More city means more state

Quiz question: Which megatrend probably shapes the 21st century most profound – and is it least recognized?

The usual suspects arise: artificial intelligence, synthetic biology, the end of the regular -based world order, the awakening of ecological consciousness. All important developments. And yet there is a change that is more subtle and that is precisely because of this: urbanization.

The result: birth rates in cities are falling in cities. The great irony of our century is: Despite higher life expectancy and better medical care, the world population will shrink from 2080. Hardly anyone expects it, but the demographic signs are clear.

Bloated administrations

One question arises: If cities are breeding sites of innovation, creativity and economic vitality, why are you tending to bloated administration, high taxes and growing budgetism?

The German national economist Adolph Wagner provides the answer. His law named according to him describes a fundamental phenomenon: with growing prosperity, state expenditure also increases – not only absolutely, but also relative to economic output. The citizens are calling for more and the state delivers. Life claims that were previously carried individually are increasingly collectivated.

Wagner’s law is also true in the country that likes to understand itself as particularly close to citizens and efficiently: Switzerland. A new study by the Institute for Swiss Economic Policy (IWP) brings up amazing things. In cities, the administration employs an average of 19.6 full -time positions per 1000 inhabitants. In rural communities it is only 7.7. Zurich is the leader with 29.8 positions and administrative costs of CHF 4054 per capita. However, administration in agglomerations grows particularly dynamically: Switzerland’s urbanization is progressing – quiet but unstoppable.

A look at the overall location: Since 2011, the Swiss population has grown by 12.7 percent, the economic output per capita adjusted by 7.6 percent. However, the personnel expenditure of the public sector – from the federal government, cantons and municipalities – rose by 22.7 percent in the same period.

The silent megatrend of the 21st century is called urbanization. He doesn’t just change where and how we live. But also who we are and what kind of state we want. The city promises autonomy and possibilities, but it creates new dependencies – especially from the collective. The cities grow, Switzerland becomes a city state. And with it the state grows – and nobody noticed.