying to cope with rapid growth in population, land use conflicts, and growing demand for public services. The twenty-first century could instead favor rural communities. Economic and demographic trends are reducing the cost of distance and increasing the value of space. Technology is reducing the need for proximate labor. Demand for rural community lifestyle is growing. With effective rural policy, rural communities could contribute much more to the national economy.