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Two examples help illustrate the barrenness of this approach 32 THEORIES OF REGIONAL SELF-BALANCE and the theory and policy cul-de-sac to which it leads. For instance, Leslie Curry has asked whether central place theory has reached a dead end, and claimed that it has not because an ideal and still to be developed central place theory would integrate the facts of location and operation of stores, of behaviour of consumers, of flow of traffic, of the route networks, of the flow of funds and all the myriad observations of the relevant parts of the urban economy.

28 It might well be argued that the rise of the Modern Capitalist State, with a major increase in central and local government expenditure on housing and local authority welfare provision had transformed this picture in the later twentieth century. Also, it now appears that net immigration into the rna jor urban areas in Britain from other cities and regions has declined to relatively small proportions, with some of the main areas such as London actually losing working population. But in fact this neither 'disproves' the accuracy of Marx's mid-nineteenth-century diagnosis nor the relevance of many of his observations to current regional and urban problems.

Marx does not assume that this causes a crisis of underconsumption under any circumstances, since 'the immediate effect is to increase production in the other industries that furnish the first with the means of production'. As a result 'although machinery necessarily throws men out of work in those industries into which it is introduced, yet it may, not withstanding this, bring about an increase of employment in other industries'. Modern capitalist industry also creates employment inasmuch as it opens up new world markets for both raw materials and finished products, and promotes demand for labour in creating new infrastructure (canals, docks, 37 CAPITAL VERSUS THE REGIONS tunnels, bridges, and so on).

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