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 twe
ntieth century, technology eroded the employment base of most rural communi
ties, depressed incomes, and made out-migration the only recourse for milli
ons. The fortunes of rural communities are diverging. Some are continuing t
o face economic decline. Others are trying to cope with rapid growth in pop
ulation, land use conflicts, and growing demand for public services. The tw
enty-first century could instead favor rural communities. Economic and demo
graphic trends are reducing the cost of distance and increasing the value o
f space. Technology is reducing the need for proximate labor Demand for rur
al community lifestyle is growing. With effective rural policy, rural commu
nities could contribute much more to the national economy.